How does 30% ruling in the Netherlands work.

From a taxation perspective, the salary agreed upon between the worker and company may be decreased by 30%. In return, the employee should obtain a 30% tax decrease as compensation for expenses. This is the most general way it is administered as it does not affect the salary load for the company. However, the employer is not required to pass on the benefit of the ruling to the worker. In practice the company can partly or completely take the advantage.