Does 30 Ruling Apply to Holiday Allowance?

The most common way for the Dutch 30% ruling to be applied is that the employee agrees to a salary reduction of 30% and in exchange, this percentage will be reimbursed as tax-free on the payslip. This can include holiday allowance, company car, and other benefits.

Does 30 ruling include holiday allowance?

Salary & The 30% ruling

The 30% reimbursement is calculated based on the agreed (gross) salary while different regulations apply for pension premiums. All other benefits (holiday allowances, bonus etc.) fall under the 30% ruling as long as they are ruled as severance payments.

Does 30% ruling apply to bonus?

The 30% ruling is applied to present income only (salary, bonus, etc), and ensures that up-to 30% of the gross income received is not taxed, treating it like a tax-free allowance. With the Netherlands having a top tax bracket of 51.75%, application of the 30% ruling provides a major tax advantage!