the Netherlands. The effect is to make the Netherlands competitive in the international marketplace for skilled labour, since normal Dutch income tax rates are high (in comparison with other countries) and may discourage some employees from accepting assignments in the Netherlands. However, there are consequences for possible future unemployment aid, tax deduction for a mortgage, pension contributions, and other benefits. The Dutch tax authority allows for two options: 30% tax-free is reimbursed based on registered receipts for extraterritorial costs (e.g. maintenance of an own house in the country of origin, travel expenses, relocation costs, language courses, long-distance telephone calls) the Dutch tax office can, upon an approved application of an employee, grant a 30% tax exemption on the employees remuneration. In addition, the employer may provide a tax-free reimbursement for tuition fees when the employee's children attend an international school. The Dutch income tax law does not, however, specify how the benefit of the 30% rule should be divided between the employee and the employer. Some employers (e.g. Shell) have stipulated in their general working conditions that the 30% rule income tax benefit is solely for the benefit of the company, arguing that salaries of their local workers would not be on par with their foreign work force. The 30% rule income tax benefit is then divided between an employee and the employer up to the level as if the foreigner employer fictively paid the income tax on the entire salary and the surplus left to the company. A similar rule also applies to compensate Dutch employees who are assigned to work in designated developing countries or to the Dutch nationals returning to the Netherlands after a substantial period of living abroad (10 years or longer). Note that the formal application typically takes two to three months. The excess tax paid in the meantime will be repaid to the applicant once the 30% tax exemption is granted. Eligibility for the 30 percent rule is subject to a set of conditions, including: The foreign employee was recruited outside the Netherlands or transferred from another country by their employer. The foreign employee possesses expertise absent or scarce in the Dutch labour market. Fulfilment of this condition is based upon gross salary, which shall exceed a given minimum amount. In 2019, the threshold gross salary was €37,743 (€53,919 including the tax-free 30% allowance). A lower requirement applies for employees under the age of