[1] Under certain conditions a life annuity is treated as a pension: premiums are deducted from the income, the benefits are taxed, and the scheme is not counted as asset in box 3.
The rate is 7.1% for e.g. wages and 5% for e.g. life annuities, coming on top of the tax percentages mentioned above.
Prior to 2024, there was a flat tax of 26.9% on income from a substantial business interest, usually meaning a (direct or indirect) shareholding of at least 5% in a private limited company (BV).
It applies to specialized foreign employees who are brought to the Netherlands because their skills are scarce in the Dutch marketplace.
[5] The 30 Percent Rule allows an employer to exempt from income tax up to 30% of the employee's annual remuneration (the "Basis") and used to be applicable for the first 10 years of their stay in the Netherlands, but is currently for the first five years of employment in the Netherlands Inkomstenbelasting Wet 2001.
The purpose of the 30 Percent Rule to compensate employees for the extra costs of their temporary stay in the Netherlands.
The effect is to make the Netherlands competitive in the international marketplace for skilled labour, since normal Dutch income tax rates are high (in comparison with other countries) and may discourage some employees from accepting assignments in the Netherlands.
However, there are consequences for possible future unemployment aid, tax deduction for a mortgage, pension contributions, and other benefits.
The Dutch tax authority allows for two options: In addition, the employer may provide a tax-free reimbursement for tuition fees when the employee's children attend an international school.
The Dutch income tax law does not, however, specify how the benefit of the 30% rule should be divided between the employee and the employer.
Shell) have stipulated in their general working conditions that the 30% rule income tax benefit is solely for the benefit of the company, arguing that salaries of their local workers would not be on par with their foreign work force.
The 30% rule income tax benefit is then divided between an employee and the employer up to the level as if the foreigner employer fictively paid the income tax on the entire salary and the surplus left to the company.
A similar rule also applies to compensate Dutch employees who are assigned to work in designated developing countries or to the Dutch nationals returning to the Netherlands after a substantial period of living abroad (10 years or longer).
Eligibility for the 30 percent rule is subject to a set of conditions, including: The applicable period was originally 10 years.
The Netherlands has established nearly 100 bilateral tax treaties with other countries to prevent the issue of double taxation.