The provisional salary requirements for the 30% ruling as per 1 January 2018 are:
- Regular: € 37.296,00
- Lower criteria for masters younger than 30 years: € 28.350,00
Be aware, that these have not yet been confirmed by the Tax Authorities!
What does this mean?
Once confirmed by the Tax Authorities, 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. Another requirement is that the employee must have lived at least 150 kilometres from the Dutch border. The latter requirement effectively rules out employees living close to the border, such as 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). Detailed information about the 150 kilometer rule, can be found on this page.
Other recent developments
The request from the Dutch tax authorities for a valuation of the master degree increases significantly. In case your employee meets the lower salary criteria, we therefore advise to apply for this valuation upfront. Furthermore, we strongly advise to verify at least once a year if the employee still meets all requirements. The Tax Authorities may perform an annual check. If this is not the case, it may have severe consequences for both employer and employee.
Currently, the parliament is evaluating the ruling Some parties wish to end the ruling. And some have proposed to impose a certain amends to the ruling. Such as, a maximum amount, exclusion of bonuses, and a decrease in the duration (from 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. The next cabinet will decide if they will change the ruling.
* The fiscal income is calculated on the basis of the gross salary and the employer’s contribution for the health insurance act.