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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