An employer going bankrupt during your 30% ruling is a stressful situation that has direct consequences for your tax benefit and residence status in the Netherlands. As an international employee, you depend on both your employer and the continuity of your immigration and tax position. The good news is that there are concrete steps you can take to protect your position and maintain your benefits with a new employer.
This situation requires quick action on multiple fronts: securing important documents, protecting your residence permit, and correctly handling your tax affairs. We will guide you through all the essential steps you must take when your employer goes bankrupt while you are using the 30% ruling.
What Happens to Your 30% Ruling During Bankruptcy?
When your employer goes bankrupt, your 30% ruling stops immediately from the date your employment contract ends. This has direct consequences for your net salary and tax position. The Tax Authority treats the bankruptcy as a termination of the employment relationship, making the 30% ruling decision no longer applicable.
The most important thing to understand is that your tax benefit is linked to your specific employer and employment contract. Once this contract ends due to bankruptcy, your right to the tax benefit automatically expires. This means that any outstanding payments, such as back pay or vacation pay, will be fully taxed according to normal rates.
For your tax return, this means that your income from different periods of the year falls under different regulations. The portion of your salary you received before the bankruptcy still falls under the 30% ruling, while later income (from a new employer without the 30% ruling) is fully taxed.
Which Documents Do You Need from Your Bankrupt Employer?
Collecting the right documents is crucial before your employer definitively stops operating. Priority goes to the following essential documents:
- All pay slips from the current year, including specifications of the 30% ruling
- Your original employment contract with the written agreement about the 30% ruling
- The official decision from the Tax Authority for your 30% ruling
- Correspondence between your employer and the Tax Authority regarding your 30% ruling
- Annual statement or provisional annual statement up to the date of bankruptcy
Additionally, practical documents are also important for your future career and immigration procedures:
- Employer statement about your position and responsibilities
- Proof of your specific expertise and scarce skills
- Documentation about your salary level and employment conditions
- Copies of all immigration-related documents your employer has submitted
Contact HR or the trustee immediately once you hear about the bankruptcy. Often you have only limited time to obtain these documents before systems are shut down.
Steps to Maintain Your Residence Permit
Your residence permit is directly linked to your employment contract, so your employer’s bankruptcy also affects your immigration status. The IND must be informed about the situation within four weeks after termination of your employment contract.
Concrete actions you must take:
- Report the situation directly to the IND via MijnIND or by phone
- Submit a change notification for your residence permit
- Collect proof of the bankruptcy (such as the official bankruptcy declaration)
- Start looking for a new employer immediately
You typically have three months to find a new employer who meets the conditions for your type of residence permit. This period can sometimes be extended, but this is not guaranteed. It is essential to be proactive and not wait until you officially receive notice from the IND.
Keep in mind that your new employer must meet the same conditions as your previous employer, including being able to demonstrate that your specific expertise is scarce in the Dutch labor market.
Finding a New Employer While Maintaining the 30% Ruling
Finding a new employer who can continue your 30% ruling requires strategic planning. You have three months after termination of your previous job to find a new position that meets all conditions.
Important conditions for continuity of your 30% ruling:
| Condition | Requirement | Timing |
|---|---|---|
| Finding new job | Within 3 months after termination | Critical for maintaining ruling |
| Submitting application | Within 4 months after starting new job | For retroactive effect |
| Salary level | Minimum €46,660 (2025) or €35,468 (under 30 with master’s) | From first working day |
| Employer statement | Proof of scarce expertise | With new application |
Your new employer must again provide a written statement that your skills are scarce and that they have not succeeded in finding comparable expertise in the local market. This process can take time, so communicate early with potential employers about your 30% ruling status.
With a successful transition within the set deadlines, your 30% ruling can continue until the original end date of maximum five years from your first decision.
Adjusting Your Tax Return After Employer Bankruptcy
Your tax return becomes more complex when your employer goes bankrupt during the year. You must correctly report different income sources and tax regimes for the same tax year.
Specific points of attention for your return:
- Split your income by period: before and after the bankruptcy
- Use the correct forms for both 30% ruling income and regular income
- Keep all pay slips and annual statements from both employers
- Document any outstanding payments or reimbursements
For the part of the year you were under the 30% ruling, normal rules apply: 30% of your salary is exempt from tax. For the period after bankruptcy (until you possibly get a new 30% ruling), your full income is taxed according to standard rates.
If you find a new employer within the set deadlines who continues your 30% ruling, this can have retroactive effect to your first working day with the new employer. You must correctly process this in your tax return by indicating the right dates and amounts per period.
It is advisable to seek professional help when preparing your tax return in this complex scenario. A global mobility compliance audit can help ensure that all aspects of your tax and immigration position are correctly handled during this transition period. For personalized guidance through this challenging situation, contact our tax specialists who can provide expert assistance.
