09-09-2011
Amendment in 30%-ruling as of January 1, 2012

The 30% ruling is a tax benefit available to a specific group of employees. Effectively it represents a tax-free allowance of 30% of the taxable salary, and is available to foreign employees temporarily working in the Netherlands or Dutch employees seconded abroad.

In order to qualify for the 30% ruling the employee must satisfy the following specific criteria:

• The employee must be hired or seconded from abroad.
• The employee has specific experience or skills not (readily) available on the Dutch labour market.

The 30%-ruling remains valid for ten years. However, if the employee has lived or worked in the Netherlands at any time during the ten-year period immediately preceding the application for the 30% ruling, this will reduce the maximum term of the ruling.

Change

The Dutch State Secretary for Finance proposed the following amendments in the 30%-ruling:

• for the criterion specific experience or skills only the level of remuneration will be assessed;
• for young PhD students the level of remuneration needed for the criterion specific experience or skills will be lower than for normal employees;
• the 10 years term for reduction of the ruling will be extended to 25 years;
• employees living within 150 kilometers from the Dutch boarders are not entitled to the 30%-ruling.

We will of course keep you informed. Should you have any queries or require more information, please contact Chris van Wijngaarden (chris.vanwijngaarden@vmwtaxand.nl) or Maarten Krikke (maarten.krikke@vmwtaxand.nl), telephone number +31 20 301 66 33.