Incoming employees / Expats
If you were recruited outside of the Netherlands or seconded by an employer to work in the Netherlands, your employer may provide you with 30% of your salary tax free. Not all of the employees which were recruited or seconded can make use of the 30% ruling. Only when the requirements are met and the employee and employer received the approval from the Dutch tax office, the 30% ruling can be into account.
30% ruling requirements
- You have an employment relationship;
- In the 24 months before your first working day in the Netherlands, you lived at least 16 months more than 150 kilometres in a straight line from the Dutch border;
- You have specific expertise that is not or barely available on the Dutch labour market;
- You received the approval from the Dutch tax office;
Employment
The first requirement is that there needs to be an employment relationship. If you incorporated a Dutch private company with limited liability (=BV), you can also work for your BV. Then you are employed by your own BV company, which makes you having an employment relationship as well.
150 kilometres
The second requirement is that in the 24 months before your first working day in the Netherlands, you lived at least 16 months 150 kilometres in a straight line from the Dutch border. This is a strict rule, 149 kilometres (instead of 150 kilometres) or 15 months (instead of 16 months) would make you not eligible for the 30% ruling. There is an exception for people with a PhD title, but you can read about this exception in one of my next articles.
Specific expertise
You have specific expertise that is not or barely available on the Dutch labour market if:
- your salary, not including the tax-free allowance, is at least € 37,000 (threshold for 2017) or,
- you are under the age of 30 years, in possession of a Master degree and your salary, not including the tax-free allowance, is at least € 28,125 (threshold for 2017). It may be relevant to read also our previous article the following article: ,
- you work as a scientific researcher at a research institution such as an university.
Approval
The 30% ruling cannot be taking into account without approval from the tax office. Due to this a request needs to be send to the Dutch tax office. The request is on behalf of the employee and the employer. After the 30% ruling is granted, the employers payroll department is able to take the 30% ruling into account.
Orange Tax Services
My name is Soumaya Touzani and I am the 30% ruling expert within Orange Tax Services. We have extensive experience with the 30% ruling. We will be able to determine whether you meet the 30% ruling requirements. We are also able to prepare and send the 30% request, on behalf of the employee and employer, to the Dutch tax office.
