30% Ruling
The 30% tax ruling is a tax break for expat employees in the Netherlands. This is a beneficial tax credit especially for highly skilled migrants. In general an employer may choose to pay 30% of the wages, including reimbursement, tax-free. This is the basis of the Dutch 30% ruling.
The 30% ruling is an advantage on the salary where 30% of the normally taxed salary will now be paid non-taxed to the employee. For example: he or she earns gross EUR 10.000,00, you will get EUR 3.000,00 Euro non-taxed and EUR 7.000,00 Euro will be taxed as normal.
The tax legislation states that the employer may reimburse 30% of the gross wage in addition to the regular wage amount as compensation for the extra costs incurred by working or moving to the Netherlands. It is not important whether these costs are actually incurred.
Let us assist you with applying for the 30% ruling
The 30% ruling is a complex tax facility. Need help applying for this ruling? Let us know and we can start the process for you.
Who is eligible for the tax break?
As a starting point this Dutch tax exemption is applicable for highly skilled expat workers who were hired abroad to work in the Netherlands.
Recruited from abroad
You are recruited from abroad to be employed in the Netherlands and you earn a certain required minimum salary.
Outside of the Netherlands
You need to have lived 16 of the 24 months outside (150 km from the border) the Netherlands.
Salary Requirement
It is important that also your skill set meets the minimum requirements, meaning that this 30% facility can be applicable to highly skilled migrant workers.
Master's degree
If you are younger than 30 years you will need to prove that you are in possession of a Master’s degree to be able to get the 30% ruling.
How to apply for the 30% ruling?
A tax advisor, the employee or employer can apply for this 30% tax facility. The applicant needs to apply within 4 months of the first start date of an employment in the Netherlands. Most of the time, it is either the employer, or a tax advisor who files the application for the expat.
At the end of the process the employer needs to approve the application. Then, after 6-7 weeks, the applicant will receive the granting letter if all is submitted correctly. Over the next 5 years of employment, the employee can use the 30% ruling on their salary.
Changing employers
If you are currently receiving the 30% ruling and you wish to change employers, you will need to find a new employer within 3 months of the termination of your contract with your previous employer. If you are unable to do so, you will no longer be eligible for the 30% ruling. In that case we will transfer your 30% ruling to our account so that we can process your 30% ruling on your salary. To apply for you we need some documents from your side like your 30% ruling granting letter and payslips from your former employer.
Toss as your first employer
In the case your job with TOSS is your first job in the Netherlands, we will apply for the 30% ruling to the Tax Authorities for the first time for you.