According to a recent report produced on behalf of the Dutch finance industry and covered by DutchNews.nl, the 30% ruling paid to some of the highly skilled expats recruited in The Netherlands is too generous. Earlier in June 2017, the Dutch parliament voted in favour of a proposal by left-wing MPs to re-examine the 30% tax break given to expats that move to The Netherlands. Many contractors will know that the costs associated in moving to The Netherlands for work can be expensive. Many MP’s understand this but still feel that the benefits needs to be reassessed.
Who does the ruling apply to
As many as 60,000 individuals who claim the tax incentive, which effectively means they do not pay tax on the first 30% of their salary may be affected. To claim the ruling, expats must earn at least 37,000 Euros a year and must have lived at least 150 Kilometres from a border with The Netherlands. This means many Germans and Belgians are unable to take advantage of the ruling and the majority who take advantage of the ruling tend to be non-EU nationals.
According to various reports widely available online, the ruling cost the treasury 700 million Euro in lost tax income in 2014 and a national audit office recently published report on the ruling stated that the impact of the ruling has never been properly assessed. It is quite clear that the focus on the 30% ruling could lead to possible reforms.
How can WNIC help?
If you are currently working in The Netherlands and/or are thinking of taking a contract on, White November are on hand to discuss your personal requirements. Browse our website www.wnic.eu and contact one of our Relationship managers who will happily discuss your requirements.