Does the 30% tax facility affect my tax refund on deductions regarding the purchase of a Dutch principle residence?
The only way it affects the tax deduction is that because of the application of the 30% tax facility, you might go into a lower tax rate. The tax percentage you pay will be lower but also the tax refund is based on this lower rate.
Does the 30% ruling have an effect on my social security situation?
Often the 30% tax facility is applied in such a way that you pay less tax and fewer social security premiums. This may lead to lower benefits if at one point you need to depend on them. With regard to your pension, there are ways to prevent this (under certain conditions). Please contact your HR officer for further details.
How much tax do I pay in The Netherlands?
The Netherlands has a progressive tax rate between 33% and 52% taxable. Furthermore, there is taxation on substantial interest and savings and investments. Do not forget that there are also many tax credits and benefits for certain groups of people, ((single) parents, house owners, workers, non- working spouses, etc). When you have the 30% tax facility, you will pay significantly less tax because part of your remuneration will be paid as a tax-free expense allowance.
Can the 30% tax facility be continued when there is a switch in employer?
If you meet the requirements, yes. The new employer and you need to re-apply for the 30% tax facility. If you have started your employment no later than 3 months after you have left the previous one and you are still considered to be scarce on the labour market and have specific expertise, the 30% tax facility will most likely be approved again by the Tax Administration.
I live outside the Netherlands, but I am going to work for a Dutch employer. Can I apply for the 30% tax facility?
Yes, also employees who do not live in the Netherlands can get the 30% tax facility. Only if your wages are taxed in your home country based on the tax treaty between your home country and The Netherlands, the 30% tax facility can not be applied.
If I change my nationality to the Dutch nationality, is the 30% tax facility still applicable?
Your nationality has no effect on the 30% tax facility. Only the periods that you stayed/worked in the Netherlands before, may lead to a deduction of the term during which you may use the 30% tax facility.
If the 30% tax facility is granted by the Tax Office, is it possible that my family members also exchange their drivers license?
Yes, with your 30% certificate both you and your family members can exchange their drivers license.
What is the fiscal position of the non-working partner?
The fiscal position of the partner in the Dutch tax system is largely independent of yours. Yes, in principle, it is possible to shift expenses and income between you and your fiscal partner as a tax unity, but your wages will be taxed independently. To compensate income differences, Dutch tax law has a number of tax credits for different situations such as non-working partners, single parents, etc.
Non-working partners are entitled to a tax credit (the so-called algemene heffingskorting). One of the conditions is that the working partner pays enough tax to equal the tax credit.
In my salary statement, I find that my employer already withholds taxes from my salary. Do I still need to fill in my tax return at the end of the year?
If you have nothing to report and the tax administration has not asked you to fill in your tax return, this is not necessary. Nevertheless, we advise you to consult an expert to see if you are entitled to some tax refunds. Especially in the years of migration (incoming and outgoing), you are likely to get a refund.
When do I need to fill in my tax return?
Most taxpayers will receive a request from the tax authorities to fill in their tax return at the beginning of the year. The deadline on that letter is generally 1 April. You can also receive a form at a later date. The deadline will be stated on the form.
Is it possible to receive monthly tax refunds regarding deductions of the purchase of a Dutch principle residence?
Yes it is. House owners can deduct the interest on the house they actually live in. This tax refund can be paid to you in equal monthly parts.
Are there any disadvantages of having the 30% tax facility?
The 30% tax facility reduces your employment income to 70% of the original agreed salary. Consequently, this 70% will be the basis for accuing your pension entiltlements and social security benefits.
What do I have to do when I receive a Dutch income tax return from the Tax Office?
You do need to return it before the deadline mentioned on the form. Note that for the year you migrate to or from The Netherlands you need to complete the so-called ‘M' form. If you do not receive a form and you think you are entitled to a tax refund or levy, you can apply for a tax form by calling the tax administrations information number 0800 0543.
What if my application for the 30% tax facility is denied by the Tax Office?
Your employer can choose to cover the so-called extra territorial expenses (such as cost of living allowance, home visits, double housing) anyway. The difference is that without the 30% tax facility the employer will have to prove that you have actually made expenses which derive from the fact that you were recruted from abroad.
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