Dutch 30% Ruling update

Dutch 30% Ruling – Salary Thresholds in 2021

The Dutch 30% ruling is a tax advantage for employees moving to the Netherlands for a specific employment role. When the necessary conditions are met, the employer and employee can submit a joint request with the Dutch tax authorities to apply for the Dutch 30% ruling for a maximum duration of 5 years. Once the 30% ruling has been granted, the employer can process the tax-free allowance equal to maximum 30% of the gross salary in the Dutch payroll.

The 2021 salary requirements for the Dutch 30% ruling have been published by the Dutch authorities. The 2021 annual taxable income (after applying the 30% ruling) should be at least EUR 38.961 (EUR 38.347 in 2020). For employees younger than 30 years of age, with a master’s degree comparable to a Dutch master, the taxable income (after applying the 30% ruling) should be at least EUR 29.616 (EUR 29.149 in 2020). For scientific researchers there is no salary requirement.

End of transition period Dutch 30% Ruling – January 1st 2021

As of January 1st 2019 the maximum duration of the 30% ruling has been curtailed from 8 years to 5 years for existing and new 30% rulings. As the Dutch tax authorities did not revise the granted 30% ruling letters, it is highly advised to check the (new) duration of a granted 30% ruling issued after January 1st 2012.

Granted 30% rulings of employees who started working after January 1st 2019 will have a correct duration stating on their granted 30% ruling letter. It’s worth to review the 30% rulings with a start date before January 1st 2019.

Please contact Santa Fe to determine whether your employee is eligible for the Dutch 30% ruling and seek advice on how we can apply for the 30% ruling on behalf of your employee. You can also contact Santa Fe to perform a year-end check of the 2020 payroll, as the taxable salary requirement should be met every year.

Should you have any questions, please contact:

Claudia de Jager
Senior Immigration Specialist
Claudia.deJager@santaferelo.com

Brenda Jongman
Senior Immigration Specialist
Brenda.Jongman@santaferelo.com

 

To read more immigration updates, click here

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