Under the 30% scheme, the following apply: expatriates are eligible for a tax-free payment of 30% from the remuneration they receive from their employer. The 30% scheme relates to the reimbursement of so-called extraterritorial expenses incurred by expats. These are the additional costs arising from the fact that they work in a country other than the one in which they live (or have lived). Of course, expats can have their actual extraterritorial expenses reimbursed tax-free, but as this is rather laborious and the Netherlands is keen to attract qualified expats, the flat-rate 30% scheme was introduced.
30% control
Under the scheme, up to 30% of the total remuneration that the expatriate receives from his or her employer may be paid free of income tax and social security contributions. The 30% scheme is a so-called targeted exemption. This does not reduce the employer’s discretionary allowance under the work-related expenses scheme.
Expertise
An important condition for the application of the 30% scheme is that the incoming employee (the expat) has a specific expertise, which is in short supply on the Dutch labour market. The Tax and Customs Administration assumes that this is the case when the annual salary of the incoming employee is at least € 36.889 (2015: €36,705). This figure refers to the salary excluding the allowance under the 30% scheme.
For employees under the age of 30 with a master’s degree, the salary benchmark is as follows: € 28.041 (2015: € 27.901).
No salary threshold applies in the context of the application of the 30% scheme to an employee who carries out scientific research at a research institution.
Request
The 30% scheme may be applied on the basis of a decision received from the Tax and Customs Administration for that purpose. The form for applying for that decision can be found here. This application must be submitted jointly by the employer and the expatriate within four months of the intended start date of the 30% scheme.
Naturally, VWGNijhof will be happy to provide you with information on the other terms and conditions of the 30% scheme, and we can handle applications for the 30% scheme.