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Dutch Tax: Frequently asked questions about the 30 percent ruling

Dutch Tax: Frequently asked questions about the 30 percent ruling

Dutch Tax: Frequently asked questions about the 30 percent ruling

As of 2012, the requirements for the 30 percent ruling have been changed, with some requirements being added and others becoming less important. Further, there are specific transition rules for those who were already benefiting of the 30 percent ruling prior to 2012.

Due to these changes, many expats are unaware whether they are still eligible for the 30 percent ruling or if these new rules affect their current 30 percent ruling. We have gathered the most frequently asked questions we have had over the past couple of months.

Is the 30 percent ruling only applicable if my gross salary is more than 51.100 euros?

No. The salary requirement under the 30 percent ruling is a minimum taxable wages of 35.770 euros. As long as your taxable salary is more than 35.770 euros, the ruling is applicable on income exceeding 35.770 euros, with a maximum of 30 percent of the taxable income, of course.

I now benefit from the 30 percent ruling but I want to work for a different company - can I transfer the ruling?

Yes, you can switch employers and continue the 30 percent ruling with your new employment. You and your new employer will need to submit a new application for the ruling, however. The gap between your previous job and the new one cannot be more than three months.

I meet all the conditions for the 30 percent ruling, but my employer is not willing to submit the application. Can I submit the application myself?

No, unfortunately not. The employer and the employee need to apply jointly. If the employer does not want to apply for the 30 percent ruling, the employee is not entitled to receive this benefit.

Can I apply for the 30 percent ruling if I was a student in the Netherlands?

It depends whether or not you were considered as a Dutch resident during your studies. If you came to the Netherlands only for your studies and the centre of your social and economic life was outside the Netherlands, then you may not be considered Dutch resident. In this situation, you may be eligible for the 30 percent ruling if you meet the other requirements for the ruling.

If you came to the Netherlands for a PhD, and have secured a job after finishing the PhD, you will also be considered as being hired from outside.

Can I apply for the 30 percent ruling if I have lived in the Netherlands before?

Yes, that is possible. The years spent in the Netherlands will be deducted from the maximum duration of the 30 percent ruling (eight years).

For example, if you have lived in the Netherlands for three years previously, and you come back to the Netherlands again, you will be eligible for the 30 percent ruling for five more years.

Is the 150 km restriction applicable?

The High Court in the Netherlands asked a prejudicial question about the 150 km requirement, as there are doubts whether this ruling is in accordance with EU law.

This requirement will change if the High Court of Justice judges that it is not compatible with EU law. It might affect rulings which were denied on the basis that the 150 km requirement was not met.

Can my partner benefit from the 30 percent ruling?

Your partner cannot benefit from the 30 percent ruling on income. However, under the 30 percent ruling you are exempt for box 3 (tax on your savings and investments).

If you and your partner are fiscal partners, your partner can allocate his/her savings to you and then these savings will not be not taxed either.

I began working for a company in the Netherlands a while ago and only just found out about the 30 percent ruling. Am I still able to apply for it?

Yes, that is possible. The 30 percent ruling needs to be submitted within four months after the commencement date of your contract in order to receive the ruling retroactively.

If the four months period has passed, you can still apply for the 30 percent ruling, but the commencement date will then be the month following the submission date.

What does the transitory period mean under the old legislation from before January 2012?

If you received the 30 percent ruling before January 2012, you are subject under the old rules for a period of five years after the date of granting.

After these five years, you will have to meet the new requirements, which means your taxable salary should be more than 35.770 euros and you must have lived more than 150 km away from the Dutch border prior to your arrival in the Netherlands.

If you do not meet these conditions, the 30 percent ruling will no longer be applicable.

What happens if the 30 percent ruling was applied incorrectly?

At the end of the year the tax authorities will check if employees have met all the requirements.

If it turns out that, for example, the minimum salary requirement was not met, the 30 percent ruling was applied incorrectly.

As a consequence, the employer will face an additional tax assessment payroll tax. The employer is allowed to pass on these costs to the employee.
 

Patricia van der Hut is a partner at Broadstreet, providing specialist tax and accountancy services to expats.

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Patricia

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Patricia van der Hut

Patricia van der Hut is partner at Broadstreet. Broadstreet is specialized in rendering services to expats in the areas of tax, accountancy and payrolling.

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dmcarrero 07:06 | 14 November 2017

Hi, I would like to know if I can apply to the 30% having a zoekjaar VISA? If I get a job and I don't want to switch immediatly to the highly skilled migrant visa, I am still elegible for the 30% rule or this is only possible with a Highly skilled migrant visa?

Prashant Sharma 19:23 | 1 August 2018

Hi dmcarrero, Did you get 30% ruling in your favor?

santiago.luck@g... 19:15 | 18 August 2018

Dear Maa'm Your website is really very informative. Thanks for such a big knowledge House. I moved to Netherlands in March 2018 through Intra company transfer visa. Here, I am getting 2500 euro as expense. My current employer did not file 30 percent ruling for me infact I did not know about it. Recently I got job offer from another employer, they are ready to file Highly Skilled Migrant visa, they are agreed upon 30 percent ruling as well. My salary is also matching with required highly skilled migrant salary. I am joining them in the month of September. Could you please let me know if I would be eligible for 30 percent ruling as I am working in Netherlands from last 6 month and I don't have 30 percent ruling from my current employer. Also, I am paying taxes in my home country. Thanks and Regards.

Alexandra Enea 14:13 | 26 March 2019

I had 30% ruling for the full 2018 and at the end of 2018 I moved to another country, so I unregistered myself from municipality and all. In case I return in the Netherlands in 2019 (say June), would I still be able to benefit from the 30% ruling? Or do I need to be away for 2 years to benefit again of this?

Mazen Sayed 18:19 | 29 April 2019

Hi, what if i changed from my first employer in the NL to another, whilest first employer didn't apply for the 30% ruling. Is the new employer able to able for it? Or only first employer who has to apply for the 30% ruling?

smaranikaguru 14:06 | 15 May 2019

Hello Ma'am, Is an Expat eligible to get childcare allowances if he is in 30% tax ruling scheme. Request you to reply this query.

casperfrost 17:23 | 4 September 2019

Hi, thanks for a great site, a real life saver for questions big and small! I will be changing employer during the last quarter of this year. My new employer is willing to submit a 30% ruling request on my behalf. As I will need to have a "grace period" of 2 months between the two jobs due to a non-compete clause in my contract, I am wondering if I will have to reach the ~53K€ limit, or whether only the months in which I am employed are considered? So in short, if I with only 10 months of active employment reach 10/12 (83%) of the 53K limit will that be enough to allow me to continue my 30% ruling?

AdamJohn 22:30 | 13 September 2019

Hi, My first company in the Netherlands applied for my 30% ruling a few months ago but I haven't got it yet and received my salaries as usual. Now I'm going to change my employer. Will I still be eligible for the 30% ruling and will I receive the balance of my previous salaries from new employer? Thank you