Unexpected breakthrough in 30 percent ruling proposal

15th November 2011, Comments 0 comments

After firm criticism of the proposals to restrict the 30 percent regulation, the State Secretary of Finance has decided to bring down the minimum salary requirements for eligibility for the 30 percent ruling.

This decision was communicated in a letter to Parliament on 11 November 2011 and made public on 14 November. This news is encouraging for those falling into the salary (total remuneration) group of between EUR 50,000 and EUR 70,000. The news was also positive for promovendi--scientific researchers and young masters--who will continue to be eligible for the 30 percent ruling after 1 January 2012.  Both groups also need to be recruited from abroad and meet the new minimum 150 km from Dutch border criterion.

The current proposal now stands as follows:

1. No minimum salary criterion for scientific researchers and promovendi at universities and government subsidized research institutes;

2. A minimum salary criterion of EUR 38.007 (to be indexed - salary before application of the 30 percent regulation) for masters under 30 years;

3. A general minimum salary criterion of approximately EUR 50.000 (salary before application of the 30 percent regulation).

The above three relaxations of the proposal are comply with the current salary criteria in the Knowledge Migrant regulation (immigration law), however, they will cost and the government will search out some budgetary compensation when working out the details of the last points of the proposed amendments.

The measures still under discussion are diverse ways of creating a ceiling for the 30 percent tax-free reimbursement, and restriction of the tax free reimbursement of 30 percent to a lower percentage during the sixth to 10th years of application of the 30 percent ruling. Another variant could be restriction of the duration of the 30 percent ruling from 10 to eight years. Parliament will make these last decisions on Tuesday, 17 November 2011.


Frank de Bats/ Expatica

 Expatica will keep you posted.


Ask the experts your tax questions online

 Frank de Bats  and other tax experts are availalbe to answer your questions on Expatica's Ask the expert section under the Tax category.



0 Comments To This Article