If you benefit from the 30% ruling, and you’re wondering about the implications of switching employers, the level of cooperation required from your employer, or what to do if your employer is reluctant to collaborate, you’ve come to the right place.
Let’s explore these questions and gain a clear understanding of how the Dutch employer factors into the 30% tax ruling and what it means for you.
By the end of this article, you’ll have valuable insights to navigate these scenarios with confidence.
Do I need my employer’s approval?
To begin, applying for the 30% tax ruling requires teamwork. It is important that both the employer and the employee agree to pursue this option together.
One significant reason for this joint effort is the potential impact benefits in the long run. Let’s explain this further: if you receive 30% of your income tax-free, 70% of your total pay is subject to taxes. As a result, your gross salary will be lower. This can have an impact on various things like the basis for your pension, the amount of deduction you can make for mortgage interest, and the eligibility for benefits such as unemployment benefits.
Because of these consequences, it is advisable for both the employer and the employee to apply for the ruling together, sign the necessary documents in blue ink (so not a E-signature), and either include a clause in the employment contract or create a separate written agreement acknowledging their understanding of the implications.
By collaborating and taking these steps, both parties demonstrate their awareness of the consequences and ensure a shared understanding of the situation.
What if my employer doesn’t want to work together?
To put it simply, if your employer refuses to cooperate, you won’t be able to apply for the 30% tax ruling, even though it might seem unfair. It’s important to remember that an employer is not obligated to provide you with this arrangement.
However, we suggest having a conversation with your employer to discuss the reasons behind their refusal.
It could be that the HR department lacks the resources to handle the administrative tasks involved. In such cases, MoveToNL specializes in assisting with scheme applications and can support your employer in managing the necessary paperwork. This might be a good opportunity to share our website with the friendly HR representative.
Can I change employers?
If you’re thinking about changing jobs while your application for the 30% tax ruling in the Netherlands is still in progress, there are important things to think about.
- Start a new application process: the 30% tax ruling is connected to your current employer, so if you switch jobs before the ruling is approved, you will usually need to start the application process again with your new employer.
- You meet the minimum salary requirements where you earned a minimum salary of €42,000 per year on a prorated basis.
- You sign a new labor contract within 3 months after the previous one ended.
I am a temporary employee. Am I still eligible?
Yes, it is possible under specific conditions. In simple terms, these conditions come into effect when the employee is classified as an “incoming employee.” This situation occurs when a foreign temporary employment agency includes your name on their recruitment list with the intention of hiring you for temporary work in the Netherlands.
If you want more information about this topic or need help with your 30% tax reduction as a temporary worker, please contact us for further assistance.
I am hired through an Employer of Record (EOR) or Payroll construction. Am I still eligible?
Certainly! It is indeed possible. Because you have a job in the Netherlands, you should be able to do it as long as you meet all the requirements.
Interested in learning about the requirements for applying for the 30% rule? Visit our Instagram for a checklist or check out our blog for more information.