30% Ruling Netherlands

**Hutch** · 22 October 2009, 12:12

Quite sure its like this ...

The 30% rule is, as you stated, valid for 10 years ... but I am fairly certain that it is applied only to the time you are paying Dutch tax .... so if you work with the 30% rule for 2 years, then leave NL for 5 years (for example) before returning ... you have only used 2 of the 10 years ... not 7 ... so when the 30% is re-applied .. you will still have a further 8 years of reduced taxation ....

I will check my facts and post again when I can say fer certain.

For those of you reading this thread who dont know what the 30% rule is .. it is basically, to compensate for the additional costs of traveling to NL to work, the Dutch tax authorities allow 30% of your taxable income to be paid to you tax free .... for 10 years ..

**Hutch** · 22 October 2009, 14:28

it works like this ...

As I mentioned in the previous post, the 30% ruling is valid for 10 years of tax payments in NL .. and if you leave NL before 10 contiguous years, the continuation process works like this ...

If you worked for a period in NL (say 2 years) and then leave, you should "de-register" with the local authorities, at which point the clock stops on your 30% ruling usage.

When you return to NL, your payroll company will re-apply for your 30% ruling, and you should still have 8 of the 10 years remaining.

If you did not de-register when you left before, thats not a major problem, you may be asked to prove that you were working outside of NL for the time inbetween. As part of the 30% application you (your payroll company) need to supply a full CV to the NL tax authorities. This might be enough to satisfy them that you were working elsewhere, but if not, they may ask for some further proof ... i.e contracts or tax returns ... but apparently, the CV is usually enough.

Just to be sure though ... when you do leave NL .. just inform either the tax office, your accountant, or the local gemente (council)

30% Ruling Netherlands