30% tax ruling - general info
- You have a specific field of expertise that is not/scarcely 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 € 38.961 or € 29.616 (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);
- Out of the 2 years before your 1st working day in The Netherlands, you have been living outside of 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 been living more than 150 kilometres from the Dutch border for longer than 16 months in the 24 months preceding the start of your doctoral research. It is accepted that a person has been living 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 has been living in The Netherlands between the completion of the doctoral research period and the start of his/her 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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30% tax ruling - info for employers
Employers play an important role in successfully obtaining the 30% tax ruling. The employers have to submit the application together with the employee for whom the ruling is requested. Furthermore they have the continuous responsibility to check whether their employee still meets the conditions during the term of the 30% tax ruling period (mainly checking whether the minimim taxable wage requirements are met). Employers also benefit financially from the 30% tax ruling. If an employee has the 30% ruling, a lower part of the wage is considered income for the employee insurance premiums (NI) and pension contributions. This generally saves employers considerable amounts.
Are you an Employer looking for a calculation on how many employee insurance premiums you can save?
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. This will benefit especially to people holding substantial tangible assets.
US-citizens or US green card holders with a 30% tax ruling?
A US-citizen (or US green card holder) who chooses this 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 for the 30% ruling is five years. It used to be ten years, then 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 via specific forms to be sent via regular mail to the Dutch Tax Administration. Currently, the 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 large number 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, re-applications (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 against rejected applications and implementing 30% rulings in payroll administrations. We offer a high standard of service, communicate in English, and offer the following rates:
- new 30% ruling application, from € 850,00 (full application)
- reapplication 30% ruling, from € 650,00 (full application)
- 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.