Health-Holland

30% ruling The Netherlands is not only attractive for multinationals and investors, but also for expats who can take advantage of a special tax regime, the so-called 30% ruling. Under the ruling, the employer may give foreign workers a tax-free allowance of up to a maximum of 30% of his or her gross salary that is subject to payroll tax, for up to 60 months. The allowance, which is meant as compensation for the extra costs involved in living abroad, includes bonus payments and stock options but not pension payments. To qualify, the employee must have lived at a distance of more than 150 km from the Netherlands for more than two-thirds of the two-years period prior to commencement of work. The ruling can be applied for five years. This five-year period may be reduced if the expat has previously lived or worked in the Netherlands. The gross salary must be at least 37,296 euros (or 53,280 euros including the 30% reimbursement) or 28,350 euros (or 40,500 euros including reimbursement) for under-30s with a university degree (these minimums do not apply to scientific researchers, doctors in training or employees in the scientific education field). The ruling also requires that the employment contract must detail the taxable and non-taxable portions of the employee’s income. University of Groningen 80