30 percent ruling Netherlands
Our specialized office can assist you with applying for the 30 percent ruling. We are experienced in working for expats and know how to make sure your situation is well presented to the Dutch Tax Authorities. This will increase the chance your application is accepted. We have also achieved good results for internationals who came to us for a second opinion after their first application was denied.
The 30 percent ruling is quite beneficial since 30 percent of your salary is paid out on a tax free basis. This is meant as a compensation for the so-called extraterritorial costs which include the extra cost for accommodation and travel in a foreign country.
30 ruling Netherlands: benefits
If you have the 30% ruling you can opt for partial non-domestic taxation which releases you from the obligation to pay taxes on your worldwide wealth in box 3. On top of this you will be exempt from tax on income from savings and investments, as well as taxation on dividends from substantial shareholdings, with some exceptions. Along with some other practical advantages, such as an easier procedure for acquiring a Dutch driving license, this makes the 30 ruling a very favourable arrangement for expatriates.
30 ruling requirements
- In order to obtain this 30 ruling in the Netherlands you are required to show a particular scarce skill or expertise. A well-structured and timely presentation is essential in the request to the Tax Service.
- Also the timing of employment agreement and immigration are very important. You have to be recruted or stationed in the Netherlands from abroad; so you have to have lived in another country before you came here.
- You will need a Dutch payroll where the Wages Tax is withheld on your income; the 30 percent tax free grant must be deducted from the gross income.
- If you wish to start a business in the Netherlands, it is very worthwhile to investigate whether you could qualify for the 30%-ruling as employed by your company. In this case the company and payroll will need to be set up before you start working.
30 percent ruling changes from 2012
- In 2012 the 30 ruling changed which has both limiting and broadening effects. The specific expertise requirement is mainly based on a minimum salary requirement of € 36.705,- (in 2015) taxable salary plus the 30 percent allowance, which means about € 52.000 gross salary (including the 30 percent tax free part).
- Specific regulations apply to graduates and research scientists. If PhD graduates are offered a job in the Netherlands after they graduate, they are not obligated to have lived abroad before accepting the job. The minimum taxable salary needs to be € 26.605. For research scientists there is no minimum salary.
- The validity of 30 percent rulings already granted before 2012 will remain.
On the other hand, since 2012:
- The granted period for the 30 ruling is reduced from 10 to 8 years
- Periods in which you have lived and/or worked in the netherlands will be deducted from these 8 years. (Dutch people are obliged to have lived at least 25 years abroad before being recruited to be counted as an expat)
- If you have lived within 150 kilometers of the Dutch border during the last 2/3 part of 24 months you will not be seen as an expat. This can count if you are recruted from Belgium or Germany.
Once the 30 percent ruling is granted the ruling will have to be processed and applied to both Wages Tax return and Income Tax return.
Our office is well-experienced with these requests and has been successful on a regular
basis even in difficult situations and where second opinions are needed. If you would like to know what the possibilities are in your case or seek advice how to apply the 30 ruling, please do not hesitate to contact us.