30% RULING

The 30% ruling is a Dutch tax facility aiming at attracting foreign employees with specific skills or expertise to work in the Netherlands. On this page you will find a brief overview of the 30% ruling including the conditions, the application procedure and two fictional examples.

GENERAL

The 30% ruling provides a tax free allowance (30% allowance) which is deemed to cover all so-called extraterritorial costs. Extraterritorial costs are defined as the extra costs for staying outside of the country of origin. Such costs relate for example to:

CONDITIONS

DURATION

The 30% ruling can be granted for a maximum of 5 years (60 months). This period will be reduced with earlier periods of stay or employment in the Netherlands.

SALARY NORM

APPLICATION PROCEDURE

EXAMPLE 1

Without 30% ruling (EUR) With 30% ruling (EUR)
Gross salary 45.000 45.000
30% allowance 0
_____
6.652
_____
Taxable income 45.000 38.348
Subtract: tax / social security 16.808 14.323
Add: 30% allowance 0
_____
6.652
_____
Net salary 28.192 30.677

EXAMPLE 2

Without 30% ruling (EUR) With 30% ruling (EUR)
Gross salary 55.000 55.000
30% allowance 0
_____
16.500
_____
Taxable income 55.000 38.500
Subtract: tax / social security 20.543 14.380
Add: 30% allowance 0
_____
16.500
_____
Net salary 34.457 40.620

In this example, the 30% allowance amounts to € 16.500. This is 30% of the salary. This example shows that the benefit of the 30% ruling is € 6.163 (€ 40.620 – € 34.457).

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