The 30% ruling for inbound employees: It just keeps moving. Despite recent announced changes in the salary level and the fall in level of tax free percentage per 20 months period, do not forget that you may still qualify for the 30% ruling if you been have been living and working in the Netherlands for a while yet, but your employer has never applied for the 30% ruling.
An example: you used to live and work in your home country more than 150 km from the nearest border with the Netherlands and you accepted a job in the Netherlands as of 1 June 2023. Your starting salary was more than the minimum benchmark salary of the 30% ruling in 2023 (€ 41,954 for employees of 30 and older, € 30,891 under 30). Your employer did not know about the attractive 30% ruling or thought that you did not qualify for it. Can you still apply for the 30% ruling and if so, from which date will it be granted?
If your employer could have successfully applied for the 30% ruling back in 2023 but did not do so, you can apply for it together with your employer if you met the conditions of the 30% ruling on June 1, 2023 and thereafter. The tax office will grant the 30% ruling from the first day of the month following the month in which you apply for it. So if you apply in June 2024 successfully, it will be effective from 1 July 2024. For the maximum duration of 60 months, however the periods previously spent in the Netherlands will be deducted. Even if you changed jobs between 1 June 2023 and now, it may still be possible to successfully apply for the 30% ruling onwards. All relevant factors and personal circumstances play a role in this.
You may recall that the 30% ruling results in a – possibly substantial - higher net take home salary whereas it can also be in the benefit of your employer because of lower employee insurance contributions payable. The latter depends on the level of the taxable salary after the 30% tax free reimbursement has been accounted for.
Also under the introduced restrictions per January 1, 2024, it is worthwhile to examine if you are entitled to the 30% ruling. Seeking professional assistance to go ahead is recommended in order to be sure of success in advance. You better be warned early than react too late!
Author: Leo Oudshoorn – Wecountancy Expat Services