After the recent tightening of the 30% ruling such as limiting the duration and the announced capping of the amount over which the 30% ruling can be applied, 3 amendments were adopted by the House of representatives on October 26, 2023 that would further tighten the 30% ruling as of January 1, 2024. If the Senate agrees to this further tightening of the 30% ruling, it will result in an administrative burden increase for employers.
Last year it was determined that as of 2024 the amount over which the 30% rule may be applied will be capped at the norm of the Wet Normering Topinkomens (WNT norm). This standard is currently € 223,000 per year. The following austerity measures may be added as a result of the adopted amendments:
- The untaxed refundable portion of taxable wages (capped at the WNT standard) is capped at the following percentages:
- First 20 months: 30%
- Second 20 months: 20%
- Third 20 months: 10%
- Elimination of notional foreign tax liability for Box 2 and Box 3
- The additional cost of living due to a higher price level in the Netherlands than in the country of origin;
- The cost of storing furniture in the country of origin;
- Dual housing costs such as a hotel because the employee has continued to live in the country of origin;
- Travel expenses to the country of origin for such purposes as family visits or family reunification;
- Course costs for the employee and family members to learn the Dutch language;
- If the employee must file an income tax return in the country of origin and in the Netherlands, the cost of the Dutch tax return.
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