Tue, 29 May 2012
| Index | Last | Var.(%) |
|---|---|---|
| BEL 20 | 2117.66 | -0.08 |
| DAX | 6323.19 | -0.26 |
| IBEX 30 | 6401.2 | -2.17 |
| CAC 40 | 3042.97 | -0.16 |
| FTSE 100 | 5356.34 | 0.09 |
| AEX | 292.76 | 0.00 |
| DJIA | 12454.83 | -0.60 |
| Nasdaq | 2837.53 | -0.07 |
| FTSE MIB | 13057.26 | -0.74 |
| TSX Composite | 11566.15 | -0.09 |
| ASX | 4120.2 | 0.96 |
| Hang seng | 18800.99 | 0.47 |
| Straits Times | 2787.22 | 0.52 |
| ISEQ 20 | 501.76 | 0.16 |
Text size
The Tweede Kamer has finalised the changes to the 30 percent ruling after amending the original proposal three times. Financial advisors Finsens clarify the implications for 2011 and 2012 applications.30 percent ruling granted on or after 1 January 2012
New conditions
To qualify for the 30 percent ruling, the following conditions have to be met:
- The employee is recruited from abroad;
- The employee did not reside within 150 kilometres from the Dutch border at the time of hiring.
- The employee's gross salary (inclusive of the tax free reimbursement under the 30 percent ruling) is at least EUR 50,000 per annum;
- The maximum duration of the 30 percent ruling is eight years;
- Any period spent in the Netherlands over the last 25 years will be used to reduce the maximum duration of the 30 percent ruling.
PHD and masters graduates
PHD and masters graduates who are hired within a year of completing their studies will benefit from a relaxation of rules for this group:
- The minimum salary requirement is EUR 38,007 gross (inclusive of the net reimbursement under the 30 percent ruling;
- In the case of the PhD being completed in the Netherlands, the requirement of "being recruited from abroad" will not have to be met.
Scientific researchers
There will be no minimum required salary for scientific researchers who are employed by a university and/or a research institution that is subsidized by the government.
Scarcity on the labour market
The requirement regarding scarcity on the labour market, which is an important criterion under the ruling valid until the end of 2011, will be deemed to be met if the minimum salary requirement is met. The ministry of finance indicated, however, that for sectors where every candidate meets the minimum salary requirement, the scarcity test will still be applied.
30 percent ruling granted before or on 31 December 2011
We can deduce that a request for the 30 percent ruling made in 2012, with retroactive granting back to 2011 would still fall under the 2011 rules. This is the case if the start date of the employment is in 2011, and the request is filed within four months after the start date of the employment.
However, in case of switching jobs, a new 30 percent ruling application needs to be submitted. The new requirements will then apply.
60 months check may influence eligibility
Under the current regulations, the ruling is granted for a period of 120 months (10 years).The maximum duration of 10 years will still be valid for the "old" rulings. However, the first 60 months are fixed, but as of year six, the tax office has the possibility to check if the requirements of the ruling are still met by the employee.
This 60-month check will still be applicable under the new regulations.
For those who have a 30 percent ruling granted before 2012 and haven't yet reached the 60-month period, the tax office can check after this period that the requirements under the new rules are met.
This means:
The 25 years requirement will however not be used when checking eligibility after five years.
For those who have already had the ruling for more than 60 months on 1 January 2012, the new tests on salary and distance will not have any consequences, even in the case of a job switch.
Source: Finsens Financial advisers
Does this mean if you switch jobs and you already have the 30% ruling for 10 years and the new rules apply like the check for 50k etc. that the duration of the 30% ruling will drop to 8 years, so if you switch jobs you will lose 2 years?
according to the above, that appears to be case.
""However, in case of switching jobs, a new 30 percent ruling application needs to be submitted. The new requirements will then apply.""
so you really need to change jobs for the right reasons since it could end up costing you a lot of money over the 10 yrs!
Of course, this could be challenged but given that the dovernment is trying to find ways to recover money, I don't think anyone will win
Is the 30% ruling valid for Masters degree holders (from dutch university), having recruited within 1 year with a gross salary of more than 38,007? Or is it only valid for PhD graduates?
So, what if you are hired from abroad, come to the Netherlands with the 0% ruling after 2012, lose your job and are hired by another company from within the Netherlands? Do you lose the 30% ruling because you are hired inside the Netherlands then? Many are only contracts for say, 1 year or something.
So, what if you are hired from abroad, come to the Netherlands with the 30% ruling after 2012, lose your job and are hired by another company from within the Netherlands? Do you lose the 30% ruling because you are hired inside the Netherlands then? Many are only contracts for say, 1 year or something.
I have been hired with a 1 year contract which will expire in may 2012. In the case that my current company will confirm me a permanent contract, am I going to lose the 30% ruling already granted this year?
So if you are an IT consultant and regularly swap roles - then the 30% will almost certainly drop from 10 to 8 years?
Nuts....
If you switch jobs while being resident in the nederlands, then you're not recruited from abroad as far as the new job is concerned. Does that mean switching jobs leads to losing 30% ruling?
