As an employer, when should I make the choice between applying 30% ruling or reimbursing ET expenses?
As of Jan. 1, 2023, the employer must make an annual choice whether to reimburse actual ET expenses or to use the 30% ruling. This choice will have to be made in the first payroll period in which the ET expenses are reimbursed, and applies to the entire calendar year (as long as the term […]
How does the 30/20/10% ruling work out for a discounted term?
In certain situations, there is no right to the maximum 60-month term of the 30% ruling, namely: The order is then issued not for 60 months, but for a shorter duration. The question then arises of how to deal with the 30/20/10% ruling. It has been confirmed by the Inland Revenue that cuts are being […]
If an employee changes employers, is the employee still covered by the transitional law?
If there is a change of employer (< 3 months), the transitional law continues to apply. If an employee is considered a new incoming employee due to longer interruption of working in the Netherlands (> 3 months), the transitional rule no longer applies.
What if the employee changes entities within concern? (SGI)
When changing employers, the 30% rule must be reapplied for by the new employer and employee (joint application). So in principle, this also applies when there is a change of employer within a group. To reduce administration red tape within concern, a request can be made to the tax authorities to designate the concern as […]
What if the 30% ruling was incorrectly issued by the Inland Revenue?
The Tax Office grants the 30% ruling by issuing a 30% ruling. This is an “appealable order. This means that it can be appealed if the decision was not issued correctly. Objections must be filed within 6 weeks of the date of the decision. Prior to 2024, there existed summary opportunities to get an issued […]
How should the capping to the WNT standard be incorporated into payroll?
For employees with salaries above the WNT standard, a capping must be applied in the payroll as of Jan. 1, 2024. This can be done in two ways, namely:
When does an employee fall under the transitional law?
Effective January 1, 2024, a number of important changes were made to the 30% rule. See article What are the changes to the 30% rule as of 2024? (link). Transitional rights have been created for existing cases. Capping Transitional rights were created at the end of 2022 for employees for whom the 30% rule had […]
Can the 30% ruling be retroactively adjusted in payroll?
Based on the “30% Adjustment Decision”, under certain conditions, the 30% ruling may be applied in the payroll tax return for past pay periods, in other words, applied retroactively. The text of the decision reads: The above assumptions only apply in case the employment agreements show that the withholding agent has granted the employee a […]
From when may the 30% ruling be applied in payroll? (at the start of the term during the month)
The 30% ruling may only be applied on gross wages paid during the term of the 30% ruling. Example: – If the 30% ruling begins on March 13, 2024 and wages are paid on March 23, 2024, the 30% ruling may be applied to wages from March 13, 2024 through March 31, 2024. – If […]
Until when may the 30% ruling be applied in payroll? (at the end of the term during the month)
The 30% ruling may only be applied on gross wages paid during the term of the 30% ruling. Example: – If the 30% ruling ends on March 13, 2024, and wages are paid on March 23, 2024, the 30% ruling may not be applied to the entire monthly wage. After all, there is no valid […]
