As a partner of the Expat Center Twente we can provide several services for expats and their employers.
Personal tax advice
We can help you with filing your tax return, applying for the 30% ruling, tax advice when you are buying a house, your employment conditions, and the financial consequences of living together.
Our knowledge of tax systems doesn’t stop at the Dutch border. We are also fully informed about international tax treaties and structures.
Income Tax Return
Tax returns need to be filled in before April 1st. In order to prepare them in time, we kindly ask you to provide the necessary documents before March 1st. If for any reason this is not possible, we will request an extension from the tax authorities. In the year after immigration into The Netherlands you may receive an invitation from the tax authorities to file your income tax return. For the tax return over the year of immigration and emigration other dates can apply. The tax return over these years has to be filled with a M-form.
We can provide a full service package to our clients. If you supply us with all the necessary documents, we will take it from there. We are happy to file the tax returns on your behalf.
30%-ruling and “partial non-resident status”
Under the 30%-ruling you can opt for the “partial non-residency status”. When you have the partial non-residency status, you are automatically considered to be a non-resident tax payer in Box 2 and Box 3, in spite of the fact that you are living in the Netherlands. For Box 1 income you are considered a resident tax payer. Therefore you do not pay income tax on assets in Box 2 and 3 (except for real estate in the Netherlands and substantial shareholding in a Dutch resident B.V.) and you are entitled to the partnership-ruling in Box 1. Opting for this status must be made in the yearly income tax return.
30%-ruling, basic rules
Almost every expat has heard of the 30% ruling and everybody wants to benefit from the 30% ruling, but there aren’t that many expats who know exactly what the 30% ruling means and how it works. Let’s go through the basic rules and consequences.
The 30%-reimbursement ruling (hereinafter: 30% ruling) is a tax facility for foreign employees working in the Netherlands. If a number of conditions are met, the employer is allowed to grant a tax free allowance amounting to 30% times 100 / 70 of the gross salary subject to Dutch payroll tax. This results in a maximum (effective) tax rate of approximately 36.4%. This tax free allowance is considered to be a compensation for expenses a foreign employee has for working outside his home country.
In order to be eligible for the 30%-ruling the following (cumulative) conditions have to be met:
- the employee has to work for an employer due to withholding Dutch wage tax;
- employer and employee have agreed in writing that the 30%-ruling is applicable;
- the employee has to be transferred from abroad to a Dutch employer or has to be recruited from abroad by a Dutch employer. The employer has to state by means of a letter of recommendation to the tax authorities the reason why he hired the employee and what makes the employee so special for the company. The employer may be asked to prove that he did not succeed in finding an employee with comparable expertise in the Netherlands. Furthermore, the employee must not have lived within 150 km of the Dutch border for 16 or more months out of the last 24 months prior to the start of the Dutch employment.
- the employee has to have specific experience or expertise which is not or scarcely available in the Netherlands;
- the gross annual salary is more than € 50,000, a lower salary of € 38,842 is applicable for those who have completed a Master’s degree and who are younger than 30 years.
We can apply for the 30%-ruling on an individual basis or look after all requests for a company.
If you have any questions, don't hesitate to contact me.