Law text of the 30% ruling
Section 4a. Levying of withholding (Chapter V of the Act): extraterritorial employees
1. In this chapter and the schemes based on the following definitions apply.
2. Meant by:
a extraterritorial employees received workers and posted workers;
b. incoming employee: recruited by an in another country, or sent to an employee within the meaning of Article 2 of the Act:
1 °. with a specific expertise that is scarce or absent on the Dutch labor market, and
2 °. in which more than two thirds of the period of 24 months at the start of employment in the Netherlands was ahead resident at a distance of more than 150 kilometers from the border of Netherlands excluding the territorial waters of the Netherlands and the exclusive economic zone of the Kingdom referred to in Article 1 of the Act establishing exclusive economic zone.
c. transferred employee: employee sent within the meaning of Article 2 of the Act, by withholding abroad with a view to:
1 °. placement as an official at a representation of the Kingdom of the Netherlands abroad (post);
2 °. employment as an officer, judicial officer or soldier on Aruba, Curaçao, Sint Maarten or public bodies Bonaire, Sint Eustatius and Saba;
3 °. employment as a soldier outside the Kingdom of the Netherlands;
4 °. employment in a ministerial regulation, in accordance with the Minister for Foreign Trade and Development, designated region;
5 °. practicing science or teaching.
d. duration: the period during which this section applies to an employee.
3. If the employment of an employee with a Doctorate (PhD) within one year after gaining this title, continue to assess whether this employee by an employer in another country in employment is recruited into consideration the period of stay in the context of the achievement of this title in the Netherlands or in the area within 150 kilometers of the border of Netherlands excluding the territorial waters of the Netherlands and the exclusive economic zone of the Kingdom, referred to in Article 1 of the Act establishing exclusive economic zone and the period after the promotion.
4. The requirement contained in the second paragraph, under b, under 2, shall not apply if the recruited by an in another country, or sent to an employee within the meaning of Article 2 of the law more than two thirds of the period of 24 months at the start of a previous employment in the Netherlands was ahead resident at a distance of more than 150 kilometers from the border of Netherlands excluding the territorial waters of the Netherlands and the exclusive economic zone of the Kingdom, referred to in Article 1 of the Act setting exclusive economic zone, and previous employment no earlier than eight years before the new employment has commenced.
5. An employee shall be considered as if he sent in a twelve month period at least 45 days for his work resides in one or more places to which he is sent. In determining whether this condition is to stays of less than 15 days shall not be taken into account and days on which the employee without interruption to the relevant places and travels back met - or would travel when using it for workers in general most common transport - classified as days of stay in those places. If the condition is met, can be considered for all other duty of at least 10 days to the relevant sites. Worker well as broadcast
6. Officials at a station are:
a placeable on officials of the Foreign Service of the Ministry of Foreign Affairs officials being appointed to anywhere in the world to operate;
b. have not been transferred officials of the Foreign Service who are temporarily added to a post;
c. officials from other ministries who are employed on a post;
d. military and civilian personnel of the Department of Defense placed together on a post flag and general officers who are posted abroad on international bars;
e. employees on the basis of an employment contract under civil law after assignment from the Netherlands perform work at a post.
7. Under practicing science or teaching purposes:
carry out a Netherlands research on the financial basis of:
1 °. a scholarship or grant from the Dutch Organisation for Scientific Research and the Foundation for Scientific Research of the tropics;
2 °. a NATO fellowship;
3 °. to designate similar grants, scholarships and fellowships by the Minister;
b. as the teacher or practitioner of science broadcast or invited by an institution such established abroad are traveling abroad, with the aim to give a setting in there education by an institution in the field of education and science to provide for such an institution. educational or science or scientific research
8. School fees are payments for children from the extraterritorial employee attending primary or secondary education to international schools and international departments of non-international schools, the amounts charged, with the exception of charges by the school according to its rates for education of room and board but including transport.
1. Allowances and provisions to extraterritorial employees of costs, to avoid expenses outside the country of origin, in respect of employees arriving at the joint request of the employee and the employer, respectively, in each case as remuneration for extraterritorial costs to (rule of evidence ):
a 30% of the base, the base is the sum of:
1 °. wages from current employment in respect of the residence outside the country of origin that is enjoyed during the term of the rule of evidence and agreed with applying Articles 20a, 20b, 26 and 26b of the Law of taxation, if the received or transferred employee is not entitled to prevent double taxation;
2 °. compensation for extraterritorial costs referred to in Article 31a, second paragraph, section E of the Act;
b. the amount of the school fees.
2. In the case of provisions, the valuation under Article 13 of the Act applies.
1. An employee has specific expertise if the wage specified in section 3.3.1 of the Income Tax Act 2001, income exceeds € 35,770.
2. Notwithstanding the first paragraph, an employee who has earned the title of master of an academic institution and who holds the age of 30 has not yet reached specific expertise if the wage specified in section 3.3.1 of the Income Tax Act 2001, accounting for more than € 27,190.
