Content of the 30%-facility

Pursuant to the 30%-facility you may untaxed reimburse specific employees, without furnishing additional proof, a maximum of 30% of the wages inclusive of the reimbursement (in the form of a specific exemption, see Allowances, benefits in kind and provisions) for the extraterritorial costs. Instead, you may also give no more than 30/70 of the wages excluding the reimbursement as untaxed reimbursement. You will then need to take account of the expertise requirement. Here, wages are considered to be wages from present employment for which you file payroll tax returns.

When you issue reimbursements or provisions in excess of the maximum amount then the excess is wages for the purposes of payroll taxes.

When the actual costs incurred in reasonableness are in excess of 30/70 of the wages then you may also opt to issue the employee a tax free reimbursement of the actual costs. However, you will then need to furnish proof for the costs.

Changes from 2024

From 2024, the tax-free reimbursement is a maximum of €69.900. The reimbursement is also no longer a maximum of 30% of your employee’s salary over the entire term of the decision.

The tax-free reimbursement is a maximum of €69.900

Your employee receives the maximum tax-free reimbursement of €69.900 on a salary of €233.000 or higher, and if they make use of 30% facility for the entire year. If your employee only makes use of the 30% facility for part of the year, the maximum reimbursement is lower. Calculate the maximum reimbursement time proportional over the part of the year your employee makes use of the 30% facility.

Transition right applies to some employees. For them, the reduction of the maximum tax-free reimbursement enters into effect from 1 January 2026. This transition right applies if:

• you applied the 30% facility for the employee over the last wage period of 2022 and
• the employee actually enjoyed the 30% facility in that wage period, and
• the employee did not again become an incoming employee after a break after 31 December 2022. 
  For the purpose of this transition right, there is no ‘break’ if the employee finds a new employer within 3 months and, on joint request, the evidence rule applies for the remaining duration.

The maximum reimbursement is no longer 30% over the entire term

From 1 January 2024, your employee is only entitled to the maximum reimbursement of 30% of the salary for the first 20 months of the term of your decision. For the second 20 months, your employee is entitled to 20%, and for the third 20 months to 10%.

Transition right applies to some employees. For them, the reduction of the maximum tax-free reimbursement enters into effect from 1 January 2026. This transition right applies if:

• you applied the 30% facility for the employee over the last wage period of 2023 and
• the employee actually enjoyed the 30% facility in that wage period, and
• the employee did not again become an incoming employee after a break.
  For the purpose of this transition right, there is no ‘break’ if the employee finds a new employer within 3 months and, on joint request, the evidence rule applies for the remaining duration.

Other tax-free reimbursements and provisions

When you make use of the 30%-facility you may also issue the employee the following tax free reimbursements or provisions (specific exemption):

• the costs incurred in the removal, temporary storage and transfer of the household effects
• the costs incurred in the employee's visit to the Netherlands to become acquainted with the company
• the school fees for an international school or international department of a regular school
  This is an issue when:
  • the education programme at the relevant school or school department is based on a foreign system
  • the school or department is intended especially for children of seconded employees

More information about the 30%-facility can be obtained by calling the Tax Information Line.

Payroll records and payroll tax returns

Your administrative obligations for employees who make use of the 30%-facility are identical to those for your other employees. However, when you apply the 30%-facility you will need to take account of the reimbursements or provisions you have paid or provided alongside the 30%-facility as you are not permitted to reimburse or provide the actual extraterritorial costs incurred alongside the application of the 30%-facility.