The period of the 30% ruling - I got it reduced with almost a year. Why?
Article ID: 202 | Last Updated: Mon, Jul 13, 2015 at 10:25 PM
I have a question about the period of 30% ruling. I got the 30% ruling since October 2011. In the application form I have filled in my business travel period before I started to work in holland. I thought that my total 30% ruling period should be 120 months, but they took out almost one year from 10 years. Is it correct?
I‘m still wondering, because the other colleagues didn‘t have any reduction of the period from 120 months even they have stayed in Holland in previous years.
This are (currently) the formal rules:
Should an entered employee have worked or stayed in the Netherlands prior to the start of employment, the term shall be reduced by the periods of prior employment and prior stay.
Periods of prior employment and prior stay that terminated more than 25 years before the term of employment shall not be taken into account. The entered employee will not have worked in the Netherlands if he worked in the country for a maximum of twenty days in every calendar year for the period of 25 years. The entered employee will not have stayed in the Netherlands if in every calendar year of the period of 25 years he did not stay in the Netherlands for a total of six weeks for holiday, family visit or other personal circumstances, with a one-off period not being taken into account of at most three consecutive months in the Netherlands for holiday, family visit or other personal circumstances.
For applications which were filed before January 1, 2012 the period which will be checked is only 10 years instead of 25 years. In your situation a period of 10 years is applicable.
It seems that your colleagues did not inform the tax authorities about their previous stay in the Netherlands, while you did. It is diffficult for the tax authorities to check periods of earlier stay if the employee never registered in the Netherlands during the stay. The tax authorities do check the registration system of the municipalities. But if someone stayed in a hotel and did not register the tax authorities won‘t see this. This means that your colleagues were awarded by the tax authorities for not providing the right information.
You can of course object against the decision to reduce the maximum period with almost a year. Will you be able to proof that you were in the Netherlands only for a couple of days? If you refer to the applications of your colleagues who got the ruling granted they may be faced with adjustments too which they won‘t appreciate.
Will the adjustment really affect you? This is only the case if you plan to work in the Netherlands longer than the period for which the ruling is granted.