Income tax for foreigners in the Netherlands
Posted in Netherlands forum 10 Dec 2008, 16:03
A friend of mine told me that income tax for foreigners in the Netherlands is limited to 30% for up to 10 years. However, I find this hard to believe as the Dutch income tax goes up to more than 50% from what I heard. This would mean that foreigners in Holland actually pay less income tax than the Dutch (which sounds a little insane). Does anyone have any further information on this?
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Income tax for foreigners in the Netherlands
posted by Jan Hogarth in Netherlands forum 12 Dec 2008, 11:35
Hi Ingrid, I found this info:
The 30 Percent Ruling is a personal income tax reduction for select employees in the Netherlands. It applies to specialized foreign employees who are brought to the Netherlands because their skills are scarce in the Dutch marketplace.
The purpose of the 30 Percent Ruling is to compensate employees for the extra costs of their temporary stay in the Netherlands, e.g. to make Holland competetive in the international marketplace for skilled labour, since normal Dutch income tax rates are so high that it is not financially rewarding to work in Holland. However, there are consequences for possible future unemploiment aid, tax deduction for a morgatge and other aids.
The 30 Percent Ruling allows an employer to pay an employee a tax-free allowance of up to 30 percent of the employee's total remuneration (the "Basis";) for the first 10 years of their stay in the Netherlands. In addition, the employer may provide a tax-free reimbursement of the fees paid for the employee's children to attend an international school.
A similar ruling also applies to compensate Dutch employees who are assigned to work in designated developing countries.
Note that it typically takes two to three months from the application for the ruling to be granted. The excess tax paid in the meantime is repaid to the applicant once the ruling is granted.
Regards
Jan -
Who shoul dcan be ask for tax free then....?
posted by Ria Hapsari in Netherlands forum 30 Mar 2011, 16:54
Hi Jan and Ingrid,
Please allow me to join in these discussion as i'm foreigner who starts to work in Netherlands after before i work in Singapore.
I still didn't know if is it possible for us as employee to ask employer to provide tax free as long as they working in Netherlands?. or Should we still pay the tax in 30% but we can ask refund tax after we finish or move to another country?.
Because regarding my working experience in Singapore last year, after 2 years i worked and live in Singapore than move to Netherlands, my company who refund all my tax to the Goverment and pay me back.
But yes, i always pay tax as long as i worked in Singapore and same for all expatriats over there.
Maybe anybody who can explain to me about them :).
Thank you
Regards,
Ria Hapsari