The 30% ruling facility is applicable to international professionals who move from abroad to the Netherlands. It grants a tax-free cost reimbursement of 30% of their gross salary for the maximum of the first five years of working in the Netherlands. This tax facility enables international professionals to recoup some of their transition expenses. It is important for an employee and employer to understand how to qualify and the requirements for the application. In order to provide you with comprehensive information, Octagon presents you a full checklist for the 30% ruling as follows:
Requirements for 30% ruling application
- Being recruited outside of the Netherlands
- Having lived more than 150km from the Dutch border for more than 16 months in the last 24 months prior to the first working day in the Netherlands
- Being an employee of a business registered in the Netherlands
- Possess specific professional expertise that is not or hardly found in the Dutch labour market (see the salary criteria below)
- Have the original application form signed by the employee and employer in wet blue ink
(1) You are a highly skilled migrant
Your salary excluding the tax-free allowance is more than: €41,954 in 2023
(2) You are younger than 30 years old, have a Dutch master’s degree, and meet the salary criterion
You are also eligible when you have an equivalent title in another country.
Your salary excluding the tax-free allowance is more than: €31,891 in 2023
(3) You conduct scientific research
If you conduct scientific research at Dutch institutions, you are also eligible for the 30% ruling. In this case, there are no salary level requirements.
Necessary documents for the 30% ruling application from the employee
- Valid identification (passport or ID)
- BSN number
- Curriculum Vitae that provides your age, education and employment history
- Employment contract or assignment letter
- Work permit (when applicable)
- Proof such as utility or phone bills, bank statements, rental contracts etc. that the employee resided more than 150km from the Dutch border for more than 16 months in the last 24 months prior to the Dutch employment.
Necessary documents for the 30% ruling application from the employer
- Company details and wage tax number
- Written statement that both parties are fully aware if the consequences of the 30% ruling.
- Written statement from the employer that the skills of the employee are scarce and that they failed to find another employee with similar expertise in the local market.
Q: When should I apply for the 30% ruling?
A: You should submit your application within 4 months after you start working at a company.
Q: Can I accept a new position and retain the 30% ruling?
A: In some circumstances, it is possible to change employers while continuing to benefit from the 30% ruling. As long as the gap between positions does not exceed 3 months, you may re-apply for the ruling with your new employer.
Q: When does the 30% facility end?
A: The end date of the 30% facility is stated in the decision letter issued by the tax office to you.
Q: What is the maximum duration of the 30% ruling?
A: The date of issue of your decision determines the duration and a maximum of 5 years if used as of the 1st of January 2019.
Q: How to hire international professionals in the Netherlands?
A: The 30% ruling facility is a highly successful initiative to attract and support international professionals in the Netherlands. As such, the facility exists to enable Dutch businesses to hire the best talent possible for their unique business needs. If you need to hire talent from abroad and offer prospects, schedule a consultation with our team of experts in International Development for advice.
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