30% ruling in 2019

Salary requirement and shorter duration 30% ruling
Minimum salary requirement over 2018 excluding allowance
One of the conditions to be eligible for the 30% ruling is to be able to show a ‘specific expertise’ in the form of a minimum annual salary in the Netherlands. For 2018, the two salary options were:
  • For employees aged 30 or older: €37,296
  • For employees under the age of 30 with a Master’s degree: €28,350
The above salaries are annual gross salaries including contractual 13th month, bonus and/or holiday allowance, but excluding the 30% tax-free allowance.
Should the above-mentioned salary not be reached after all, the  30% ruling will be revoked and will not be granted to the employee again in future. Important here is to note the employee’s age. If an employee turns 30, the higher salary requirement will start to apply the month after the month (s)he had his / her birthday.
Increase minimum salary requirement for 2019
The Belastingdienst annually raises the minimum salary requirement for the 30% ruling. At the moment of writing, the increase for 2019 has not yet been published. Although the increase has not exceeded 1% during the previous years, it is still important to ensure that salaries of employees to whom the 30% ruling has been granted will still make the new requirement in 2019. The same obviously applies for new applications in 2019.
Shorter duration: Transition period for existing cases
As you are probably aware already, the duration for the 30% ruling will be shortened from eight to five years. Initially, this would be applied to both existing and new cases as of 1 January 2019. However, the Dutch government has decided on a transition period of two years for existing cases, meaning that the new rules on duration will only come to effect for them on 1 January 2021. Employees whose eight-year 30% ruling would have originally ended in 2019 or 2020 will therefore not be affected at all. For those with an end date of their original eight-year 30% ruling in 2021 or later, the duration will be shortened to five years.
Should you have any questions based on the above or on another matter, as always, please do not hesitate to contact us.