Main changes to the 30% ruling as per September 12, 2013
In September 2013 the Dutch Ministry of Finance issued a new Questions and Answers Decree with respect to the 30% ruling. Please find the most important changes and implications for the 30% ruling below:
I. If the employment ends, the 30%-ruling can be applied on payments in the wage tax period following the end date of the employment at the latest. For example if the employment ends March 10th, the 30%-ruling can in principle be applied on additional payments received until April 30th. Based on the new law, the 30%-ruling can no longer be applied on payments such as bonus or option income received after this 1 month timeframe.
II. The Ministry provided clarification on how to determine the minimum salary level to meet the condition of specific expertise of an employee in different situations. The minimum salary level is to be determined for the complete calendar year. For example, if the employee starts working parrt-time, his or her pro rata salary income should meet the minimum salary level for the complete calendar year. Also in case an employee reaches age of 30, the minimum salary level should be met as per that date. Consequently the his or her salary should be calculated to a full year salary to verify if the minimum salary level is met.
III. Expats living in the foreign border region (within a radius of 150 kilometre from the Dutch borders) are not eligible for the 30%-ruling. The actual extra-territorial costs can be paid tax free.
IV. The tax office will focus on the wording of the addendum to the employment contract and especially if the original agreed employment income will meet the minimum salary level.
V. If an employee continues to be employed by a foreign group company with an assignment letter and not on a Dutch employment contract, the foreign group company is to be considered withholding agent for Dutch income tax purposes. The withholding obligations from the foreign group company can however be transferred to the Dutch company. However as per January 1, 2013 a formal approval of this transfer needs to be obtained from the wage tax inspector for employments that started as of January 2013.