3. In departure from the first and second paragraph a worker is also specific expertise if the employee:
a in the context of scientific research or university education is employed at a research institution designated under Article 3.18b, parts a and b, of the Aliens Regulations 2000, or in the Netherlands
b. is employed as a doctor in training in the Netherlands to a specialist appointed by the Medical Specialists Registration Committee, the Social Medicine Registration Committee or the General Practice and Nursing Home Registration Committee training.
4. In assessing whether the specific expertise that a worker is not received or scarce on the Dutch labor market, in conjunction with the following factors into account, where relevant:
a level of education of the employee;
b. relevant experience for the position of the employee;
c. the remuneration level of the function in the Netherlands in relation to the remuneration level in the country of origin of the employee.
5. At the beginning of the calendar year, the amounts specified in the first and second paragraph by ministerial regulation changed in different amounts. These amounts are calculated by multiplying the changing table correction, amounts referred to in Article 10.2 of the Income Tax Act 2001, and then to make it deems necessary. Completion If, in the previous calendar year such rounding is applied, can be based on the unrounded amount. To change
6. A ministerial regulation may set further rules concerning the application of this Article.
1. For incoming employees the term of the rule of evidence up to eight years, commencing on the first day of employment by the employer and ending on the last day of the pay period following the pay period in which employment is terminated. Amounts
2. For expatriate workers is the term of the rule of evidence equal to the duration of the broadcast.
1. If an incoming employee obtains another during the course, remains at the joint request of the employee and the new rule of evidence during the remaining term of application, provided that the period between the end of the employment by the former and the establishment of the employment with the new withholding is no longer than three months.
2. Such a request must be made that the employee should be regarded as incoming employee. Demonstrate anew by the new
If the entered employee no longer possesses specific expertise that is scarce or absent on the Dutch labor market, the term shall be reduced until the time this situation occurs.
1. If the employee received prior to the start of employment as an incoming employee by the employer in the Netherlands is employed or stayed, the term shall be reduced by the periods of previous employment and prior stay.
2. Periods of previous employment and prior stay more than twenty-five years prior to the employment shall not be taken into account.
3. For the purposes of the first and second paragraph, the incoming employee not employed in the Netherlands if he has worked here. Maximum of 20 days in the country in each calendar year of the period of twenty-five years
4. For the purposes of the first and second paragraph, the incoming employee not staying in the Netherlands if total he no longer than six weeks in the Netherlands stayed for holiday, family visit or other personal circumstances, whereby in each calendar year of the period of twenty-five years the period of twenty-five years once a maximum period of three consecutive months in the Netherlands is not taken into account. because of vacation, family visit or other personal circumstances
5. For the purposes of the first and second paragraph shall be deemed to be a worker employed throughout the period that he recruited by an in another country, or sent to an employee within the meaning of Article 2 of the Law in the Netherlands .
If a request for application of the rule of evidence referred to in Article 10ei not made within four months of the start of employment as an incoming employee by the employer, the term shall be reduced by the period between the time when the incoming employee is employed by the withholding and the time when the decision referred to in Article 10ei, for the first time applies.
By reducing the term pursuant to this chapter, any period for which the term is reduced rounded up to whole calendar months.
1. A request for application or continued application of the rule of evidence regarding an incoming employee is made to the inspector. This decision on the request by eligible for objection.
2. If the request is made within four months after the start of employment as extraterritorial employee by the employer, does the decision back to the start of employment as extraterritorial employee. If the request is made later, the decision shall apply from the first day of the month following the month in which the request is made.
The withholding agent shall be deemed to be the same as the prior withholding without interruption of the employee withholding provided for the application of the provisions of this chapter in respect of an incoming employee:
a the withholding agent and without interruption prior withholding agent belonging to the same group of related withholding within the meaning of Article 27 of the Act, and
b. it is plausible that the employee would be considered an entered employee if Article 10ed would be applied again.
For the application of this rule, certain periods of stay or work during the preceding 25 years are neglected, if in every calendar year of the period of 25 years, the expat:
- did not work in the Netherlands for more than 20 days per year;
- did not stay in the Netherlands for a total of more than 6 weeks for holiday, family visit or other personal circumstances per year;
- is allowed a one-off period of 3 consecutive months of stay in the Netherlands for holiday, family visit or other personal circumstances for the entire 25 years.
For the lookback period, every period of reduction is rounded up to whole months. E.g. For spending 1 week in the Netherlands, one month will in principle be deducted from the 8-year period.
Please note that entitlement to the 30%-ruling ends at the moment that an expat no longer has specific expertise which is scarce/unavailable on the Dutch labour market. This means that if an employee does not meet the minimum salary criterium in a certain year, he/she in principle loses entitlement to the 30%-ruling for that whole year and can no longer apply the 30%-ruling from that moment on.