Selfservice – How to apply for the 30% ruling yourself
How to apply for the 30% Ruling yourself
It is possible to apply for the 30% ruling yourself. There are many employers and expats who file the applications on their own. And with success. Below is a easy to follow guide to filing the application yourself:
1) The 30% ruling needs to be agreed upon between employer and employee. So the 30% ruling needs to be part of the employment agreement.
Warning: The wording for the 30% ruling requires specific legal wording with the right formula: so not just mentioning the 30% ruling. If the wording is not correct, the application will be denied if the tax authorities review the contract. In practice, this part is not always reviewed with the application. This means that it will be reviewed if there is an employer audit which can lead to retroactive denial. Therefore, always verify that you apply the correct wording.
2) Verify that the employee meets the conditions of the 30% ruling.
4) The form needs to be signed by both the employee and a representative of the employer. After signing, verify that all documents are included. Send the application to the address listed below.
Note: We recommend using registered post with delivery tracking and confirmation of receipt.
5) The tax authorities will send a letter confirming receipt.
6) The tax authorities will then review the application and will generally respond with 6 -8 weeks with:
a. Request for additional information;
b. Denial of the application;
c. Approval of the application.
7) Verify the nature and the reason for the additional information needed. If the tax authorities request additional information because some documents were forgotten with the initial application then you can just send the documents. But, if the tax authorities have specific questions, it means that there is reason for them to deny the 30% application. At this point, it is important that you consult a professional.
8) If the application is denied, you have 6 weeks to file an objection.
9) If the application is approved, verify that the confirmation letter is conform the application filed. Pay attention to:
a. The employee details
b. The employer details: if the company has several entities, make sure the name and the wage tax number correspond with the entity listed on the wage tax return and salary slip;
c. The term that the 30% will be granted for;
If any of these are not conform the application, a letter of objection will need to be filed within 6 weeks.
10) After verification of the confirmation letter, the 30% ruling can now be legally applied to the monthly payroll. If the 30% ruling was already being applied, then no adjustment is needed. However, if the payroll was based on full taxation, then the 30% tax free income can be corrected retroactively until the start date of the 30% ruling. This can be done in an one-time salary recalculation. This will result in a refund.
1) The application for the 30% ruling needs to be filed within 4 months.
2) The 30% ruling is subject to annual review. This means that the tax authorities will annual review whether the employee meets the minimum income requirements. If the employee does not meet the minimum income requirements in a year, the ruling will be denied retroactively for that year and all future years. We recommend reviewing the payroll in November of each year. This will allow enough time to make corrections if needed. Consult a professional if you have questions on this.
3) If the employer details (name, wage tax number) change during the year without informing the tax authorities the 30% ruling will be denied until a request for change of employer is filed.
4) If the 30% ruling is not calculated properly in the payroll this can lead to additional tax for the employee and penalties for the employer;
5) The application is the single most important tax planning tool available in the Netherlands for employees. Filing yourself may save € 200 to € 300. But for such an important form, those savings are very insignificant compared to the risk that your application is filed incorrectly and the application is denied. We therefore always recommend using a professional.
At any time and at any stage during this process, you can always contact us for assistance.
- 30% ruling
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