Hereby our update on the plans of the Dutch Government regarding the 30% ruling.
It was announced last Friday in the Spring Budget Report 2022 (‘Voorjaarsnota’) that the 30% ruling will be capped at the level of the WNT-standard (also called ‘Balkenende-norm’), which is EUR 216,000 (2022) and that there will be a transitional arrangement of 3 years.
From the overview of the calculated savings in this Spring Budget Report, they are expected to be nil in 2023, EUR 17 million in 2024, EUR 34 million in 2025 and structural savings of EUR 85 million as of 2026.
From this it can be derived that:
- from 2024 the WNT standard will be applied for all new 30% ruling holders (i.e. with the exception of the 30% ruling holders who change employers) and that
- from 2026 the WNT standard applies to all incoming employees who have a 30% ruling with an end date after December 31, 2025.
Those who are a 30% ruling employee for the first time in 2023 (so no change of employers) would then be able to benefit from the 30%-rule without a cap for a maximum of 3 years (i.e. if they become a 30% rule employee on 1/1/2023)
For taxable wages above this WNT standard, the effective tax rate will be the maximum tax rate (2022: 49.5%) and not 34.65% (70% of 49.5%).
Many things are still unclear, such as how exactly the WNT standard will be applied on for example non-regular wages such as bonuses or benefits from stock options/RSUs that relate to a certain period. The final plans will be announced on Prinsjesdag (September 20, 2022).
We will keep you informed of any updates. If you have any questions, please feel free to give us a call.
