What is the 30% ruling?
The 30% reimbursement ruling (better known as the 30% ruling) is a tax advantage for highly skilled migrants moving to the Netherlands for a specific employment role. When the necessary conditions are met, the employer can grant a tax free allowance equivalent to 30% of the gross salary subject to Dutch payroll tax.
Applying for the 30% ruling in Amsterdam
The 30% ruling is equivalent to a maximum (effective) tax rate of approximately 36.4%. The resulting tax free allowance is considered compensation for expenses that a foreign employee experiences when working outside their home country. As of April 2011, the Expatcenter has been involved in an official cooperation with the Dutch Tax Office (Belastingdienst) regarding the 30% ruling. Applications from companies that are part of the highly skilled migrant scheme of the IND can now be processed directly at the Expatcenter. For a list of recognised companies please check the public register of recognised sponsors.
What does the 30% ruling mean to you?
From a tax perspective, the salary agreed upon between the employee and employer may be reduced by 30%. In return, the employee should receive a 30% tax reduction as reimbursement for expenses. This is the most common way it is applied as it does not influence the salary burden for the employer. However, the employer is not obliged to pass on the advantage of the ruling to the employee. In practice the employer can partially or fully take the benefit.
Read more in-depth information about the 30% ruling, discover more benefits of the ruling, and find out whether you are eligible.
See a list of Expatcenter partners, including tax advisors.