Chesterfield (London) 
207 Old Marylebone Road
Tel: +44 (0) 203 771 3853
Fax: +44 (0) 203 771 3856

Dutch 30% Ruling

One of the most important concessions available to Foreign IT Contractors working in Holland is called the 30% Ruling. These concessions are available to you if you work in knowledge based environments and have particular skills that are scarce in the Dutch labour market.

Through Chesterfield Managements Umbrella Services contractors can be eligible to join our scheme and maximize their returns. If you qualify, you can gain a tax advantage, which results in a maximum effective tax rate of 36.4 percent by taking advantage of an allowance, which is calculated as being 30 times 100/70 of an employee’s gross wage.

Chesterfield Managements expert staff will be able to guide you through the conditions to be met to take advantage of this ruling and maximize your net income.

To take advantage of this benefit, both the contractor and the management company need to fulfill certain conditions.

The 30% Ruling – Conditions

To be eligible to take advantage of the 30% rule you must meet the following conditions:
  • Your employer must be liable to withhold Dutch payroll tax on your salary 
  • You must agree with your employer in writing that the 30% ruling is applicable
  • You must be an employee who has been transferred to Holland from abroad to a Dutch employer, or you must have been recruited abroad by a Dutch employer.
  • You must not have resided within 150 kilometers of the Dutch border for more than 6 months of the previous 24 prior to being hired.
  • Your taxable salary must be at least €35,000 per annum.
  • You must have expertise in your field of which there is a shortage in Holland.
And there are less strict rules in place for those who are under 30 years of age who hold a Masters or PhD degree:

The minimum salary requirement is reduced to €26,605
The requirement of being recruited from abroad does not apply if the PhD was completed in Holland and the employee is hired within one year of completing their studies

There is not a specific list of criteria, and eligibility takes into account age, salary, education and our experienced staff can guide you through the process.

The 30% Ruling – What income is counted as being eligible

Basic salary is the basis for the 30 percent ruling when it is being calculated as to the level of tax free allowance applicable. As long as they are classed as being part of severance payments, all other benefits, such as bonuses, holiday payments etc, also fall under the ruling. Pension payments fall under different regulations.

The 30% Ruling – How do I prove that there is a shortage of my skills and expertise in the Dutch labour Market?

Your level of qualifications and working expertise are usually sufficient to prove that there is a shortage of your areas of expertise in the local Dutch labour market. Additionally, it is up to your employer to make the case to apply the 30 percent ruling and not you, although you both must agree that is applicable in writing.

The 30% Ruling – Does it still apply if I change job?

Yes, with some conditions. Firstly you must ensure that if you move onto a new role, that you do so within three months of the termination of the contract to which the 30 percent ruling applied, and your new employer must agree that the 30 percent ruling does indeed apply in your new role.

The 30% Ruling – Can I appeal if my application is denied?

You can. You must submit a letter of objection within six weeks of being informed of the denial of your application. If this is subsequently rejected, you may then file a formal appeal.

To learn more contact us on our office telephone number 0044 (0)2070971385, request a call-back, or click here to email us .

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