MEMO 30% RULING
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.