Tax Benefits
Benefit Calculated
When granted, the employer is allowed to pay a maximum of 30% of the agreed compensation package to the employee as a tax free allowance for up to 5 years. This benefit can be calculated as follows:
Example:
Annually | Monthly | |
| Without 30% ruling | ||
| Agreed package | 100,000 | 8,333 |
| Taxable wage | 100,000 | 8,333 |
| Less: wage tax | 45,000 - | 3,750 - |
| Net wage | 55,000 | 4,583 |
| Effective tax rate | 45% | |
| With 30% ruling | ||
| Agreed package | 100,000 | 8,333 |
| Less: tax free allowance | 30,000 - | 2,500 - |
| Taxable wage | 70,000 | 5,833 |
| Less: wage tax | 29,400 - | 2,450 - |
| Net wage | 40,000 | 3,383 |
| Add back: tax free allowance | 30,000 + | 2,500 + |
| Net compensation | 70,000 | 5,883 |
| Effective tax rate | 29,4% | |
| Tax savings | ||
| With 30% ruling | 70,000 | 5,883 |
| Less: without 30% ruling | 55,000 - | 4,583 - |
| Benefit | 15,000 | 1,250 |
Partial non-residency
Partial non-resident taxpayer:
Until December 31st, 2024 employees with the 30% ruling can choose to be treated as a partial non-resident taxpayer when filing their Dutch income tax return, despite living in the Netherlands. As a partial non-resident, the employee is in principle only subject to taxation in the Netherlands on Dutch sources of income. Dutch sources can be considered employment income, income derived from Dutch real estate property, or from a substantial share hold in a Dutch company. Consequently this partial non-resident tax status may result in a tax saving compared to Dutch tax residents as personal income from non-Dutch sources is not subject to Dutch income tax.
As of January 1st, 2025 this special status ceases to exist for employees with the 30%-ruling that started working in the Netherlands from January 1st, 2024 onward. This means that employees with the 30%-ruling will be considered Dutch tax residents and are required to report their worldwide income in the Netherlands in their Dutch income tax return.
Transitional Law
A transitional regime applies for employees for whom the 30% ruling was applied to their salary up to and including December 31st, 2023. This group of employees can still elect to be considered partial non-resident taxpayer up to and including December 31st, 2026.
