30% ruling regime
In the night from 26 to 27 October 2023 the Dutch House of Representatives has adopted legislation proposing restrictions to the 30% ruling.
The 30% ruling is a beneficial Dutch tax regime available for expatriates. Based on this ruling, up to 30% of the Dutch remuneration package may be paid as a tax free compensation for certain additional costs for a maximum duration of 60 months.
The passed motion implies that in case the 30% ruling is granted, a reduced percentage of the Dutch salary may be paid as a tax free compensation over the following periods:
First 20 months: 30% of the Dutch salary
Next 20 months: 20% of the Dutch salary
Subsequent 20 months: 10% of the Dutch salary
Transitional legislation
The amendment includes transitional legislation for employees who have already been granted the 30% ruling and who already apply it in December 2023. For those employees, up to 30% of the Dutch remuneration package may still be paid as a tax free compensation for the full duration of the 30% ruling.
Please be aware that specific rules shall apply if an employee benefiting from the transitional legislation changes employer. Specific rules should in such a case be satisfied in order to assure the transitional regime remains available.
Elimination of possibility to elect for treatment as a partial non-Dutch tax resident for Dutch income tax purposes
On the basis of the current Dutch legislation, employees who have been granted a 30% ruling may opt for treatment as a partial non-Dutch tax resident for Dutch income tax purposes during the term of the 30% ruling.
The Dutch House of Representatives has adopted an amendment on the Tax Plan 2024 in which the possibility to opt for treatment as partial non-Dutch tax resident will be eliminated from Dutch tax law.
For employees who have already been granted the 30% ruling and who apply it in December 2023, the possibility to opt for treatment as partial non-Dutch tax resident should under certain conditions remain available up to and including 2026.
The above law changes are amendments to the Tax plan 2024. In case the Dutch Senate adopts the amended Tax Plan 2024 in December, the restriction to the 30% ruling shall enter info force as of 1st January 2024. The elimination of possibility to elect for treatment as a partial non-Dutch tax resident shall in principle enter into force as of 1st January 2025.
Advice
In case it is envisaged to relocate as an expat to the Netherlands, it could be tax beneficial to expedite this process and obtain the 30% ruling before the end of this calendar year.
Contact
In case you have any questions regarding the 30% ruling, please do not hesitate to contact Anke Boerefijn or Christian van Wijk.