2nd update 30% changes

Published: 23-11-2011

Tax plan 2012 amendments to the 30%-ruling.

The proposed 2012 tax amendments have been agreed upon by the Tweede Kamer. They now need to be approved by the Eerste Kamer. The law changes are applicable from January 2012.

The changes to the 30% ruling will be as follows:
• Maximum grant period of 8 years
• Minimum taxable salary of Eur 35.000 (excluding the 30%-ruling)
• Definition of incoming employee
• Periods of earlier residence in the Netherlands during the last 25 years are taken into account
• No minimum salary for researchers and scientists employed by subsidised research or educational institutions
• 30%-ruling available for PhD-students with a minimum taxable salary of Eur 26.605 (excluding 30%-ruling)

Please note that the requirement stating that expertise must be scarce or unavailable on the Dutch labour market still needs to be fulfilled.

Maximum grant period of 8 years
The maximum grant period will be 8 years instead of 10 years. This maximum grant period will come into effect in January 2012. i.e. 30%-rulings granted before January 2012 are not affected by this change.

Minimum taxable salary
In addition to the condition that specific expertise needs to be fulfilled through relevant work experience and/or level of education there will also be a minimum taxable salary of Eur 35.000 (Eur 50.000 inclusive of the 30% ruling) which must be met.

Definition of incoming employee
Prior to commencing Dutch employment one needs to have lived at least two thirds of the last 24 months further than 150 km from the Dutch border. The proof of this must be provided by the applicant. Any details on how this proof can be given is not clear.

Periods of earlier residence
Periods of earlier residence in the Netherlands in the last 25 years before the commencement of employment in the Netherlands will be deducted from the maximum grant period of 8 years. The periods of earlier residence in the Netherlands will be rounded up by the month. For instance if you were in the Netherlands for two weeks in April and two weeks in July the total deduction period will be two months although you only actually stayed in the Netherlands for a period of 4 weeks.

Researchers and scientists
Scientists and researchers who will be employed by subsidised researched institutions or educational institutions do not have to fulfil the minimum salary condition.

30%-ruling for PhD-students
PhD students who lived in the Netherlands prior to graduation can also apply for the 30% ruling. The period they stayed in the Netherlands for their study is not treated as prior residence. The PhD-student needs to be younger than 30 years and there is also a minimum salary of Eur 26,605 (Eur 38,007 including the 30%-ruling) applicable. The other conditions of the 30% rule still apply.

The above applies not only to PhD students who graduated in the Netherlands but also to those who graduated abroad. An additional requirement is that employment in the Netherlands begins within one year after graduating for the PhD.

Mid-term review
As from January 2012 the mid-term review is no longer applicable. This means that from January 2012 the conditions of the 30%-ruling constantly need to be fulfilled. As soon as one of the conditions is no longer fulfilled the 30%-ruling is no longer applicable.
 

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