|
|
 |
Frequently Asked Questions
Q:
What does the "30% ruling" mean?
A: The 30% ruling is intended to attract employees with high specific
skills or
expertise that are scarce on the Dutch labor market to the Netherlands
by providing these employees with fiscal incentives. In this case the
offer that employees are
allowed to receive free from Dutch taxation the higher of either 30% of
their employment income or the so-called extra territorial expenses
(such as cost of living allowance, housing, home leave, etc.). In
addition, employees are also allowed to receive a tax free
reimbursement for
the expenses of an international school for their children.
Q: I heard something about wealth-income exemption?
A: If you have the 30% ruling you
can opt to
be considered as a partial non-resident taxpayer of the Netherlands.
Meaning you will be exempted from Dutch "net-wealth" taxation (with
the exception of investments in Dutch real-estate) and exempt from
taxation on any income from a substantial interest in a non-Dutch
entity.
Q: Am I entitled to the 30% ruling?
A: The 30% ruling is intended to attract employees with high
specific skills or
expertise that are scarce on the Dutch labor market to the Netherlands.
This means that you need to be recruited
while you are are outside the Netherlands or assigned to the
Netherlands. Your Dutch
employer has to make plausible that there was no candidate on
the Dutch labor market for your position. Also the
determination whether you have specific skills or expertise
that are scarce is determined on a case by case situation by the Dutch
tax authorities based on 3 factors:
Relevant
work experience
Education
level : The Dutch tax authorities want to see
a business or university
degree. But a specialized course or specific job-training may also
qualify.
Salary level
: The salary level
usually reflects the extent of
your expertise or
skills and the scarcity of these. In general an annual salary
of € 45,000
Euro can qualify you for the 30% ruling. And if
the salary
levels in your home country are significantly lower and the
salary level should therefore be measured based on the salary levels in
your home country, a qualification for the ruling is also possible.
Also highly skilled expertise that is scarce is sometimes more
important for the qualification than the salary level. We can advise
you further in this matter.
These 3 factors are taken
into consideration in relation to each other for getting the 30% ruling.
If you are assigned to the Netherlands by your foreign
employer, and you have worked more than 2,5 years in the group
of
companies, you do also qualify for the ruling (job-rotation).
Q: How can I get the 30% ruling?
A: The request for the 30% ruling is filed with the Dutch tax
authorities by both your Dutch employer and you. With the
request,
you must prove the level of your
skills / expertise by providing a copy of your curriculum vitae listing
education level and previous work experience. In addition a copy of
your employment contract (or assignment letter) must be provided. Your
Dutch
employer must provide a statement detailing your specific
expertise in relation to the position. In addition,
your
employer can
also provide information on the period the position was vacant and on
the number previous applicants to prove scarcity on the Dutch labor
market.
Tax Account has extensive experience with the application procedures
for the
30% ruling and we can organize the entire application procedure on your
and your employer's behalf.
Q: Is there a deadline?
A: The initial request for the 30% ruling should be filed
within 4 months of your first working day in the Netherlands to ensure
retroactive effect of the 30% ruling. If the application is filed after
the 4-month period, the 30% ruling will only be effective as of the
first of the month following the application.
In order to avoid any loss of the duration, we normally
file a "pro-forma" request before expiration of the 4 months
deadline, in case where you or your employer need more time to
organize the required information.
Q: For how long can I use the 30% ruling ?
A: The 30% ruling is granted for a maximum period of 120 months.
However, periods of previous stay or work in the Netherlands are
deducted from the 120-month period.
Substantial periods of stay in the Netherlands are:
Spending more than 20 workdays in The Netherlands in one of the 10
calendar years prior to applying for the 30% ruling
Spending more than 6 weeks in total in The Netherlands in one of the 10
calendar years prior to applying for the 30% ruling
Q: How do I lengthen my 30 % Ruling?
A: The 30% ruling is granted in fixed periods of 60 months. After the
first 60-month period, you can file for the continuation of the 30%
ruling for the next 60-month period. This is usually an administrative
formality and generally only requires a short statement from
your employer verifying that your skills / expertise are still
scarce.
If the continuation is granted, the 30% ruling is granted for the
remaining 60-month period.
Q: What if I am not an employee, but have my own business?
A: If you are self-employed through your own legal
entity (such as a BV or a Ltd.), the 30% ruling can also be applied for.
Q: Does my company has any benefits from me having the 30% ruling?
A: 30% of your
employment income can be paid net (without any Dutch taxation) to you.
Therefore, the basis for the determination of tax and social
security for the employer is only 70% of your total employment income.
This basis is
also used for determining the employer's part of Dutch social security
and pension entitlements (premiums). Therefore, your company can
indirectly benefit depending on your salary level.
And of course, with the 30% ruling your employer can offer a higher net
salary resulting from a certain gross-salary budget; this enables him
to become a more attractive employer to expats than without the
facility, so he can better attract skilled employees for his business.
Q: I just found out about the 30 % ruling but I am already here for a
year. Can I still apply for the ruling?
A: You can still apply. However, you have to meet the criteria set
for the 30% ruling on the day that you arrived in the Netherlands, so
not at the moment when you file the application.
Q:
I have the 30% ruling, but I have switched to
another employer. What should I do?
A:
You are able to continue your 30% ruling with a new employer.
However, the period between the last day of work for your old employer
and the start date with your new employer can not be more than 3
months.
Furthermore, a new application in the name of yourself and your new
employer needs to be filed within 4 months after your start date of new
employment.
|
 |
|
 |
|
 |
|
