Tax-free payment of personnel (30% - ruling) 

Employers and employees may be eligible for the 30% facility of the Dutch Tax and Customs Administration. This scheme was devised to facilitate companies to offer their knowledge worker a tax-free payment of at most 30% of the knowledge worker's salary (including the payment). This payment is intended for so-called extraterritorial expenses such as double accommodation expenses and additional expenses for living expenses in the Netherlands. Employers must apply for a ruling from the Dutch Tax and Customs Administration together with the employee to be able to use the 30% facility.

If an employee is eligible for the 30% facility, the employer may pay him or her a maximum of 30% of the wages as a tax-free allowance for extraterritorial expenses, without any further evidence requirements. This involves 30% of the wages from present employment including the allowance, which means 30/70 of the wages for payroll tax purposes.



The wages excluding the allowance amount to EUR 55,000. The tax-free allowance for extraterritorial expenses will then be 30/70 x EUR 55,000 = EUR 23,571. This is subject to the condition that the employee is not entitled to double tax relief in respect of those taxable wages. In other words, these wages must be fully taxable in the Netherlands.


Call or contact us if you want to learn more about the benefits of the 30%-ruling. We are more than happy to assist you in the application procedure.