Foreign employees with specific expertise working in the Netherlands may be eligible for the so-called 30% ruling. This ruling allows that such employee is provided by his employer with a tax free allowance amounting to 30% of his or her salary if certain requirements are met.
The allowance is a compensation for “ extra territorial expenses” of working outside the home country. In principle such expenses could be reimbursed by the employer tax free, which considering the amount of paperwork obviously may be burdensome. The 30% ruling provides for a forfaittair tax free allowance of 30% of the salary of the employee. As a result, the employee’s net salary increases while the employer’s total costs regarding the employee remain the same.
There are requirements that should be met to be eligible for the 30% ruling.
We can assist you with a 30% ruling application for a total fee of € 450. This fee includes research on your eligibility and the application itself.
Please contact us if you feel that you may qualify for this arrangement. We could also provide you with a second opinion in case your initial application was denied.
Should you wish that we take care of your request, the following steps are to be taken:
1. Completion of our 30% questionnaire, which can be downloaded here and which consists of 2 parts:
- Client questionnaire, to be completed by the employee. The documents required are indicated in the form.
- Power of attorney, to be completed and signed by both the employee and the employer.
2. We will file the request in case we expect that the ruling will be granted and communicate with the employer, employee and the Dutch tax authorities where appropriate.
3. We will review the ruling (if granted) and forward it to the employer with a copy to the employee.