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Managing director / shareholder and the 30% ruling

Owning the shares in the company where you work, makes you a managing director shareholder. At the same time you are the employee of the company. Being an employee opens for you the possibility to apply for the 30% ruling . How does that work?

If you live abroad, but you have the opportunity to work in the Netherlands, then you can incorporate a Dutch BV company or register your foreign limited liability company in the Netherlands. Either situation results in the same: your company has attracted you from abroad to work in the Netherlands. If other 30% ruling criteria are met as well, then you can use the 30% ruling for yourself.

30% ruling implies 30% of gross income not taxed

This implies that 30% of your gross salary is a tax free reimbursement of costs and a 70% taxable income. Please note that being the managing director creates the possibility that your employer is more willing to reimburse certain costs. Costs such as double housing, and travel costs to and from the home country. The reimbursement of these costs is in conflict with the 30% ruling. The 30% ruling already stands for these costs, hence if these are being reimbursed next to the 30% as well, this makes these costs taxable salary. Wage tax and social premiums are due over these reimbursements.

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