What has changed with regards to the 30% ruling from January 1, 2012?
Comment:: on January 2019 new changes became applicable. Below are the changes per January 1, 2012.
On November 17, 2011 the Lower House voted about the proposed changes in the 30% ruling. As stated in our blog (http://expataxbv.blogspot.com) we expressed our concerns about these changes. The changes have been revised, also after pressure from our side.
What has changed?
A minimum salary requirement of € 35,000 per year (excluding the 30% allowance) is introduced (the original proposals mentioned a higher required salary). This means that the required gross salary will be € 50,000. This requirement replaces the education and work experience check. Scientists and researchers working at universities and knowledge organizations will be exempted from the salary requirement. For young masters below the age of 30 the salary requirement is € 26,605. The required salary is adjusted every year based on the applicable index rates. You can find the up to date salary requirements on https://expatax.nl/30-percent-ruling.
Incoming employees must have stayed outside the Netherlands in a period of 25 years before arrival in the Netherlands. This was 10 years.
Incoming employees must have lived more than 150 km from Dutch border during at least 16 months of the 24 months prior to the date the work in the Netherlands commences.
To be able to financially support this adjustment the maximum term of the 30% ruling is reduced from 10 to 8 years. This adjustment only affects applications filed after January 1, 2012.
Edit: from 1 January 2019 the maximum term of the 30% ruling is further reduced to 5 years.
Additional comments have been made:
The text of the ruling is adjusted as such that in case of change of employer it is relevant that an employment contract is signed within 3 months after the employee left the previous employer. Before 2012 the ruling stated that the work activities must be started within 3 months. The Supreme Court already ruled in the past that the idea behind the ruling is that a new job must be found within 3 months even though the work starts later than 3 months. So with this adjustment the text will be more in line with this decision from the Supreme Court.
The ruling should stop when the work activities end. Before 2011 the ruling was also applicable on for example options which are paid out within the maximum term of 10 years but at a time when the employee already left the company. The Supreme Court has confirmed in 2011 that in this situation the 30% ruling was also applicable in the payments related to the options. We have to wait and see what the Supreme Court will decide under the new rules.
Until January 1, 2012 the ruling was guaranteed for the first 5 years of the employment contract. This is no longer applicable under the new rules. Currently the ruling will be ended from the moment that the requirements are not met anymore (see also below comments for existing situations).
As mentioned in previous blogs the changes will not immediately affect the current granted rulings. The security of the first 5 years period will remain applicable for rulings which are granted with a start date before January 1, 2012. So if an employee has the ruling already for more than 5 years on January 1, 2012 he will fall under the old rules as long as he doesn’t change employer. If the period ends after January 1, 2012 the salary requirement becomes applicable and also the distance requirement. The changed requirement concerning the period of previous stay will only affect new applications.