A rejection of your 30% ruling can be a significant financial setback for international employees in the Netherlands. This tax benefit, which makes up to 30% of your salary tax-free, is not automatically granted and the Dutch Tax Authority imposes strict requirements. When your application is rejected, this does not mean that all hope is lost. There are various steps you can take to still qualify for this important tax advantage.
In this article, we explain why applications are rejected, what follow-up actions you can take, and how you can prevent future rejections. We also explore alternative tax benefits that are available for international employees in the Netherlands.
Why Is the 30% Ruling Rejected?
The most common reason for rejection is not meeting the salary requirement. For 2025, your annual salary must be at least €46,660 (70% of the gross salary). For employees under 30 years of age with a master’s degree, a lower threshold of €35,468 applies. These amounts are adjusted annually and are exclusive of the tax-free allowance.
A second common reason is the lack of evidence for specific expertise. Your employer must demonstrate that your skills are scarce in the Dutch labor market. This requires a written statement explaining why no comparable Dutch candidate could be found, including the number of applicants and the period the vacancy was open.
Incorrect or incomplete documentation also regularly leads to rejection. Essential documents are:
- Valid identity document (not a driver’s license)
- BSN number
- Employment contract or secondment letter
- Proof of residence outside the Netherlands in the 24 months prior to your employment
- Curriculum vitae with clear work experience
- Written agreement between you and your employer regarding the application of the ruling
Timing also plays a crucial role. You must have lived at least 16 months outside a radius of 150 kilometers from the Dutch border in the 24 months prior to your first day of work. Employees from the border region (Belgium, Luxembourg, parts of Germany, France, or the United Kingdom) do not qualify.
What Steps Can You Take After Rejection?
After a rejection, you have six weeks to file an objection with the Dutch Tax Authority. This objection must be submitted in writing and must clearly indicate why you disagree with the decision. Use this period to thoroughly analyze your file and gather any missing documentation.
Providing additional documentation can strengthen your objection. This could include:
- Further explanation of your specific expertise
- Additional proof of your residence abroad
- Clarification of your duties and responsibilities
- Additional statements from your employer about the scarcity of your skills
The Dutch Tax Authority has no fixed deadline to respond after receiving your objection, but in practice this usually takes several months. During this period, it is important to communicate proactively and answer any questions quickly.
A professional compliance audit of your global mobility processes can help identify and strengthen weak points in your application. This type of analysis not only evaluates your current situation but also provides strategic advice for optimizing future applications.
Appeal Procedure Against 30% Ruling Rejection
If your objection is also rejected, you can file an appeal with the court within six weeks. This is a formal procedure that involves more time and costs, but can be effective if you have a strong case.
For the appeal procedure, you need the following documents:
- The original rejection decision
- The decision on objection
- All relevant correspondence with the Dutch Tax Authority
- Supporting documentation for your case
- A reasoned appeal brief
The costs for an appeal procedure vary, but you should account for court fees and possible attorney costs. The expected processing time is usually 6 to 12 months, depending on the complexity of your case.
Success factors for an appeal procedure include new facts or documents that were not previously submitted, procedural errors by the Dutch Tax Authority, or a different interpretation of the regulations. It is advisable to seek legal assistance from specialists in tax law or global mobility.
Alternative Tax Benefits for International Employees
Even without the 30% ruling, there are other tax benefits available for expats in the Netherlands. Treaty benefits can prevent you from paying double taxation on income from your home country. The Netherlands has tax treaties with more than 90 countries.
Specific deductions for international employees include:
- Costs for Dutch language lessons
- Travel costs to your home country (under certain conditions)
- Moving costs related to your relocation to the Netherlands
- Double housing costs in the initial period
For knowledge migrants, additional facilities are available, such as the ability to exchange your foreign driver’s license without theory or practical exam. International school costs for your children can also sometimes be reimbursed by your employer as a tax-free allowance.
Box 2 and Box 3 benefits were previously available for 30% ruling beneficiaries, but this partial non-resident status will be abolished as of January 1, 2025. International employees will then have to pay the same box 2 and 3 taxes as regular Dutch residents.
Prevention: How Do You Prevent Rejection in Future Applications?
Careful preparation is essential for a successful application. Start by gathering all required documentation before submitting your application. Ensure that your employer can prepare a convincing statement about the scarcity of your expertise in the Dutch labor market.
The timing of your application is crucial. Submit your application within four months of the start of your employment to get retroactive application. For later applications, the ruling only takes effect from the first day of the month after approval.
Important preventive measures are:
- Check if your salary meets the minimum requirement for the relevant year
- Collect extensive proof of your residence outside the Netherlands
- Ensure a detailed CV that clearly shows your expertise
- Have your employer conduct a thorough market analysis
- Check that all documents are completely and correctly filled out
Professional guidance can make the difference between approval and rejection. Specialists in global mobility compliance can help you identify potential problems and optimize your application strategy. They can also help in preparing convincing arguments for your specific expertise and correctly interpreting the complex regulations.
A rejection of the 30% ruling is not the end of the world. By taking the right steps, filing a thorough objection, and preparing for future applications, you can significantly increase your chances. Don’t forget that there are also other tax benefits available that can soften the financial impact. The most important thing is to act proactively and seek professional help when necessary. For personalized assistance with your specific situation, contact our expert team.
