Important Changes for Expats

As of 1 January 2012 the criteria for obtaining the 30% ruling have been changed. The changes can be summarized as follows.

1. Introduction border area;
2. Specific expertise will be based on fixed salary norm;
3. Adjustment rules relating to reduction applicable period;
4. Special rules for PhD student / PhD holder up to 30 years old;
5. Adjustment reference period.

Ad 1:
Introduction border area

Only cross border employees who live for at least 16 out of 24 months, before they start their employment activities in the Netherlands, outside 150 km of the Dutch border can apply for the 30% ruling. This rule is not applicable to PhD students / PhD holders who start their employment activities within one year after they obtained their doctorate and who lived in the Netherlands or within 150 km of the Dutch border during the time they were obtaining their doctorate.

Ad 2:
Fixed salary norm

Specific skills test will be based on a (fixed) salary norm only (€ 35,000 per year, excluding 30% remuneration). Nontaxable items will not be taken into account. This salary norm must be met for the entire period the 30% ruling is granted. As soon as an employee does not longer meet this norm, the 30% ruling will expire.

Ad 3:
Adjustment rules relating to reduction applicable period

Periods of early stay / employment during the last 25 years are deducted from the maximum application period. Especially Dutch employees are effected.

Ad 4:
PhD students / PhD holders and young professionals (masters) up to 30 years old

To PhD students / PhD holders and young professionals (masters) up to 30 years old, a different (fixed) salary norm applies (€ 26,605 per year, excluding the 30% remuneration). No salary norm applies to scientists and research workers at subsidized establishments.

Ad 5.
Reference period

The reference period will be reduced from 10 to 8 years.

Transitional rules
– Issued 30% decisions will be respected;
– If, on December 31, 2011, the 30% ruling is granted by the Dutch tax authorities for more than 5 years, the 30% ruling will remain applicable for the remaining period of time;
– If, on December 31, 2011, the 30% ruling is granted by the Dutch tax authorities for less than 5 years and the individual does not meet the new criteria, the 30% ruling will expire after 5 years;
– Expansion with regard to PhD students will (probably) apply as of January 1, 2012;
– The reduction of the application period only goes for situations in which, on December 31, 2011, the 30% ruling was not applied for yet. It is therefore only applicable to new situations.

Which individuals are no longer entitled to application of the 30% ruling?
Employees who, on January 1, 2012, have been granted the 30% ruling for less than 5 years; and
– who lived within the 150 km area before they were attracted from abroad; and / or
– who fulfilled the criteria regarding specific expertise and scarcity, but do not meet the new fixed salary norm.

Result: 30% ruling will expire after 5 years.

Please contact us if you have any questions!

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