Extraterritorial costs

/Extraterritorial costs

Extraterritorial costs

Extraterritorial Costs

If the 30% ruling is granted you can receive a maximum of 30% of your income as tax-free reimbursement for extraterritorial costs and no proof of these costs is required.

When your actual expenses for extraterritorial expenses exceed the amount of the applied 30% ruling, your employer can reimburse the actual made extraterritorial costs. In that case the tax authorities require proof of these made expenses.

In the situation where you failed to meet the conditions of the 30% ruling, you can also be reimbursed the actual expenses for extraterritorial expenses.

Please note that the actual extraterritorial costs can’t be reimbursed together with the 30% ruling. It is either the maximum of 30% of your income or the actual extraterritorial costs. You can’t have it both at the same time.

In 2004 the Ministry of Finance published a list of extraterritorial costs. The tax authorities updated a few of those listed costs on their website and in their latest Payroll Tax Handbook. Please find below an overview of those costs that can be classified as either extraterritorial costs, other costs that can be reimbursed tax-free, or other costs that cannot be reimbursed tax-free (and become part of your salary).

  1. Cost of Living Allowance /Utilities  …read more
  1. Foreign Service Premium / Expat Allowance / Overseas Allowance  …read more
  1. Relocation Expenses / Moving Allowance   …read more
  1. Househunting /  Acquaintance Trip    …read more
  1. Permits …read more
  1. Storage Expenses …read more
  1. Losses …read more
  1. Free Accommodation / Housing  …read more
  1. Reimbursement Expenses / Purchase House / Brokers Fee …read more
  1. Travel Expenses / Home-leave   …read more
  1. Tax Advisor …read more
  1. Tax-Equalization …read more
  1. Language courses …read more
  1. Telephone …read more
  1. Food & Drinks …read more
  1. Social Security …read more                                                      

Technical reference (for tax professionals): Ministry of Finance, 11 February 2004 and Handbook Dutch Payroll Tax 1 October 2016