30% tax ruling - general info

The 30% tax ruling (or 30% facility) is the biggest tax advantage which many expats in the Netherlands can receive.
 
If the 30% tax ruling has been granted to you by the Dutch tax authorities, your employer can pay you (the expat) a maximum of 30% of his/her current employment income tax free. Please note that the employer can also be a limited liability company in which you (the expat) are the mayor share holder and sole employee. 
 
The payroll administration of the employer will implement the 30% tax ruling in the Dutch payroll with retroactive effect to the startdate of your employment in the Netherlands if the ruling has been requested within four months from the startdate of your Dutch employment. If the 30% tax ruling is requested later than four months from the starting date of your employmentcontract the ruling can be implemented from the month that the request has been done. Expats will have to meet two main criteria in order to be entitled to the 30% tax ruling:
 
  1. You have a specific field of expertise that is not or is only barely available on the Dutch employment market. You are deemed to possess that expertise if your taxable salary (not including the tax-free allowance) in the Netherlands is at least € 37,743 or € 28,690 (lower salary criteria for persons under the age of 30 with a Dutch university Master’s degree or an equivalent degree in a country other than the Netherlands);
  2. Of the 2 years before your 1st working day in the Netherlands, you lived outside the Netherlands for more than 16 months, at an exact (not driving) distance of more than 150 kilometres from the Dutch border.

Are you an employee with a doctoral degree (PhD)? And did you start working in the Netherlands within one year after getting your PhD? Then you must have lived more than 150 kilometres from the Dutch border for longer than 16 months in the 24 months preceding the commencement of your doctoral research. It is accepted that a person lived in the Netherlands, or within a radius of 150 kilometres from the Dutch border, during the doctoral research period in the Netherlands - or within a radius of 150 kilometres from the Dutch border. It is also accepted that a person lived in the Netherlands between the completion of the doctoral research period and the start of your employment in the Netherlands (has to be within one year after getting a PhD), or within a radius of 150 kilometres from the Dutch border.

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Partial non resident status?

One of the extra benefits of the 30% tax ruling is that a resident taxpayer can choose – via his/her Dutch personal income tax return - to be treated as a partial non-resident taxpayer for Dutch tax purposes. A partial non-resident taxpayer is subject to Dutch income tax as a resident taxpayer for Box 1 income and as a non-resident taxpayer for Box 2 and Box 3 income.

US-citizens or US green card holders with a 30% tax ruling?

A US-citizen (or US green card holder), that chooses for the partial non-resident taxpayer status, is not subject to Dutch income tax for his/her world-wide wages, but only for the wages related to his/her Dutch working days on the basis of the Dutch/US tax treaty. In this respect it is important that you keep track of the days you work/stay outside the Netherlands by means of filling in a travel calendar. 

Maximum term 30% ruling?

The maximum term that a person can receive the benefits from the 30% ruling is five years. It used to be ten years, than it became eight years and since 2019 all new 30% ruling applications have a maximum term of five years.

How to get the 30% ruling?

The 30 percent ruling has to be applied for through a specific paper form that has to be sent via regular mail to the Dutch Tax Administration. Handling of these applications can take up to five months, so a little patience is advisable. The form has to be completed in full and a lot of attachments will have to be enclosed to proof that a person meets the requirements to be entitled to the 30% ruling. 

Maguire's expatdesk has wide expertise in everything that has to do with 30% ruling applications, reapplications (when you switch employers during the term of your 30% ruing, a new application will have to be submitted in time, in order to keep your 30% ruling), appealing rejected applications and implementing 30% rulings in payroll administrations. We offer a high standard of service, communicate in English, and offer the following rates:

  1. new 30% ruling application, from € 850,00 (full application)
  2. reapplication 30% ruling, from € 650,00 (full application)
  3. appeal against 30% ruling rejections, from € 175,00 (per hour

    all of the above mentioned amounts are exclusive of VAT

Looking for assistance with your 30% ruling application? Please contact us for more information or a free proposal.

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