2018 salary requirements for 30% ruling
The provisional salary criteria for the 30% ruling as per January 1, 2018 (not confirmed by the Tax Authorities yet!):
- Regular: € 37.296,00
- Lower criteria for masters younger than 30 years: € 28.350,00
What does this mean?
Once these amounts are confirmed by the Tax Authorities, this means that international employees that have the 30% ruling will have to earn a fiscal income* of at least € 37.296 per year. To be eligible one must have this minimum income and one must have lived at least 150 kilometres from the border with the Netherlands. This last requirement effectively rules out employees living close to the border in Germany, Luxembourg and Belgium. UK citizens are considered to live more than 150 kilometres from the Dutch border (even if this is not always the case).
* The fiscal income is calculated on the basis of the gross salary and the employer’s contribution for the health insurance act.
Other recent developments
The Dutch tax authorities more and more ask for a valuation of the master degree. In case the lower salary criteria is applicable for one of your employees, we advise to apply for this valuation upfront.
It is advisable to verify at least once a year if all requirements are still met, since the Tax Authorities can perform an annual check if the conditions for the 30% ruling are still met.
The ruling is being evaluated by the parliament. Some parties wish to end the ruling, some have proposed to impose a maximum amount, exclude bonuses and reduce the maximum 8 years to 6 years. The reason for the debate is that it is unclear what the benefits are for the tax regime in The Netherlands. It will be up to the next cabinet to decide if and what changes have to be made.