Financial

The 30% facility (or 30% ruling) gives the employer the possibility to grant 30% of the salary tax-free. These costs do not have to be substantiated. The application of the 30% facility will result in a higher net income. The 30% ruling is the most important tax benefit for expats in the Netherlands. Once granted, it allows employers and employees to benefit a maximized NET PAYE. By using the 30% ruling, you will only have to pay tax over 70% of your gross salary. We will assist, apply and communicate with the Dutch tax authority on your behalf from start to finish.

Moving to another country is a costly adventure. These costs are considered as extraterritorial costs by the Dutch government.

The employer may decide to compensate you for the costs mentioned above. To avoid complicated administration issues the 30% facility (also known as the 30% ruling) can be used. The maximum duration to benefit from the 30% ruling is five years.

• There must be an employment contract.
• The employer has recruited the employee from a different country, or the employee has been sent from another country to the Dutch branch.
• The employee has, in the two years before the first working day in the Netherlands, lived for more than 16 months outside the Netherlands, at more than 150 km from the Dutch border. The employee has to provide proof to the tax office.
• The employee has specific expertise.
• The Tax and Customs Administration has issued a decision which states that you may apply the 30% facility.
• During the term of the 30% facility, an employee must receive an annual tax salary that at least corresponds to the established salary standard. This standard applies to both full-time and part-time employment. Upon commencement and termination within a calendar year, the 30% facility is calculated pro-rata.

Tax is withheld on your wages or benefits. This is automatically calculated by the salary software program when the hours are processed. Depending on your personal circumstances, you may be able to recover part of that tax. For example if you have children, study, or have not worked all year. Or if you lived in the Netherlands for only part of the year and you received wages or benefits.

Tax is withheld on your wages or benefits.This is automatically calculated by the salary software program when the hours are processed.

Depending on your personal circumstances, you may be able to recover part of that tax.For example if you have children, study, or have not worked all year, or if you lived in the Netherlands for only part of the year and you received wages or benefits.

If you think you might have paid too much taxes and want it to be checked, you can contact us, we can put you in touch with an external tax advisor who can have a look at this for you. You must pay the costs of that consultant yourself.

If you earn money or are working in the Netherlands then you need to pay tax on your income. You need a DigiD account to do your tax. You declare your income tax via your annual tax return (look on www.belastingdienst.nl for 'aangifte inkomstenbelasting') which can be done online or with the help of a Dutch tax advisor. If you are employed by a company then your income tax will be withheld from your salary by your employer, this is known as wage tax (which is contained within payroll tax). The first year there is a special income tax return for people who immigrated during this period (look on www.belastingdienst.nl for 'aangifte inkomstenbelasting voor belastingplichtigen die een deel van het jaar buiten Nederland wonen')

Payroll tax is tax and other contributions that are withheld from an employee’s salary by the employer, which saves the employee from having to pay them later as income tax. The payroll tax levy is made up of tax on your salary (wage tax or loonbelasting) and national insurance contributions for pensions, unemployment allowance and other Dutch benefits and allowances.

Your payroll tax is deducted from your salary every payslip. It's important for expats to keep the deduction in mind. There is a large difference between your gross salary (bruto salaris) which includes tax, and your net salary (netto salaris), after tax is deducted. Especially overtime hours which are taxed to a high rate initially when paid. However when you do your tax return this is calculated over the year and you get part of these tax back. When the year is over you get an annual statement via mail which you can use to do your taxes. Most of your tax return is already prefiled, the period to do this is after february and before may of the next year.