Posted on by E. Poerschke

Please be informed on the following recent changes with respect to the 30%-ruling:

 

    I.        Salary Criteria

In order to be eligible for the 30%-ruling an employee needs to be hired from abroad. Furthermore the employee should have specific skills which are scarce on the Dutch labor market. As of January 1, 2013 an employee is in principle deemed to have these specific skills if his taxable income exceeds EUR 35.770 excluding the 30%-cost allowance (i.e. EUR 51.100 including the maximum 30% cost allowance). For graduates with a master degree who are below the age of 30, their taxable income should exceed EUR 27.190 (i.e. EUR 38.843 including the maximum 30% cost allowance). These amounts can be indexed annually.

 

  II.        End of Employment

If the employment ends, the 30%-ruling can be applied on payments in the month following upon the end 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 received after this 1 month timeframe.

 

  1. III.        150 km border

Employees who lived within a radius of 150 kilometer from the Dutch border for more than 16 months in the 2 years prior to their employment in the Netherlands are currently  not eligible for the 30%-ruling. There have been employees opposing to this law change as it may be in contradiction with EU legislation. Currently two courts have reached a verdict in similar cases, one in favor of and one against the employee. Both cases await a decision of the tax appeal court. We will keep you informed on the progress of these cases.