30% Ruling

The 30% reimbursement ruling (better known as the 30% ruling) is a tax advantage for highly skilled migrants moving to the Netherlands. When the necessary conditions are met, the employer can grant a tax free allowance equivalent to 30% of the gross salary.

In the Netherlands this Tax ruling very popular with expats.

The Dutch Government has announced that the ruling will be adjusted. The 30% ruling used to be valid for a period of 8 years, however the Dutch government has decided to decrease the maximum years that the ruling can apply to 5 years. The new time limit will apply to new and existing beneficiaries of the tax break. This means that those who anticipated on the full 8 years see the term that they can use this Tax break being limited to 5 years.

Several campaigns have been launched by expats groups in the Netherlands to see if they can fight the government’s decision.

More information on the 30% ruling? Please contact us

Changes per January 1st 2017 in the Netherlands

Employers pay annual premiums to the Tax Authorities for permanent and temporary employees for the cost of long term disabled employees. The differentiated Whk (employment continuation funds) premium. The reintegration assistance is done by the UWV, as well as the long term benefit payments.