Netherlander Government has announced its plans on ‘30% Ruling’ measure, rule which permits to employers, who hire foreign workers, to access a fiscal incentive during five years. As it tries to compensate journey costs and an adaption to Netherlander’s lifestyle. Their intentions are to reduce gradually the percentage to a maximum of 27%. 

The ‘30% Ruling’ is based on 30% exemption of taxes over salary, always employees obey next requirements: 

  • Being hired by a company situated in the Netherlands 
  • High qualification/specialization: worker may have a specific professional experience 
  • Minimum wage: the fiscal benefit is applied to those people who earn more than €46.107. 

In a certain way, national government allows the country, among others, to attract qualified talent and improve payroll management. So, companies save from paying Social Security and employees get exemptions on taxes. The reform won’t be applied immediately, but it will develop in a gradual way from 1st January 2024 to 2027, establishing different measures (subjected to changes) for the previous and following 2024. 

  • Contracts before January 2024: minimum wage will be maintained during next years in €46.107 
  • Once has begun 2024: minimum salary is the same as said before until 2024 
  • From 2027, it will be €50.436 
  • As an exception, for those under-30 people who have a master’s degree will be benefited if they pass the limit of €38.388, although before it started with €35.048 

Moreover, since 2023 fiscal year, Netherlander institutions have been increasing the “Salary Cap” or maximum deductible salary from €233,000 to €246,000, thus increasing the maximum annual “Tax-free” amount from €69,900 to €73,800, providing a greater tax advantage until the end of the application period of this measure. 

Tax, accounting and payroll management in the Netherlands or another country can result difficult, so Auxadi offers these services to help you in your international expansion.

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Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.

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