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Taxes and tax returns

When employed in the Netherlands, you are obliged to pay national income taxes  

You are not required to file a tax return for this form of taxation: your employer will withhold the relevant amount from your salary and transfer it to the tax authorities. If you have a normal employment contract, this deduction will be relatively close to the amount you are required to pay in taxes for the year. The amount paid out to the Tax Authorities by your employer is roughly the same as the difference between your gross and net salary.

The Netherlands apply a progressive tax system, based on about four different tax brackets. This means the amount of tax deducted from your salary depends on how much you earn, and your specific tax bracket (the amount can vary between 33% and 52% of your gross salary, depending on your situation). 

tax envelope

For more information about the tax system in Netherlands, please visit the following websites:

  
Tax returns and allowances

You may be eligible for a tax return, or for one or more of several allowances that exist in the Netherlands, such as the home rent allowance, care allowance, or children’s allowance.


Questions?
if you have any questions about the general Tax system, please visit the HR front desk of the International office, located at Fe 2, entrance at Fe- 209, near Education Center. The front desk is open every workday from 8 am till 5 pm. Of course you can always send us a message at e-mail internationaloffice@erasmusmc.nl.
  
30% ruling for foreign employees
Foreign employees coming to work in the Netherlands incur extra expenses, known as extraterritorial expenses. Erasmus MC is allowed1 to grant these employees a tax free reimbursement. To be eligible you can submit expenses claims (with receipts), but reimbursement is also possible by exempting 30% of your wage from income tax; in this case you do not need to submit expenses claims. In this way, you will receive (as a rule) 30% of your wages as net salary and 70% as gross salary. This ruling is known as the 30% tax ruling. The Dutch tax authorities must approve your eligibility for this scheme.

If you have indicated that you wish to make use of this 30% tax ruling, and have submitted an application to the Dutch Tax and Customs Administration together with Erasmus MC, you implicitly agree to the way in which Erasmus MC processes the payroll and the consequences it may have for you: 

  • Reducing taxable salary
    The taxable salary (salary for income tax and social security contributions) is fixed monthly during the payroll processing. This taxable salary is reduced to a 70% taxable salary, which means that 30% of the salary is exempt from personal income tax.
      
  • Pension accrual
    This way of payroll processing will not reduce the pensionable income. You will accrue a full pension based on your pensionable income. Any adjustments for part time work will be taken into account.
      
  • Holiday allowance and end-of-year bonus
    Your entitlement to holiday allowance (VT) and end-of-year bonus (EJU), will continue to be based on the total gross salary and will therefore not be reduced.
      
  • Social security benefits
    By making use of this ruling, the salary (income subject to deduction of social security premiums), which is the basis for invalidity, unemployment and similar benefits, will also be reduced by 30% (as is the case for the taxable salary). Any benefits to be received will therefore be reduced.
      
  • CAO (collective agreement) a la carte - schemes
    If you make use of the 30% tax ruling, you cannot participate in any schemes related to terms of employment based on offsetting tax, as in your case this would lead to a taxable salary that is reduced by more than 30%; this is illegal. 

   
Further information / applications
More information on the 30% tax ruling, including the conditions, can be found at Tax Authority web pages on the 30% facility. If you wish to submit an application, you can always contact the International Office.

1 Erasmus MC is allowed to grant this reimbursement, but is not obliged to.