Correction 30% ruling in income tax return

The tax free allowance that can be provided to your employee to whom the 30% ruling has been granted, has to be included in the payroll.

Until now, the Dutch tax authorities denied requests to correct the 30%-ruling in the Dutch income tax return. However, recently a Dutch lower court decided that the 30%-ruling may also be corrected in the Dutch income tax return, provided that the employee meets the other conditions of the 30% ruling (a written (employment) agreement that the 30% will be applicable).

Especially for employers that have employees on their payroll with a 30%-ruling with a gross salary between EUR 35,770 and EUR 51.100 it can be difficult to include the tax free allowance under the 30%-ruling correctly since the salary may fluctuate during the year (e.g. bonus, overtime, part time etc.). This can cause multiple corrections in the payroll (additional costs, time pressure etc.). Although the Dutch tax authorities are saying that the 30%-ruling is a payroll facility and should be correctly included in the payroll, we now have an escape in case the payroll provider is nor willing or capable to make the final correction of the 30%-ruling in the payroll on time. We are then able to do a final correction in the income tax return.

Please note that this should only be done in exceptional cases.


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