30% Tax Facility

If you come to the Netherlands to work, you may face additional expenses: extraterritorial costs. 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. The facility is available solely for employees who have lived at a distance of more than 150 kilometres, in a straight line, from the Dutch boarder for more than 16 months in the 24-month period prior to their first working day in the Netherlands. The employees that have been working in the Netherlands for more than 4 months are not eligible to apply anymore. 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 driver's license without having to do a Dutch driving test.

 

Specific expertise

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 highly skilled migrant statement and meet the income requirement, you also qualify. This statement is issued by the IND. 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% Tax 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 Toepassing van de bewijsregel extraterritoriale kosten voor ingekomen werknemers - 30%-regeling form (Application of the rule of evidence for extraterritorial costs for incoming employees - 30% ruling). Request this form by phoning the Tax Information Line for Non-resident Tax Issues

 

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.

 

Driver's license

If you qualify for the 30% Tax Facility, you and your family members can exchange any foreign driver's license. To apply for the exchange of your driver's license 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 color;
  • Your valid foreign driver's license.

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