30% ruling changes proposal

On Friday the 4th of November the State Secretary published the proposed tax law changes with respect to the 30% ruling.

The following articles stand out:
• The obligation to fulfil the 30% ruling requirements during the entire period it is granted.
• Prior to commencing Dutch employment you need to have lived at least two thirds of the last 24 months further than 150 km from the Dutch border;
• Periods of earlier stay in the Netherlands.

The obligation to fulfil the 30%-ruling requirements during the entire period it is granted.
Under the old regulation, only after 5 years could the tax authorities request someone to prove that they still fulfil the 30%-ruling requirements. It follows that the 30%-ruling was granted for at least 5 years.

Under the new law changes as soon as you do not fulfil anymore the requirements the 30% ruling isn’t applicable in the Dutch payroll anymore. It is not clear yet how this will work out in practice. Is the minimum salary requirement to be fulfilled on a monthly basis or on a yearly basis? Does the minimum salary for the Phd 30%-ruler have to be Eur 26,605 during the whole period granted and how will this hold in comparison to a regular 30% ruler?

150 km away from the Dutch Border
Prior to commencing Dutch employment you need to have lived at least two thirds of the last 24 months further than 150 km from the Dutch border. The proof of this must be delivered by you. Any details on how this proof can be given is not clear. How will this be treated if you were registered on a address within the 150 km but actually lived further than 150 km from the Dutch border?

Periods of earlier stay in the Netherlands
Periods of earlier stay in the Netherlands in the last 25 years before the commencement of employment in the Netherlands will be deducted from the maximum grant period of 10 years. The periods of earlier stay in the Netherlands will be rounded up by the month. For instance if30% ruling  you were in the Netherlands for two weeks in May and two weeks in June the total deduction period will be two months although you only remained in the Netherlands for a period of 4 weeks.

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