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Are you hiring an employee from abroad? The 30% ruling may be a relevant tax option. Subject to certain conditions, an employer may reimburse part of the employee’s salary tax-free to cover extraterritorial costs.

The 30% ruling, also referred to as the expat scheme, has specific conditions and must be applied carefully. Courdid helps employers assess eligibility, submit applications and process the ruling correctly. You can apply for the expat scheme through our online tool. Because Courdid submits a high volume of ongoing applications to the Dutch Tax Administration, we can facilitate faster applications. Our online tool automatically keeps you updated on the application.

How does the 30% ruling work?

The 30% ruling is intended for certain employees who come to the Netherlands from abroad to work. If the conditions are met, an employer may, subject to the applicable rules, reimburse part of the salary tax-free instead of reimbursing actual extraterritorial costs.

The applicable conditions and how the ruling can be used depend on the employee’s and employer’s circumstances. It is therefore important to assess eligibility carefully in advance.

Courdid can help with:
• assessing whether an employee qualifies
• applying for the 30% ruling
• processing the ruling through payroll
• the tax implications for employer and employee
• questions about extraterritorial costs
• changes in the employee’s circumstances

The 30% ruling as part of expat tax

The 30% ruling is a specific tax arrangement. For broader tax matters involving international employees, see our Expat Tax Services. This covers the overall tax position, international tax issues and other aspects of expat tax.

The 30% ruling and payroll

Submitting an application is only one part of the process. The ruling must then be correctly reflected in payroll. Courdid combines knowledge of the 30% ruling with specialist experience in international payroll.

Learn more about our expat payroll service.

Personal advice on the 30% ruling

Would you like to know whether your employee may qualify for the 30% ruling? Courdid will assess your situation and help you determine the next step. This gives you a clearer picture in advance and helps avoid unnecessary tax risks. Get in touch with us.