Parliament backs changes to 30% ruling, set salary and time limits
MPs have voted in favour of changes to the 30% tax ruling for expats, bringing in a minimum salary and cutting the duration to eight years. However, the new regulations are less severe than originally planned. Expats must now earn a basic salary of €50,000 (including the tax break) to qualify, rather than the €70,000 originally planned. In addition, there will be no salary minimum for academic staff and researchers, and a new category of ‘young masters’ will be created for the under-30s who earn at least €38,000 (including the tax break). No change for most Ton Krol, of tax consultancy Blue Clue Tax says young people at the start of their career and those on a job rotation system within multinationals will be worst affected. ‘This will make it more difficult to attract new staff because talented people who are willing to move can work everywhere. Why work in the Netherlands if your net income can be twice as much somewhere else?’ he said. In order to pay for the shortfall i...