Filing for a 30% application
The 30 percent ruling may only be applied for by the employer after it has received a written confirmation to do so. To obtain the 30 percent ruling, the employer and the employee, have to make a joined filing for the 30% ruling.
Please note that the signing date on the employment contract should be set before the arrival date of the employee. The maximum validity of the 30 percent ruling is 5 years as per 2019. This duration may be reduced if the employee resided in the Netherlands in the past 25 years. If you received your 30 percent ruling before 1 January 2019, a transition period may apply. See under Transition period 30% ruling.
Need help applying for the 30% ruling? We are happy to preparing the 30% ruling filing for you and your employee. Contact us for more information.
EXTRATERRITORIAL COSTS 30% FACILITY
An employee enjoys a number of benefits from the 30 percent ruling next to the tax-free reimbursement of extraterritorial costs. These benefits are:
- Tax-free reimbursement need to be specified (no need to keep an administration for it).
- 30% of the gross salary can be paid out free of tax, provided that the employee pays tax over the annual set minimum salary amounts (see under income requirements 30% ruling).
- The employee may choose to have his or her (box 3) asset taxation not applied for in the Netherlands (i.e. no taxation of wealth tax or box 3 tax).
- The partner of the employee enjoys the same tax exemption in box 3 as employee.
- As a 30% ruling holder, a Dutch driver’s license can simply be obtained by presenting one’s home country driver’s license.
The following expenses are part of the defined extraterritorial costs of the 30% ruling:
- Off-setting the cost of living in the Netherlands.
- Cost of living components include amongst others meals, gas, water and electricity.
- Expenses related to visiting the Netherlands to familiarize oneself the Netherlands and its culture, including family members who may need look for housing, a school or childcare.
- Expenses to convert official personal documents, such as residency permits, visas and driver’s licences are part of the extraterritorial costs.
- Expenses for medical examination and vaccinations for the stay in the Netherlands.
- Duplicate expenses to maintain one’s house in his or her home country.
- Hotel and restaurant costs.
- Expenses for moving and storage.
- Traveling expenses to visit family, friends and reunions.
- Extra expenses for tax advice.
- Education expenses for yourself and your family member related to your stay in the Netherlands.
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