The Dutch Free Allowance for Extraterritorial Costs

Here is an insight on the free allowance for extraterritorial costs or the 30% ruling in the Netherlands. More information is available here https://companyformationnetherlands.com/free-allowance-for-extraterritorial-costs-the-30-ruling/.

1. The Dutch Free
Allowance for
Extraterritorial Costs
The Dutch Free
Allowance for
Extraterritorial Costs
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A presentation brought to you by
CompanyFormationNetherlands.com

2. Definition
The Free Allowance for Extraterritorial
Costs is a tax exemption applicable to
foreign employees in the Netherlands.

3. Employee
Categories
The tax ruling applies to foreign
employees who:
relocate to the Netherlands;
are hired from other countries.

4. The Dutch Free Allowance for
Extraterritorial Costs implies
compensation for the costs of foreign
employees for a maximum period of 5
years.
Provisions

5. Compensation
Means
The compensation can be made by the
employer as follows:
a tax-free percentage of the salary;
reimbursement of extraterritorial
costs for work expenses.

6. Here are the conditions to be met by
employees to benefit from the 30% ruling:
they are highly qualified;
they have valid work contracts;
they were recruited directly by the
employer;
they earn more than the minimum
monthly wage.
Qualification Requirements

7. Foreign Companies
The 30% ruling also applies to Dutch branches and subsidiaries
of foreign companies.

8. Considering this tax allowance was
modified, transitional agreements are in
place for certain employees.
Transitional Agreements

9. Rely on Us
If you want to know more about the
benefits of setting up a company in
the Netherlands, you can rely on our
local specialists.

10. Thank You for Your Attention!
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www.companyformationnetherlands.com
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