News about 30% ruling to be scrapped

Last activity 02 May 2022 by junkstephen

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d2e1New member22 April 2022 15:07:59

Hello,

I am reading news about that 30% ruling decision which is about to be scrapped. I will move to NL in June as HSM with my family and this news really bothered me. Has anyone heard this or have idea possbility of happening of this?

https://www.dutchnews.nl/news/2022/04/3 … plans-nos/

https://nos.nl/artikel/2425959-voorjaar … tjes-terug

Regards

CynicUK / Netherlands Expert23 April 2022 07:22:24

7633

@d2e1

I’ve heard the same. It’s always been a bone of contention amongst the Dutch (that some foreigners are getting massive tax reductions they can’t get).

The benefit was granted to enable foreign workers to maintain their houses back home so they could return to it after 5 years; these days many of them stay in the Netherlands, negating the need for the break.

d2e1New member25 April 2022 03:32:26

@Cynic

Thank you for your response.

I also heard/read a different story then yours on why tax reduction exists.

CynicUK / Netherlands Expert25 April 2022 08:35:31

7633

Well, the reason they are even discussing cutting it is the Dutch economy is tanking and needs some financial support, in other words, they need to reduce public spending; the Cynic in me suggests that removing the 30% ruling won't cost them a vote and may even do the opposite.

3JoshNetherlands Advisor02 May 2022 17:27:07

From what I heard the 30% ruling was to because there's a lot of startup costs in moving to a new country, so this helps with those. And yes, I have some Dutch coworkers who aren't happy at all that they are in the same pay grade as me, and I get more take-home pay than they do.

I don't think it's going to save the Dutch gov't as much as they think it will - it's going to be a lot harder to attract people from overseas, and it's going to be harder to keep people here who were expecting that dough.

My coworker thinks that companies will just have to raise their pay for high skilled workers, which I think is a nice thought but definitely won't happen. Multinational companies located here will likely just hire in other EU countries where labor is cheaper.

I'm waiting to see what happens to see whether I'll want to leave or not.

junkstephenMember02 May 2022 17:53:46

Personally im still moving regardless. If the intent is to attact workers they can't otherwise get, it should be kept in place and reduced again from 5 to 2 years.

Moving will cost me about 10k, mostly because of the dog.

An alternative is to have those companies pay the relocation costs and then they get those relocation costs back as a tax deduction. That would be a way to still be attractive and not generate as much negative waves.

One of the companies I am applying to moved their entire tech business out of their home country to the Netherlands because the Netherlands made it easy to attract tech workers from anywhere. And regardless, tech workers will pay a lot of taxes even if the first 30% is negated so that was a win for the Dutch government and the economy.

But yeah, cut it after two years. By then it will have covered my relocation and my tax accountant fees while i learn to navigate the dutch and us tax codes.

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