- The employer and the employee need to contractually agree on the 30% ruling in the contract of employment;
- The employer and the employee gather the information and documents needed for the filing of the application for the 30% ruling;
- The application is filed with the Dutch tax authorities ( needs to be done within 4 months of first arrival in the Netherlands);
- The Dutchtax authorities will make a formal descision on the application within 6-12 weeks;
- Once granted, the 30% ruling needs to be implemented in the salary administration to effectuate the benefit.
Addendum to contract of employment
The employment contract should be updated to include the following articles regarding the 30% ruling. If the contract has already been signed, then the articles can be stated on a separate letter that can be attached to the existing contract as an addendum.
Information needed for 30% application
- full details of the employer including company address and Dutch wage tax number
- full details of the employee, including address;
- the Dutch tax number so-called burgerservicenummer (BSN) or SoFi-nummer;
- copy passport of the employee;
- a copy of the residence permit and work permit (if applicable);
- the curriculum vitae of the employee;
- a copy of the employment contract, including the addendum;
- a power of attorney signed and dated by a representative of the employer;
- a power of attorney signed and dated by the employee;
Filing timeline for application 30% ruling
If granted, the 30% ruling will be effective as of the first of the month following the application. For example:
- If the application is filed on November 23, the ruling is effective as of December 1st.
- If the application is filed on April 1, then the ruling is effective as of May 1st.
However, if the application is filed within 4 months after arrival in the Netherlands, the 30% ruling will have retroactive effect to the arrival date of the employee. For example:
- The employee arrives in the Netherlands on February 1. The application is filed on May 13 (within the 4-months). If granted, the 30% ruling will be effective as of February 1.
- The employee arrives in the Netherlands on February 1. The application is filed on June 2nd (outside the 4-months). If granted, the 30% ruling will only be effective as of July 1.
Formal decision tax authorities on 30% ruling
The Dutch tax authorities will generally review the application within 6 to 12 weeks. They can either approve or deny the 30% ruling or they may request additional information:
If approved, the 30% can be applied through the Dutch payroll. The benefit will be calculated retroactively (if filed within the 4-months) through the payroll and refunded to you with your regular salary.
If the 30% ruling is denied, you have the right to file a letter of objection against the denial. This needs to be done within 6 weeks of the denial. The tax authorities will also indicate the grounds for denial. These grounds can be contested in the letter of objection by providing additional information. If the tax authorities also deny the 30% ruling based on the letter of objection, then you can have the matter appealed in court. The appeal needs to be filed within 6 weeks of the second denial.