The 30% ruling (or in Dutch "30% regeling") allows expatriate employees to The Netherlands to earn up to 30% of their compensation tax-free.
In addition, the 30% ruling also allows you to opt for partial non-residency status. With the partial non-residency status you are exempt from Dutch taxation on your investments, except for investments in Dutch real estate. Finally, with the 30% ruling you and your partner are allowed to exchange your foreign driver's license for a Dutch driver's license, without having to take time-consuming tests.
Because of these benefits, the 30% ruling is generally considered to be the single most essential part of prudent tax and financial planning for contractors and their employers to the Netherlands. Therefore, the application and the implementation of the ruling should not be taken lightly.
Applying for the 30% Ruling
Tomgandhi Consulting BV is specialised in obtaining and implementing the 30% ruling and assists both employees and employers in the entire process. What we do:
- Review of and planning towards qualifying for the 30% ruling
- Application of the 30% ruling
- Implementation of the 30% ruling in compensation packages
- Personal Service
- Competitive Fees
- Application for the 30% ruling
- The employer and the employee need to contractually agree on the 30% ruling in the contract of employment;
- The employer and the employee gather the information and documents needed for the filing of the application for the 30% ruling;
- The application is filed with the Dutch tax authorities (needs to be done within 4 months of first arrival in the Netherlands);
- The Dutch tax authorities will make a formal decision on the application within 6-12 weeks;
- Once granted, the 30% ruling needs to be implemented in the salary administration to effectuate the benefit.