30% Ruling under review

The tax-break for expats known as the 30% Ruling is being reviewed and is likely to be amended according to a leading tax expert.

Around 60,000 expats in the Netherlands currently receive this deal which gives them 30% of their salary tax free.

In this edition of the Here in Holland podcast host Andy Clark talks about the review of the ruling with tax advisor Robert Bosma from Broadstreet in Amsterdam.

Finance Ministry Initiated the Review

The review of the 30% Ruling has been initiated by the Finance Ministry and will be considered by the new cabinet once it is in place.

So who can get this deal anyway? You need to earn above €54,000 gross per year, be hired from outside the Netherlands and have lived more than 150 kilometres from the Dutch border at the time of hiring.

There are currently 60,000 people benefiting from this and the number if growing by seven percent per year according to the review.

30% Ruling Effective
“The report has shown that the 30% ruling is effective in attracting expat talent to the Netherlands,” says Bosma.

“So people shouldn’t be worried that it will be scrapped. Although some changes are probable,” 30% Tax-Break for Expats in the Netherlands Under Reviewadds the tax expert.

According to Bosma other countries around the Netherlands have comparable rulings so a complete stop is unlikely.

“The ruling might be brought back from eight years to five years – there are two reasons for this. First of all, about 80 % of people who get this ruling have actually left after five years and compared to other countries eight years is long.”

“The second thing that may happen is a cap, a maximum, so above a certain level – perhaps 100k or 150k then the rate may be lowered.”

It will take time though for changes to come in to effect. The new cabinet is still not in place and even when it is then it is difficult to say how high up the political agenda this issue will be.

So why the review now? According to Bosma the tax-break is reviewed from time to time and there is always a certainly level of political discussion as to the justifications for this sort of tax break.

Here in Holland is the podcast in English about life with the Dutch – it’s produced by Andy Clark  – contact him via hereinholland@gmail.com or Facebook – website – you can subscribe to get all the podcasts in via your iPhone podcast app or your Android app of choice.  Or follow on Soundcloud