Does Remote support the Dutch 30% ruling?

Article author
Nneka
  • Updated

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 the eligibility requirements are met, this means the employee is able to enjoy a tax-free allowance equal to a maximum of 30% of their gross salary. An employee who applies for the 30% ruling after 1 January 2019 receives the benefit for 5 years (Source).

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

Dutch 30% ruling requirements

  • the employee must be recruited from abroad or assigned to the Netherlands;
  • the employment income of the employee has to be subject to Dutch wage tax withholding;
  • the employee must have specific expert knowledge which is scarce in the Dutch labor market;
  • in more than 16 months of the 24 months prior to the Dutch employment, the foreign employee must have resided in an area more than 150 km from the Dutch border;
  • in (an addendum to) the employment contract, employer and employee have to agree that a tax-free allowance of up to 30% is included in the compensation package.
  • The 2021 annual taxable income (after applying the 30% ruling) should be at least EUR 38,961 (EUR 38.347 in 2020; EUR 37.743 in 2019).
  • For employees younger than 30 years of age, with a master’s degree comparable to a Dutch master's, the taxable income (after applying the 30% ruling) should be at least EUR 29.149 (EUR 28.690 in 2019).

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 or within their first 4 months in the Netherlands. If the employee has activated this ruling with their previous employer, it cannot be transferred; and we will assist the employee in the re-application process. 

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