What's with this Dutch 30% rule?

[Jubber]

I loved it out there and I did keep about 70% of my money. I was there for a year and used a Dutch management company. I had no choice, the client (major Telecom) insisted ALL contractors used Dutch companies or no gig. Simple.

The 30% (I think it was 35% when I was there) 'rule' part took about two months to come through, but I got all the overpaid tax back. Without it you would pay at least 55% stoppages. Don't talk about it too much to the Dutch - they hate it (obviously) Just keep quiet and earn your dosh and have a good time. The Cloggies are great and they love Brits and hate Germans - perfect

[expat]

I loved it out there and I did keep about 70% of my money. I was there for a year and used a Dutch management company. I had no choice, the client (major Telecom) insisted ALL contractors used Dutch companies or no gig. Simple.

The 30% (I think it was 35% when I was there) 'rule' part took about two months to come through, but I got all the overpaid tax back. Without it you would pay at least 55% stoppages. Don't talk about it too much to the Dutch - they hate it (obviously) Just keep quiet and earn your dosh and have a good time. The Cloggies are great and they love Brits and hate Germans - perfect

I kept about 64%. At a guess this is consistent with my 30% rule compared to your 35% rule, with possibly different rates and therefore different marginal tax rates.

Remember that using this option precludes claiming expenses due to coming from outside NL, so you have to pay travel and accommodation with taxed money, which will reduce your effective retention rate.

[d000hg]

Can someone clarify exactly what is meant by "claiming expenses"? Does it mean claiming from the client, or claiming tax back on personal expenses.

Is there also anything to consider with VAT? Or since you'd be the one paid, rather than your Ltd, does this stop being an issue?

[Jubber]

Can someone clarify exactly what is meant by "claiming expenses"? Does it mean claiming from the client, or claiming tax back on personal expenses.

Is there also anything to consider with VAT? Or since you'd be the one paid, rather than your Ltd, does this stop being an issue?

I believe what expat is saying is that you cannot claim things like flights etc (I really can't remember) - but if you can get the client to pay for them - great ! fill your boots. I rented a house out there and at the time (not sure about now) I got tax relief on the rent I paid. For some reason because I had a house in Blighty, I got tax relief on the rent I paid in Holland.

I didn't have to worry about VAT as the Dutch management company took care of all that. It was like using an umbrella company basically, except it was a firm of accountants. Oh and by the way - they charged 350 smackers a month to do it all which I thought was a bit fierce but I was ripped to the tits most nights so didn't care. (a lot younger too)