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30% ruling could be scrapped under Dutch government’s new budget

30% ruling could be scrapped under Dutch government’s new budget

Reports suggest that various tax benefits - including the 30% ruling for expats and internationals in the Netherlands - could be scrapped under the cabinet’s new Spring Memorandum (voorjaarsnota) as part of the government’s plan to make up for additional energy and defence expenditure.

Rutte could scrap 30% ruling for expats in the Netherlands

The Dutch government is currently undergoing the lengthy process of putting together a spring budget statement, dubbed the voorjaarsnota, which outlines the new cabinet’s finances and budget plan. Last week, Prime Minister Mark Rutte announced that, thanks to growing costs as a result of the energy crisis, the war in Ukraine, and rising inflation rates, the government would have to find an additional 10 to 15 billion euros. 

In order to do this, the coalition parties are looking into scrapping various tax benefits for Dutch businesses and entrepreneurs, and are considering introducing new taxes on wealth. In addition to these plans, however, NOS reports that ministers could scrap the 30% ruling - the tax benefit that means that 30 percent of a salary is tax-free. 

Spring Memorandum to be presented to Dutch parliament in June

Early on Friday morning, the Prime Minister announced that coalition talks about the voorjaarsnota were coming to an end for the time being, giving the parties the opportunity to discuss the plan with members of the opposition. The plan is for the discussion to be resumed in May before the final plan is presented to the House of Representatives (Tweede Kamer) in June. 

Rutte emphasised that an agreement was yet to be reached and refused to provide any details about the options that were currently on the table. “Many variants are still conceivable,” he told the Dutch press. Whatever the cabinet eventually decides, the voorjaarsnota will play a significant role in the government’s budget plans, which will be presented on Prinsjesdag in September.

Victoria Séveno

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Victoria Séveno

Victoria grew up in Amsterdam, before moving to the UK to study English and Related Literature at the University of York and completing her NCTJ course at the Press Association...

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Singara Velann 14:52 | 28 April 2022

@victoria, would these scrap will applies only for new incoming expats or to everone including who are already having 30% ruling, do you have any idea regarding this??

VictoriaSeveno2 16:14 | 28 April 2022

Hi Singara! I'm afraid that no official announcement has been made yet, and, as mentioned in the article, the Prime Minister hasn't provided any insight into what the final plan will look like. Discussions between the different parties are ongoing, so we'll have to wait and see a few weeks to find out what they decide.

MarcExpat2 15:17 | 11 May 2022

The tax breaks are there to attract 'desirable' professionals who are currently paying tens of thousands per year in tax. By definition, many of these 'desirables' have the luxury of choosing where they live and work. At 50% tax for most of the annual income, many will go elsewhere, or the companies employing them will have to increase the rates accordingly, punishing the Dutch industries. The government has to either completely abandon the long-term idea of attracting skilled workers, or go for the short-term gain of bumping up the tax. Yes, I guess many skilled workers will leave once their 30% rule expires after 5-years anyway, but if the Dutch companies are smart, the knowledge transfer to younger Dutch nationals would have been considerable during that time.

burcuesedoglu2 06:36 | 14 May 2022

It is very unfair that government even is discussing about this as while they are trying to fix their budget, they destroy the budgets of the families which are already planned tightly with mortgage plans, school and nursery monthly payments with little support from government and all those insurance payments and additional taxes like road tax. 30% ruling is ‘the carrot’ that many employers used and have been using to bring foreign intellectuals to fill their gaps with an advantaged salary range for the benefit of the employer and now as a result of this, the little families will pay for the burden - so unfair.

GöktürkTopuz2 12:35 | 17 May 2022

wow, comsider it well NL. Many of expats prefer NL due to the advantage of %30 ruling. Best for all