30% of ruling: please explain

Hello everyone,

Given that the minimum taxable requirement for 30% of ruling in 2018 is 37,298 euros. This turns to the gross amount before 30% ruling is around 52 000 euros per year.

Say I got 55k gross/year (incl. 8% holiday allowance already) - my monthly gross salary is around 4240 euros. But if I exclude the holiday allowance and count only gross salary per month * 12 it is around only 51 000 euros, which less than the requirement.

Am I eligible to apply for 30% of ruling? In fact, I wonder if 8% holiday allowance can be counted to the taxable amount or not.

Thank you very much.

Hi and welcome to the Forum.

From some notes I made from some earlier research I did for somebody; I'm not a financial advisor.

Parts of your potential salary that qualify under the 30% rule are:

the agreed monthly salary
holiday allowance

There was some other stuff, but I didn't understand it and seemed pretty obscure to me.

With regards to how much Holiday Pay; it's paid on your salary before anything else happens that may increase it (for example, the 30% ruling), so it's paid on 70% of your enhanced salary.

I'd recommend that you speak to your potential employer's HR department regarding this; they must have dealt with these issues in the past.  Further, if you have a complicated tax history, then speak to a financial advisor to make sure you make the best choices you can.

At the top of the page is a link to our Handy Tools section, within which is a business directory where businesses advertise their services, included in there are financial advisors; this link will take you straight there.

If you have any further specific questions, please come back to us, but I emphasise, as far as I'm aware, none of the Expat Team are financial advisors.

Hope this helps.

Expat Team

Hi Cynic,

So just make it simple: I can count 8% holiday allowance to the gross amount and apply for 30% of ruling?


That's my understanding.  You need to understand the origin of "holiday pay"; it's your money,  Historically, Holland used to take summer holidays in regional groups (known as the Bouwvakantie); to make sure that people had the money to go on holiday, an extra 13th month was invented as far as salary/payroll was concerned, so they took your annual salary, divided into 13, you got paid monthly 1/13 of your annual salary, then got the extra month in time for the summer holiday (there were variations on that theme).  More recently, as Christmas became more of a feature, some groups have opted to take the extra month in 2 parts 50/50, 1 summer, 1 Christmas.

Bouvakantie still goes on, although IMO, it's not such a big thing as more non-Dutch companies and people began to influence society.

From what I read, I agree with Cynic:
https://www.iamsterdam.com/en/living/ta … conditions

Basically, the ‘regular employment income' is the basis for calculating the 30% tax free reimbursement. There are special regulations regarding pension premiums, but the bonus, holiday allowance, benefit package and company car fall under the ruling. Severance payments do not fall under the 30% ruling definition of ‘regular employment income' and therefore do not qualify for the 30% tax free option. If an employee is made redundant, it is important that they have a breakdown of the redundancy package so it can be determined which part is payment of the bonus and outstanding holiday allowance and which part is the actual severance payment.