09-11-2011
Proposed amendments of the 30%-ruling legislation published

The proposed amendments of the legislation of the 30%-ruling are published.

The 30%-ruling is a tax benefit available to a specific group of foreign employees temporarily working in the Netherlands or Dutch employees seconded abroad.

As of January 1 2012, the criterion specific experience or skills, the limited reduction rule and the definition of hired from abroad will be amended. Finally the rules for PhD students will be relaxed.

Specific experience or skills
The special skills or knowledge criterion will be determined by an income limit. As of 2012, only employees receiving a taxable wage (without the benefit of the tax-free allowance of 30%) of more than € 50,619 will qualify for this criteria. Moreover the following criteria will be assessed:

• level of education (minimum bachelor level)
• level of relevant work experience (at least two and a half years)
• level of remuneration in comparison with the level or remuneration in the country of origin.

An employee holding a middle or senior management position within an international group of companies, and having a minimum of two and a half years’ experience, who is seconded to the Netherlands as part of a job rotation is considered to have the requisite expertise.

Limited reduction rule
As of 2012, the limitation period of the ruling will be twenty-five years. If the employee has lived or worked in the Netherlands at any time during the twenty-five year period immediately preceding the application for the 30%-ruling this period will reduce the maximum term of the ruling.

Definition "hired from abroad"
As of 2012 employees, who have been living two third of the two year period preceding the application within 150 kilometers from the Dutch borders, are not entitled to the 30%-ruling.

PhD students
Young foreign PhD students who obtained their PhD degree in the Netherlands or within 150 kilometers from the Dutch borders are considered to be hired from abroad, even if they are living in the Netherlands at the time of hiring. The level of remuneration needed for the criterion "specific experience or skills” will be € 26,605 (without the benefit of the tax-free allowance of 30%).

The question is whether above is EU proof.

For more information, please contact Chris van Wijngaarden (chris.vanwijngaarden@vmwtaxand.nl) or Maarten Krikke (maarten.krikke@vmwtaxand.nl), telephone number +31 (0)20 301 66 33.