How to qualify
The 30% ruling is meant to attract highly skilled employees to The Netherlands. The term attract means that the employee must be hired while residing outside The Netherlands.
Until 2012, a highly skilled employee was considered to have at least a business degree, 2,5 years of work experience and wages above € 50.000. As of 2012, the qualification as a highly skilled employee is entirely based on the level of your income and is subject to annual review.
Please note that The 30% Ruling Specialists will check if you qualify for the 30% ruling free of charge. Contact us.
If you meet these requirements, then both the employee and the employer file an application with the Dutch tax authorities requesting approval for the 30% ruling. All applications are subject to individual review. If the Dutch tax authorities approve your application, you will receive an official decree confirming that you are eligible for benefits of the 30% ruling.
When making the 30% ruling application, it must be filed with relevant authorities within four months of the start of the employment. If the request comes after this period, a shortened maximum duration of the tax ruling will be applied. Additionally, it will become applicable starting the first day of the following month of which the application has been put in.
To avoid this partial loss, it is important both employee and employer provide all information necessary to file the 30% ruling application as soon as possible.
If you want assistance with filing the 30% ruling application, please contact us.
The tax authorities granted you the 30% ruling and you found a new job. How does that work?
Should an employee to whom a 30% ruling had already been granted by the Dutch authorities finds a new job with another company he and his new employer would have to reapply for the tax regime again. However, the employee would have to sign a contract with the new company within three months of his or her last job. In all cases, the three months starts with an idle period known as Garden Leave which is a period of inactivity at the end of the employee’s last job.
Now you qualify for the 30% ruling conditions, you may want to see the financial implications. We developed a 30% ruling and income tax calculator that will do an income requirement check and calculate the maximum tax-free reimbursement. In some cases your income may be sufficient to qualify for the 30% ruling, but can’t get the maximum reimbursement. The following examples will show you that in detail:
Assuming your salary is € 54,000, it, therefore, means that you qualify for the 30% ruling. If you select only the 30% ruling option in the calculator, you will notice your taxable income (taxable wage) exceeds the income requirement of € 37,000 (2016: € 36,889). You therefore can benefit from the maximum possible tax-free reimbursement.
Assuming your salary is €40,000, it, therefore, means that you qualify for the 30% ruling. If you would use the maximum amount of the tax-free reimbursement you would have a taxable income of € 28,000, not enough to qualify for the 30% ruling. Therefore, the tax-free reimbursement has to be adjusted so your taxable income (taxable wage) will be at least € 37,000 (2016: € 36,889).