Does Remote support the Dutch 30% ruling?

Yes, we do. The Dutch 30% ruling is a tax advantage for highly skilled migrants moving to the Netherlands for a specific employment role. If they meet the eligibility requirements, the employee can enjoy a tax-free reimbursement equal to a maximum of 30% of their gross salary.

The 30% reimbursement should cover all extra-territorial costs. If the 30% ruling is applied, the actual extra-territorial costs may not be reimbursed tax-free in addition to the 30% reimbursement. If the actual extra-territorial costs are higher than the 30% reimbursement, the higher costs can be reimbursed tax-free.  

See also: If I already have the Dutch 30% ruling activated, can it be transferred to my new employer?

Dutch 30% ruling requirements

• The foreign employee should have specific expertise that is not available, or is scarce in the Dutch labour market.
• A lower (gross) salary norm amounting to EUR 30,001 (i.e. EUR 42,858 including tax-free reimbursement of 30%) applies to individuals with a Master's degree (MSc) who are younger than 30 years of age.
  • This is based upon the following salary norm (for 2021):
    • A general (gross) salary norm amounting to EUR 39,467 (i.e. EUR 56,381 including tax-free reimbursement of 30%).
    • No salary norm is applicable for scientific personnel and researchers at educational institutions and (subsidised) research facilities.

• The employee should have lived outside a 150 kilometre radius of the Dutch border during more than 2/3 of a 24-month period before taking up Dutch employment.
• For university doctorates hired within a year after obtaining their PhD, a relaxation of the conditions was introduced.
• An employee who applies for the 30% ruling after 1 January 2019 receives the benefit for 5 years. However, periods of prior stay in the Netherlands will, in principle, be deducted from this maximum duration period.
• The 30% ruling must be applied for within four months of starting the Dutch employment. If not applied for within this time, the ruling, if granted, will not apply retroactively as of the beginning of the Dutch employment, but only as of the month following the month in which the application was filed.
• The 30% ruling may only be applied if the employee is included in a Dutch wage tax administration. Under the provisions of the 30% ruling, employees who are, based on facts and circumstances, considered as resident taxpayers may opt to be treated as partial non-residents.
• The 30% ruling will end when the conditions are no longer met. Furthermore, the 30% ruling lapses at the end of the next wage tax period following the wage tax period in which the Dutch employment/assignment was terminated (usually the end of the next month).
• The 30% ruling cannot be applied on post-departure income (after the settlement period mentioned above). Hence, the 30% ruling can, in principle, not be applied on bonuses and equity income that becomes taxable after having left the Netherlands (so-called “trailing income”; regardless of whether the right to such benefit already vested during the Dutch employment period).
• The income should be subject to Dutch wage tax withholdings. Wage tax is only withheld on wages paid to employees, hence the 30% facility is not applicable to independent contractors.

What next?

At Remote, we are able to apply for the 30% ruling on behalf of the employee. This can be done during the employee's onboarding. If the employee has activated this ruling with their previous employer, it can be transferred as long as the new employment is agreed upon within three months after the end date of the previous employment. In this case, Remote will also assist with the application process.