EIF contract terms / tax (especially Netherlands)

[Ian Lindsay <i.d.lindsay@DROPMEtnw.utwente.nl>]

Hi.

I have recently had my application for an EIF fellowship here in the 
Netherlands successfully evaluated and I am currently at the contract 
negotiation stage. I am a little confused about how the various 
components of the award should be paid and wonder if anyone 
(particularly with experience of such situations in the Netherlands) can 
given me some advice. At present, the host university are proposing the 
following:

1. The monthly living allowance has 42% taken by the university for 
their costs relating to welfare, pension, etc. The rest will be my gross 
salary (on the same pay scale point as I currently have).

2. Some of the mobility allowance will be paid as moving and housing 
allowances so they can be tax free. I will get 50% of the total mobility 
allowance tax free this way.

3. The remaining 50% of the mobility allowance will be paid as salary. 
This means the university will take 42% of it and the rest will be added 
to my gross salary so I will pay tax etc. on it.

4. Although the remaining 50% of the mobility allowance is to be treated 
financially as normal salary, this is to be paid as a "premium" rather 
than increasing my normal salary. In other words, they do not want to 
move me up the pay scale higher than my current point.

5. They will keep the travel allowance and career exploratory allowance 
and I must claim payments from these by producing receipts for eligible 
expenses.

6. They absolutely refuse to apply for the so-called 30% ruling "as a 
matter of policy."

My question is, does this sound to you like a fairly normal situation 
for such a fellowship in The Netherlands, or could I get a better deal? 
Can anyone advise me how other universities here deal with such payments?

I am particularly concerned about point 6. The Dutch "30% ruling" (a tax 
break for foreign "specialists") would seem an ideal way to pay the 
mobility, career and travel allowances directly to me without any tax 
liability. However, the university say they never apply for this 
facility. Is this true for other Dutch universities? Could I end up 
receiving much less of the allowances than a fellow at another 
institution simply because of this local policy?

Grateful for any advice.

Regards,

Ian Lindsay


--

Dr. Ian D. Lindsay
Laser Physics Group TNW/LF
University of Twente
Postbus 217
7500 AE Enschede
The Netherlands

Tel. +31-534-893972
Fax. +31-534-891102