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The 30%-ruling after 5 years for employees lived within a distance of 150 kilometers from the Dutch border

The Dutch Supreme Court ruled!

 

150 KM RULE

The conditions for the 30%-ruling have been changed on January 1, 2012. One of the new restrictions was the 150-kilometer requirement. In order to qualify for the 30%-ruling the employee should have lived, prior to the employment in the Netherlands, for at least 16 of the 24-months period at a distance of more than 150 km from the Dutch border.

The Dutch Supreme Court ruled earlier that the 150-kilometer requirement is in accordance with international law.

5 YEAR PERIOD 

On the basis of the transitional law the employees to whom the 30% ruling was granted before 2012 could keep it for 5 years after grant date despite that they were living within 150 kilometer from the Dutch border. The employees to whom the 30% ruling was granted before 2012 received it however initially for 10 years.

SUPREME COURT

The pending question was therefore whether employees who were already under the 30%-ruling application on January 1, 2012 should meet the 150 kilometer border criteria after 5 years.

The Dutch supreme Court ruled that employees, who had on January 1, 2012 the 30% ruling application granted, should meet the 150 kilometer criteria.

The employee will therefore after 5 years no longer be eligible for the 30%-ruling if he was, prior to the employment in the Netherlands, living less than 16 months of the 24 months at a distance of less than 150 kilometers from the Dutch border.

CONCLUSION

It is therefore important to stop processing the 30%-ruling after 5 years if the employee would not be eligible anymore.

Please contact me, if you have any questions about this article.

Mohamed Kaddour LL.M RB

Finsens Tax B.V.

Finsens Tax B.V.

Mohamed Kaddour LL.M RB

020 2624353

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