If it is up to the Dutch government, a restriction on the 30% ruling will be implemented as of 2024. On Budget Day (Prinsjesdag), the Tax Plan 2023 was sent to the Lower House (Tweede Kamer). In this Tax Plan, the government argues for a so-called Balkenende norm, i.e., the maximum salary of top officials that is set in the “Wet normering topinkomens” (WNT). This maximum salary for the WNT is € 223,000,- in 2023. The amount for 2024 is still unknown. The proposal is to apply the 30% rule only over that amount, or an untaxable allowance of € 66,900,- in 2023.
The government also proposes a transitional arrangement to implement the capping of the 30% rule. The limitation by capping will only take effect as of January 1, 2026, for highly skilled migrants/expats where the 30% rule was applied as of the last pay period of 2022.
No transitional arrangement will apply to foreign employees using the 30% rule as of January 1, 2023. The capping of the maximum amount will take effect for them as of January 1, 2024.
The 30% ruling remains a nice concession (tax-free allowance) for employees recruited from abroad and serves as compensation for the costs they incur to come and work in the Netherlands. Think of the extraterritorial costs: such as double housing costs, travel expenses or the costs of a language course. This regulation is designed to attract personnel with specific expertise, which is scarce in the Netherlands, from abroad.
Do you need help filing the 30% ruling? We will arrange this for you! Contact us at info@globalRcompass.nl or 085 – 064 7778.