#Unreimbursed business expenses pro

Under the work-related costs scheme, the employer may reimburse expenses tax-free, up to a fixed percentage of the total fiscal wages of one's employees (the work-related costs budget). It will not be possible to change the decision during the calendar year. From 1 January 2023 onwards, a choice has to be made each year whether actual extra-territorial costs are to be reimbursed or if the 30% ruling will be applied.For employees who benefitted from the 30% ruling during 2022, the cap will apply as of 1 January 2026 instead of 1 January 2024.

#Unreimbursed business expenses pro

If an employee does not work in the Netherlands the entire year, the amount will be calculated pro rata. Based on the amount of the 2023 WNT norm (EUR 223,000), the tax-free remuneration amounts to EUR 66,900 per year. From that moment onwards, employers can reimburse a maximum of 30% of income up to the ‘WNT norm’, also known as the ‘Balkenende standard’, tax-free. From 1 January 2024 onwards, the application of the 30% ruling will be capped.The 30% ruling may only be applied if the employee is included in a Dutch wage tax administration. If not applied for within this time, the ruling, if granted, will not apply retroactively as of the beginning of the Dutch employment, but only as of the month following the month in which the application was filed. The 30% ruling must be applied for within four months of starting the Dutch employment. However, periods of prior stay in the Netherlands will, in principle, be deducted from this maximum duration period. The 30% ruling may, as of 2019, apply for a maximum period of 60 months.Hence, the 30% ruling can, in principle, not be applied on bonuses and equity income that becomes taxable after having left the Netherlands (regardless of whether the right to such benefit already vested during the Dutch employment period).

The 30% ruling cannot be applied on post-departure income (after the settlement period mentioned above). Furthermore, the 30% ruling lapses at the end of the next wage tax period following the wage tax period in which the Dutch employment/assignment was terminated (usually the end of the next month). The 30% ruling will end when the conditions are no longer met. Under the provisions of the 30% ruling, employees who are, based on facts and circumstances, considered as resident taxpayers may opt to be treated as partial non-residents.

No salary norm is applicable for scientific personnel and researchers at educational institutions and (subsidised) research facilities.įurthermore, the employee should have lived outside a 150 kilometre radius of the Dutch border during more than 2/3 of a 24-month period before taking up Dutch employment in order to qualify for the 30% ruling.įor university doctorates hired within a year after obtaining their PhD, a relaxation of the conditions was introduced.

EUR 42,559 including tax-free reimbursement of 30%) applies to individuals with a Master's degree (MSc) who are younger than 30 years of age.

A lower (gross) salary norm amounting to EUR 31,891 (i.e.

EUR 59,934 including tax-free reimbursement of 30%).

A general (gross) salary norm amounting to EUR 41,954 (i.e.

This is based upon the following salary norm (for 2023): To qualify for the 30% ruling, the foreign employee should have specific expertise that is not available or is scarce in the Dutch labour market.

If the actual extra-territorial costs are higher than the 30% reimbursement, the higher costs can be reimbursed tax-free.

If the 30% ruling is applied, the actual extra-territorial costs may not be reimbursed tax-free in addition to the 30% reimbursement. The 30% reimbursement is intended to cover all extra-territorial costs. Under this ruling, a tax-free reimbursement amounting to 30% of the income from active employment can be paid to the employee. If certain conditions are met, a foreign employee working in the Netherlands may be granted the so-called '30% ruling'. Costs that qualify as extra-territorial costs (not exhaustive) include: These so-called extra-territorial costs basically include all costs that the employee would not have incurred had he or she not been assigned to the Netherlands. The actual costs relating to an assignment to the Netherlands incurred by a foreign employee may be reimbursed tax-free provided that these expenses can be proven. Nonetheless, when filing a Dutch tax return, an individual may be able to claim a fixed annual amount for commuting by public transport relating to earning employment income. Business expenses may however (in part) qualify for a tax-free reimbursement by the employer, such as moving expenses, telephone expenses, commuter and business travel, school and tuition fees, etc. In the Netherlands, the number of deductions for tax purposes an individual can claim in one's PIT return are limited.