If you come to The Netherlands to work, you may face additional expenses (known as extraterritorial expenses). The 30% tax facillity allows employers to compensate their 'extraterritorial' employees for expenses they incur in connection with the fact that they are working outside their home country. This is done by means of a fixed cost allowance of 30% of the wage.
Both you and your employer can apply for the 30% tax facility. The application for the 30% tax facility must be filled in within four months from the start of your employment in The Netherlands. Under this facility, there is no need to provide evidence of any expenses incurred. If approved by the tax administration your employer can pay you 30% of your wages, including the allowance, free of tax.
If you are eligible for the 30% tax facility, you may also opt for partial non-resident taxpayer status. In that case, you will be regarded as a non-resident taxpayer for part of your income tax liability. This may result in a tax advantage.
Another advantage of this facility is that you (and your family members) can exchange your non-EU driving license without having to do a Dutch driving test.
You will be eligible for this facility if you come from abroad and have specific expertise that is unavailable or scarce on the Dutch labour market. If you are in possession of a knowledge migrant statement and meet the income requirement, you also qualify. This statement is issued by the IND (Immigration and Naturalization Service). Supervisory directors of a Dutch firm are also entitled to the 30 % tax facility.
Other grounds to claim specific expertise could be: level of education, level of income, work experience abroad.
Application of the facility requires the permission of the Tax and Customs Administration. To this end, you can make a joint request with your employer.
Submitting a request for application of the 30% facility
In order to apply the 30% tax facility for incoming employees, you need the permission of the Tax and Customs Administration. To obtain this, you and your employer should submit the form 'Toepassing van de bewijsregel extraterritoriale kosten voor ingekomen werknemers - 30%-regeling' (Application of the rule of evidence for extraterritorial costs for incoming employees - 30% ruling). You can request this form by phoning the Tax Information Line Non-resident Tax Issues. Telephone number: 055-538 5385, from abroad 0031-55-538 5385
Partial non-resident taxpayer status
If you move to The Netherlands and you are eligible for the 30% tax facility for incoming employees, you may opt for partial non-resident taxpayer status. Partial non-resident taxpayer status entails that you will be regarded as a non-resident taxpayer for part of your income tax liability.
If you opt for partial non-resident taxpayer status, your taxable income from a substantial interest (Box 2) and your taxable income from savings and investments (Box 3) will, for income tax purposes, be determined in accordance with the rules applicable to non-resident taxpayers. In practice, this means that the amount subject to taxation in those boxes will be reduced. You will therefore pay less tax.
If you qualify for the 30% tax facility, you and your family members can exchange any foreign driving licence. To apply for the exchange of your driving licence under this rule, you will need to bring the following items to the municipal office desk for driving licences:
- A copy of the approval of the tax authorities that the 30% tax facility is applicable to you
- Your passport and/or residency permit
- Certificate of fitness
- Passport photograph in colour (check the requirements for passport photos here)
- Your valid foreign driving licence
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