Adjustments to the 30% ruling facility 

Posted in Blog, HR, News

As an international company employing employees from another country, you are probably familiar with the term extraterritorial costs. These are allowances for the stay in the Netherlands for the employees in question. To reimburse these costs, an employer can now choose from two options: reimburse the actual costs incurred or make use of the 30% facility. With the 30%-ruling, the employer may ‘, without further proof, give a maximum of 30% of the wages including the allowance untaxed as a specific exemption for the extraterritorial costs.’ 

The 30% ruling is under review and will most likely change as of 1 January 2024. In this article we would like to inform you about this change and its meaning in practice. 

The application of extraterritorial costs 

In multinational companies, national borders are not boundaries for employees. Many foreign employees are also employed by companies based in the Netherlands. These employees incur additional costs, such as housing, applying for personal papers and storage of household effects. With the 30% ruling, 30% of the salary can be paid tax-free. 

In recent years, this scheme has been scrutinized and it turned out that this scheme does not do justice to its full potential. During Prinsjesdag 2022, it was therefore decided to limit the 30% facility for higher incomes. In this way, the scheme can better match the costs actually incurred by employees. 

New interpretation of the 30% ruling 

With the new interpretation, the 30% ruling is linked to a maximum amount. It has been decided to link this to the WNT (Wet Normering Topinkomens) or the Balkende standard, in 2023 this amount will be 223,000 euros per year. For 2023, a maximum amount of EUR 66,900, or 30% of EUR 223,000, could therefore be paid untaxed in salary via the new 30% facility. 

In practice 

From 1 January 2023, the employer must make a choice in the first pay period between the 30% ruling or a reimbursement based on the actual costs. This choice applies throughout the year. The new 30% ruling can take effect from 1 January 2024. 

In practice, therefore, the other option can also be chosen: reimbursement of the actual costs. No maximum applies to this, but proof must be provided. 

Training allowances from the international school, which also fall under extraterritorial costs, are subject to a separate allowance, which means that they do not fall under this scheme. 


Arrangement to ensure a smooth transition to the new arrangement, a transitional arrangement has been proposed. The new 30% ruling applies from 1 January 2024 to employees who will make use of this scheme from 1 January 2023. 

For employees who already made use of this scheme before 1 January 2023, the transitional arrangement applies, whereby the new scheme will only take effect from 1 January 2026.  

The final details of the 30% facility have yet to be adopted. As can be read above, this can have an impact on your organization. 

Do you have questions about the 30% ruling and about working with a borderless team?
Feel free contact us, our advisors can look at the possibilities and opportunities together with you

Salary criteria for 30% ruling from 1st of January 2023