The Netherlands has a special tax regime for expatriates, the so-called 30% ruling, which provides a substantial income tax exemption of up to 30%, for a period of up to 120 months. This is viewed as a reimbursement for the extra costs involved in living abroad.
- According to this rule, the employer may grant the employee a tax-free allowance of up to a maximum of 30% of his or her remuneration. The remuneration includes incidental and flexible forms of income such as bonus payments and stock options. Termination and pension payments are excluded.
- In order to qualify for the 30% ruling, the following conditions must be met:
- The employer must make a reasonable case that the employee possesses specific expertise that is not available, or is scarce in the Dutch labor market
- The employee must be recruited from abroad
- The employer must be a Dutch wage tax-withholding agent
- The exemption is available for a period of 10 years (120 months).
- After a period of five years, the tax authorities can request that the employer demonstrate that the employee still meets the conditions.
Gerrit-Jan Doorneweerd, registered Pension Advisor,
Amsterdam, +31 (0)20 6200825
Mobile, 0651 471 9 – six – five. (Also in the evening and weekends.)
Please give me a call