The 30% Ruling: What is it & what is going to change in 2018?
The new Dutch government is considering changing some important aspects of the 30 percent ruling in the new year. The tax experts from Blue Umbrella review the current situation and explain what the conditions of this tax benefit are.
Are you a highly skilled professional who moved to the Netherlands because you were offered a specific job? Then you could benefit from the 30% ruling!
The 30% ruling is a tax advantage that allows you to obtain a tax-free allowance on 30% of your gross taxable salary. This tax benefit is meant to cover the costs foreign employees make whilst working outside of their home country.
Changes to the 30 percent ruling in 2018
At this point, no changes to the 30 percent ruling have been finalised. The new government is considering reducing the maximum period, in which the 30 percent ruling can be used, to 5 years. This period is currently 8 years. However, these plans are yet to be agreed upon, if at all.
Conditions of the 30 percent ruling
The 30 percent ruling applies to you if you were recruited outside of the Netherlands or seconded from a country other than the Netherlands to work here. In order to be eligible for this tax benefit you must meet the following requirements, which were in place on January 1, 2012:
- You were recruited outside a 150-km zone of the Dutch border.
- In 2017, you have a minimum taxable income of 37.000 euros before applying for the 30 percent benefit.
Please note that the signature date on your employment contract should be set before your arrival date. The 30 percent ruling is valid for a maximum of 8 years, as mentioned above. This duration may be reduced if the employee has resided in the Netherlands in the past 25 years.
Blue Umbrella files your income tax return for you at a flat fee, with no hidden costs
You can use the tax-free allowance to cover expenses made whilst working outside of your home country. If the 30 percent ruling applies, you are not required to retain documentary evidence. However, you are not allowed to pay extraterritorial expenses tax-free as well.
You could be eligible for this tax rebate without knowing it. It all depends on your personal circumstances; so reading up on the rules concerning this refund can be very profitable for you and your family.
For more information about the 30 percent ruling and how you can apply for this exemption visit the Blue Umbrella website.
Your 2017 income tax return and the 30% ruling
Every individual in the Netherlands has to go through the process of filing their income tax return, if this has been requested by the Dutch Tax Office. This includes everyone who is employed here or receives a benefit, like the 30 percent ruling.
With an easy 3-step online registration process, Blue Umbrella makes filing your taxes straightforward and simple. Follow these steps to sign up for their Blue Tax service:
- Register via a short form.
- Log in to your MyBlue account.
- Fill in the quick tax questionnaire, so that Blue Umbrella can do the calculations and see how they can help you.
Flat fee, no hidden costs!
Blue Umbrella will always file your income tax return for you at a flat fee, with no hidden costs, even when they need to take tax benefits, like the 30 percent ruling, into account. Their tax experts have over 10 years of experience with the Dutch tax system, and will make sure that you get the maximum tax refund that you are entitled to.
Interested in more information about Blue Umbrella and their tax services? Call a Blue Umbrella tax expert on +31 (0)20 46 87 560 or fill in the contact form below.