30% Ruling for Employers

What the 30% ruling is, from your side

The 30% ruling (Expat Scheme) is a Dutch tax benefit that exempts up to 30% of an employee's gross salary from income tax. It's not a payroll subsidy: the employer doesn't pay anything to the Dutch Tax Authority for the benefit itself. Your role is to co-sign the application and confirm the employment facts.

The application is filed jointly. Both the employer and the employee sign the official form LH 598-1Z61FOL ENG. The employee (or HR on their behalf) fills in the self-service tool, which pre-fills the official form from the uploaded documents. After payment the completed form downloads in the browser. Employer and employee both sign it with a pen, and it is posted to the Belastingdienst.

Eligibility checklist from the employer side

The employee handles most criteria themselves (150 km rule, specific expertise, salary). On your side, the application needs:

• You are a Dutch withholding agent (inhoudingsplichtige). Standard Dutch BV, NV, branch, or registered employer. A foreign payroll setup or PEO usually disqualifies the employee.
• The employee was recruited from abroad, not already living in the Netherlands when hired. Internal transfers from a foreign group entity also qualify.
• You meet the salary threshold for the employee in 2026: more than €48,013 taxable salary after the 30% deduction (≈ €68,590 gross for the full 30%), or more than €36,497 if the employee is under 30 with a Master's degree (≈ €52,139 gross for the full 30%).

Do you need "erkend referent" status to apply?

No. Erkend referent (recognised sponsor) status is an IND immigration concept, not a Belastingdienst requirement for the 30% ruling. It matters for sponsoring a residence permit or a highly skilled migrant visa. The 30% ruling is a separate application to the Dutch Tax Authority, and any Dutch withholding agent can file one, recognised sponsor or not. If your HR team believes you cannot apply for the 30% ruling because the company lacks erkend referent status, that belief is incorrect: the two schemes are administered by different authorities and neither depends on the other.

What the employer provides

• The employer's name and address.
• The payroll tax number (loonheffingennummer) of the employing entity.
• A contact person for the Belastingdienst to reach if it has questions.
• The signed employment contract, enclosed as an attachment. The 4-month window runs from the first working day, not from the contract date.
• A written agreement with the employee to apply the Expat Scheme (question 8a of the form asks for this).

The pre-filled PDF already contains the employer section; you check it and sign with a pen. The Belastingdienst does not accept digitally signed forms.

The timeline and your role

When	What happens	Employer action
Within 4 months of the first working day	The employee completes the self-service tool and downloads the completed form	Supply the payroll tax number (loonheffingennummer) and check the employer section
Then	Both employer and employee sign the form with a pen	Post it to Belastingdienst/Kennis- en Expertisecentrum Buitenland, Postbus 2865, 6401 DJ Heerlen
Decision	Payroll applies the ruling from the first working day, if the request was made within 4 months	Pass the decision to payroll

Approval decisions are typically valid for the duration of the employment, capped at 60 months. The Dutch Tax Authority can request additional information; the employee responds to any requests.

Cost and invoicing

The fee is €12.10 incl. VAT, paid at checkout. The receipt can be expensed or reimbursed under your relocation policy.

Several hires at once

Each hire runs their own application through the same self-service tool; there is no separate framework agreement or batch pricing today. Tax advisors and expat firms handling 30% ruling applications across multiple clients can automate the application process via Lowkey, the advisor portal built for firms filing on behalf of employees.

Common edge cases on the employer side

The employee is starting before their work permit

The application can be filed once employment legally starts. If there's a delay between the signed contract and the actual start (work permit, visa, family relocation), the 4-month clock starts on the day work legally begins, which is sometimes later than the contract date.

Intra-group transfer from a foreign entity

An employee moving from the parent company in another country to the Dutch entity counts as "recruited from abroad" as long as they were resident outside the Netherlands when the offer was made. The 150 km rule still applies.

Salary just under the threshold

If gross salary is below €68,590 (or €52,139 for under-30 with a master's), the 30% exemption is reduced so the taxable salary stays just above the norm. The tool keeps it one cent above and shows the resulting percentage before you pay.