MEMO 30%-RULING

INTRODUCTION

The 30% ruling is a Dutch tax facility aimed at attracting foreign employees with specific skills or expertise to work in the Netherlands. Application of the 30% ruling results in a substantial increase in net salary and/or a substantial reduction of the employer’s costs. The 30% ruling provides for a tax-free allowance (30% allowance), which is deemed to cover all ‘extraterritorial costs’, i.e. extra costs employees incur when living outside their own country.

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Conditions

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Duration period

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Tax free allowance

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Application procedure

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Payroll issues

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Planning opportunities