Decision: validity and review of the conditions
When you wish to apply the 30%-facility then you will first need to apply to us for a decision. You can apply for this decision by completing the 'Application Income tax and national insurance 30%-facility'. You can download the form 'Application Income tax and national insurance 30% facility 2023'.
Term of decision
Starting 1 January 2019, decisions for the application of the 30%-facility are valid for a term of a maximum of 5 years. For employees who entered your employment before 1 January 2019, a transitional arrangement is applicable (see below) for the period of the decision’s validity.
We deduct the following from this period:
- periods of stay or work in the Netherlands that began more than 25 years before the date of arrival in the Netherlands and ended less than 25 years before the date of arrival in the Netherlands
- periods of stay or work in the Netherlands in the 25 years before the date of arrival in the Netherlands
The following periods are not then taken into account:
- periods of a maximum of 20 days a year in which the employee worked in the Netherlands
- periods of a maximum of 6 weeks a year or a one-off consecutive period of a maximum of 3 months in which the employee was in the Netherlands for a holiday, family visit or other private reason.
- periods in which the employee worked or stayed outside the Netherlands but was still an employee pursuant to Netherlands law
The expiry date is stated in the decision issued by us. The 30%-facility lapses in any case on the last day of the wage period of the wage period in which the last day of work fell. When, for example, your employee's last day of work is on 15 February 2023 then you may – for one-month wage periods – continue to apply the 30%-facility to 31 March 2023 inclusive.
Transitional arrangement for employees who entered employment in the period from 1 January 2012 through 31 December 2018
Starting on 1 January 2019, the period of the 30%-facility has been reduced from a maximum of 8 to a maximum of 5 years. For employees who entered employment in the period between 1 January 2012 through 31 December 2018 and fall under the 30%-facility, a transitional arrangement has been put in place. Have you applied the 30%-facility to an employee for more than 5 years as of 1 January 2021? Then the facility will end on that date. Have you not applied the facility for 5 years as of 1 January 2021? Then the facility will continue until the maximum period of 5 years has elapsed.
Review of the income standard
During the term of the decision you must carry out reviews to assess whether your employee still complies with the income standard. When the wage in a given year falls below the indexed standard then the 30%-facility lapses with retroactive effect from 1 January of that year. You will then need to adjust your earlier returns. When the employment contract begins or ends during the course of a year then you will need to convert the wages into the annual wages. You may no longer apply the 30%-facility should the employee subsequently comply with the income standard again. In the case of lower wages due to parental leave, pregnancy leave, post-birth leave, extended post-birth leave, foster care leave and adoption leave, you start from the wages that the employee would receive without this leave.
Employees with a Master's degree
Academic employees who have achieved a Dutch master title or an equivalent title abroad, and who are governed by the reduced income standard must comply with the higher standard (in 2023 taxable annual wages of € 41.954 exclusive of the specific exemptions) from the month after the month in which they attain the age of 30.
See also 'Expertise requirement'.
Change of employer
The 30%-facility can, subject to certain conditions, remain applicable to an employee who changes employer during the term of the decision. In that case, the new employer together with the employee must submit a new request. That can be done with the form 'Application Income tax and national insurance 30% facility'. You can download the form 'Application Income tax and national insurance 30% facility 2023'.
When you post your employee to the Dutch division of your concern your employee may remain in your formal employment. When this is the case you can also, subject to certain conditions, apply the 30%-facility by, for example, including the employee in the payroll records of the Dutch division of the concern. More information can be obtained by calling the Tax Information Line.
Change within a related group of withholding agents
Employees who move to work at another independent division of the same enterprise which is a withholding agent, result in an additional administrative burden as the earlier period of employment is terminated and a new period of employment begins. When you wish to reduce the administrative burden you can apply to us for the designation of the collaborative venture as a related group of withholding agents.
When an employee changes employer within a related group of withholding agents then a decision for the applicability of the 30%-facility remains valid provided that the employee still meets the conditions governing the applicability of the facility.