Seems people will less switch jobs until 10 years have passed...
If you´d like clear answers to your questions from an expert, then put your question to one of our experts under the Tax category on Expatica Ask the Expert. Robert Bosma is the contact from Finsens.
http://www.expatica.com/nl/ask_expert.html
In the explanation to the text of the grandfatherclauses of the "old" 30% allowance ruling, the State Secretary of Finance clearly states that in case somebody who has had the ruling prior to January 1, 2012, changes jobs after January 1, 2012, the new employment is deemed to be a continuation of the former employment for the purpose of the grandfather clauses. Consequently if you have had the ruling for less than five years before January 1, 2012, you can continue the ruling for the first five years, regardless of the employer and without having to meet the new criteria. At the start of year 6, you will face the intermediate check. In order to pass it you must be originally recruited from outside the 150 kilometre radius from the dutch border and you must mee the than applicable salarycriterion. If you fail to meet either criterion, you will not be alble to continue the ruling for year 6 to 10. If you do meet both criteria, you can continue the ruling without further checks for year 6 to 10. If you have already had the ruling for five years prior to January 1, 2012, you can automatically continue the ruling for the full 10 years, regardless of a change of employer and without any further intermediate checks.
Please note however that in case of a change of employer, no more than three months may lapse between the end of your former employment and the signature of your new employment contract. If this period exceeds three months, you are no longer eligible for the 30% allowance ruling, grandfather clause or not. For further questions, contact me at Luminous Tax Matters, Schiphol Airport
Does this mean if you switch jobs and you already have the 30% ruling for 10 years and the new rules apply like the check for 50k etc. that the duration of the 30% ruling will drop to 8 years, so if you switch jobs you will lose 2 years?
according to the above, that appears to be case.
""However, in case of switching jobs, a new 30 percent ruling application needs to be submitted. The new requirements will then apply.""
so you really need to change jobs for the right reasons since it could end up costing you a lot of money over the 10 yrs!
Of course, this could be challenged but given that the dovernment is trying to find ways to recover money, I don't think anyone will win
Is the 30% ruling valid for Masters degree holders (from dutch university), having recruited within 1 year with a gross salary of more than 38,007? Or is it only valid for PhD graduates?
So, what if you are hired from abroad, come to the Netherlands with the 0% ruling after 2012, lose your job and are hired by another company from within the Netherlands? Do you lose the 30% ruling because you are hired inside the Netherlands then? Many are only contracts for say, 1 year or something.
So, what if you are hired from abroad, come to the Netherlands with the 30% ruling after 2012, lose your job and are hired by another company from within the Netherlands? Do you lose the 30% ruling because you are hired inside the Netherlands then? Many are only contracts for say, 1 year or something.
I have been hired with a 1 year contract which will expire in may 2012. In the case that my current company will confirm me a permanent contract, am I going to lose the 30% ruling already granted this year?
So if you are an IT consultant and regularly swap roles - then the 30% will almost certainly drop from 10 to 8 years?
Nuts....
If you switch jobs while being resident in the nederlands, then you're not recruited from abroad as far as the new job is concerned. Does that mean switching jobs leads to losing 30% ruling?
Seems people will less switch jobs until 10 years have passed...
If you´d like clear answers to your questions from an expert, then put your question to one of our experts under the Tax category on Expatica Ask the Expert. Robert Bosma is the contact from Finsens.
http://www.expatica.com/nl/ask_expert.html
In the explanation to the text of the grandfatherclauses of the "old" 30% allowance ruling, the State Secretary of Finance clearly states that in case somebody who has had the ruling prior to January 1, 2012, changes jobs after January 1, 2012, the new employment is deemed to be a continuation of the former employment for the purpose of the grandfather clauses. Consequently if you have had the ruling for less than five years before January 1, 2012, you can continue the ruling for the first five years, regardless of the employer and without having to meet the new criteria. At the start of year 6, you will face the intermediate check. In order to pass it you must be originally recruited from outside the 150 kilometre radius from the dutch border and you must mee the than applicable salarycriterion. If you fail to meet either criterion, you will not be alble to continue the ruling for year 6 to 10. If you do meet both criteria, you can continue the ruling without further checks for year 6 to 10. If you have already had the ruling for five years prior to January 1, 2012, you can automatically continue the ruling for the full 10 years, regardless of a change of employer and without any further intermediate checks.
Please note however that in case of a change of employer, no more than three months may lapse between the end of your former employment and the signature of your new employment contract. If this period exceeds three months, you are no longer eligible for the 30% allowance ruling, grandfather clause or not. For further questions, contact me at Luminous Tax Matters, Schiphol Airport
A guide to telephone, internet and television along with utility services water, electricity and gas in the Netherlands.
Lost in the Dutch immigration system? Look no further than this guide compiled for our Survival Guide 2012.
Expatica offers a whistle-stop tour of life in the modern Netherlands.
The challenges and benefits of the maternity system in the Netherlands and how it differs to other countries.
Twitter
LinkedIn
Facebook
Google+
11
