The 30% reimbursement ruling (the 30% facility) is an advantageous tax ruling specifically designed for foreign employees working in the Netherlands. When a number of conditions are met, an employer can grant a tax-free allowance amounting to circa 30% of the gross salary subject to Dutch payroll tax.
The 30% ruling results in a maximum (effective) tax rate of approximately 36.4% (instead of 52%). This tax-free allowance is considered compensation for expenses a foreign employee experiences when working outside his or her home country. The 30% facility applies to you if you were recruited outside of the Netherlands or seconded from a country other than the Netherlands to work in the Netherlands. Conditions including the following will apply to making use of the 30% facility (with effect from 1 January 2012):
For further and the most up-to-date information about the 30% facility please visit the website of the Dutch tax authorities (www.belastingdienst.nl).