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What will change with regards to the 30% ruling from January 1, 2012?

Published on: Sat, Nov 19, 2011 at 9:35 PM | Viewed: 1886 times.
On November 17, 2011 the Lower House voted about the proposed changes in the 30% ruling. As stated in our blog we expressed our concerns about these changes. The changes have been revised, also after pressure from our side.

What will change?
  • A minimum salary requirement of € 35,000 per year (excluding the 30% allowance) will be introduced. This means that the required gross salary will be € 50,000. This requirement replaces the education and work experience check. Scientists and researchers working at universities and knowledge organizations will be exempted from the salary requirement. For young masters below the age of 30 the salary requirement will be € 26,000.
  • Incoming employees must have stayed outside the Netherlands in a period of 25 years before arrival in the Netherlands. This was 10 years.
  • Incoming employees must have lived more than 150 km from Dutch border before the work in the Netherlands commences.
To be able to financially support this adjustment the maximum term of the 30% ruling will be reduced from 10 to 8 years. This adjustment will only affect the new applications.

Additional comments have been made:
  • The text of the ruling will be adjusted as such that in case of change of employer it is relevant that an employment contract is signed within 3 months after the employee left the previous employer. Currently the ruling states that the work activities must be started within 3 months. The Supreme Court already ruled in the past that the idea behind the ruling is that a new job must be found within 3 months even though the work starts later than 3 months. So with this adjustment the text will be more in line with this decision from the Supreme Court.
  • The ruling should stop when the work activities end. Currently the ruling is also applicable on for example options which are paid out within the maximum term of 10 years but at a time when the employee already left the company. The Supreme Court is currently dealing with a similar case, we are waiting for the outcome.
  • Currently the ruling is guaranteed for the first 5 years of the employment contract. This will no longer be applicable from January 1, 2012 for new applications. From that date the ruling will be ended from the moment that the requirements are not met anymore. 
Transitional regulation

As mentioned in previous blogs the changes will not immediately affect the current granted rulings. The security of the first 5 years period will remain applicable for rulings which are granted with a start date before January 1, 2012. So if an employee has the ruling already for more than 5 years on January 1, 2012 he will fall under the old rules as long as he doesn’t change employer. If the period ends after January 1, 2012 the salary requirement becomes applicable and also the distance requirement. The changed requirement concerning the period of previous stay will only affect new applications.

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