Agreement between KPMG Meijburg & Co and the Dutch Revenue regarding a simplified request procedure for the 30% ruling 

Introduction
The Netherlands has a special tax regime for expatriates - the 30% ruling. In short, the 30% ruling provides for a reduction in taxable income equal to 30% of the employee’s remuneration. Under the 30% ruling the effective top income tax rate in the Netherlands is 36.4%, i.e. 70% of the top rate of 52% for individual taxpayers.
The request for the 30% ruling must be filed within four months of the date of the employee’s arrival in the Netherlands. If the request is filed after this period, the 30% ruling will only become effective as of the first day of the month subsequent to the month in which the request was filed. The employee and the employer must file a joint request with the Dutch Revenue’s Heerlen office. A pro forma request can be filed to secure the effective date of the 30% ruling.
In general, the 30% ruling can be applied for a period of 120 months. However, if after the initial 60-month period the employee no longer meets the conditions of the 30% ruling, it will no longer apply. During the second 60-month period, the Dutch Revenue can question whether the conditions of the 30% ruling are being met. In order to obtain certainty regarding the applicability of the 30% ruling for the remaining 60 months, we advise the employer and employee to voluntarily make a joint request for an extension after the end of the first 60-month period. If granted, this ensures the Dutch Revenue will not challenge the applicability of the ruling during this second half.
On average it takes the Dutch Revenue between 3 - 6 weeks to issue its decision.



The agreement with the Dutch Revenue
KPMG Meijburg & Co has concluded an agreement with the Dutch Revenue regarding a simplified application procedure for the 30% ruling. The agreement took effect on April 1, 2011. Under this agreement, KPMG Meijburg & Co may determine whether an employee is eligible for the ruling. A simplified request procedure will apply if the employee meets all the applicable conditions. KPMG Meijburg & Co will electronically inform the Dutch Revenue of this via an email account specifically set up by the Dutch Revenue for this purpose. The Dutch Revenue will issue the ruling within a few days. The Dutch Revenue does not review the request on its merits, but only carries out a limited internal check on former registrations as an employee or a resident of the Netherlands (as this can affect the ruling). The determination of eligibility is therefore solely the prerogative of KPMG Meijburg & Co.
The advantage of this agreement with the Dutch Revenue is that the employer and employee receive certainty regarding the application of the 30% ruling within a short space of time.
If, after reviewing the situation, doubts arise as to whether all the conditions of the ruling are being met, KPMG Meijburg & Co can file a full request with the Dutch Revenue, as was the case before the agreement with the Dutch Revenue was concluded. The determination of eligibility is then the responsibility of the Dutch Revenue.

Large projects or the establishment of new branch offices in the Netherlands
KPMG Meijburg & Co and the Dutch Revenue have also agreed to work together to ensure that large projects, i.e. involving more than circa 25 employees, are dealt with as efficiently as possible. The aim is to have advance consultation take place at an early stage. Similarly, if businesses intend to establish new (branch) offices in the Netherlands, then it is agreed that consultation on the applicability of the 30% ruling for those employees who are to be sent to the Netherlands, takes place at an early stage.