State Secretary of Finance wants to improve 30% tax ruling


Letter 2011D31897

Following media reports about the use of the 30% tax ruling and the public attention that was paid to the ruling, the Standing Committee on Finance requested more information.

State Secretary of Finance informed the House in letter 2011D31897 that he intends to improve 30% tax ruling this year on four points.

Specific expertise

The condition that the expats must have a "specific expertise" will be simplified by minimum salary requirement.

Duration discount for former residents

Second, the discount of the duration will be extended. The 30% tax ruling is granted for a maximum duration of 10 years, which is reduced where the employee lived in the Netherlands in previous years. The period for this discount is extended from a period of 10 years to a period of 25 years. This adjustment affects all expats, including almost all Dutch citizens, whom have been away from the Netherlands for over 10 years and want to return to the Netherlands. They will no longer be entitled to the 30% tax ruling.

New: frontier workers

A third measure looks at workers living abroad but near the border (with a radius of 150 km from the Dutch border). They will no longer qualify for the 30% tax ruling.


Finally, the industry put forward to open the 30% tax ruling to for young PhD graduates. The salary requirement for this group of expats will be lower than standard for other expats. But there is another bottleneck for PhD graduates: the 30% tax ruling is not open to foreign PhD’s  who graduate in the Netherlands and want to continue working here. They are not recruited from abroad by their Dutch employer. As the State Secretary himself mentions this problem, we wonder whether he will relax this condition for this group of PhD graduates.

The new rules will be introduced will the Tax Plan 2012.


For the 30% tax ruling the requirement of specific expertise will be simplified by introducing a standard minimum salary requirement. Expats who previously resided in the Netherlands will have less access to the 30% tax ruling. PhD graduates will have easier access to the 30% rule.

Practical implications?

The question is whether this change ensures that people with great knowledge and a high salary will continue to work in the Netherlands if they cannot access the 30% tax ruling (any more) and their salary is taxed primarily at 52%. Certainly the 30% tax ruling will be clearer and more targeted to “real” expats, and the Dutch business climate will be better for knowledge workers and expats who want to work here temporarily.

Source (translated with Google): Beter richten van de 30%-regeling, kamerbrief 2011D31897