The 30% allowance may be paid while the request for the 30% ruling is still being processed; however, if the request is rejected, taxes on the remuneration will subsequently need to be recovered from the employee. Additionally, the salary paid will need to be grossed up at the employer’s expense.
In the view of the Dutch tax authorities, the 30% ruling can only be taken into account in the payroll administration of the employer. This may cause inconvenience if the 30% ruling is issued after the end of the year in which it can first be applied. In such situations, it may be necessary to update the payroll retroactively and file corrected wage tax returns.