I amsterdam - 30% Tax Ruling

This 30% tax ruling was introduced as a way to welcome foreign professionals with skills that are scarce in The Netherlands. Ultimately, it allows these professionals to gain employment for their skills with a maximum of 30% tax on their income. When a non-resident employee takes up employment in the Netherlands, he/she will have to meet certain conditions in order to qualify for the 30% facility. Principle conditions dictate that the employee should:

• Come from abroad.
• Have work experience.
• Possess specific expertise that is unavailable or scarce in the Dutch labour market.

Belastingdienst
The Belastingdienst, or Dutch tax services arm (www.belastingdienst.nl/english/), can provide detailed information about this incentive. To summarise, the incentive means that, for those employees meeting the conditions, additional costs for temporary employment outside the country of origin will be set at a maximum of 30% of the wages received from the respective employment. The employer will need to demonstrate that related costs were actually incurred. Employer and employee must file a joint application for the 30% facility with the arm of the Belanstingdienst called the Tax and Customs Administration Department of International Issues.

_{Updated 12 July 2007.}