Netherlands | September 2022 | Proposed amendment regarding the 30% ruling
In the new Tax Plan, the Dutch government announced that the benefit of the 30% ruling shall apply only up to a maximum salary in accordance with the so-called Balkenende norm”. The maximum salary for this norm amounts to € 223,000 for 2023 and shall probably be more or less the same for 2024. If approved by Parliament, the amendment regarding the 30% ruling shall take effect as of 1 January...
The Netherlands – New permit procedures for employees hired from abroad
Starting 1 June 2021, the Netherlands has introduced a new procedure to make it easier for start-up companies to hire employees from abroad. This procedure is a pilot project which will last 4 years.
The procedure has been implemented as start-ups are often unable to pay the salary required for the current the current highly skilled migrant scheme. The purpose of the new procedure is to allow...
The Netherlands – Notification obligations as of 1 March 2020 for foreign employees
As of 1 March 2020, foreign employees assigned to the Netherlands on temporary basis must be registered with the Dutch authorities. This obligation is based on the “EU Posted Workers Directive” to ensure that local employment conditions are met. Note that complying with the ruling shall result in penalties, even if the local employment conditions are met.
The above notification applies to all...
Netherlands – US citizens will need to apply an for European visa as of 2021
US citizens traveling to Europe will need to apply for an ETIAS visa (European Travel Information and Authorization System), a new travel authorization for Europe that will come into effect as of 2021.The ETIAS visa for US citizens is meant to maintain a high level of international security. To obtain the visa for Europe, US citizens will need to have a valid passport, a credit or debit...
The Netherlands – European commission warns EU members States that their “Golden Visa Schemes” pose risk to EU security.
EU member states have earned about € 25 billion in the last decade from wealthy individuals who obtained citizenship in a EU country in return for their investment. A report from the EU commission claims that the schemes designed to encourage wealthy individuals to invest in return for residency rights or citizenship pose a danger to the continent’s security.
By obtaining residency...
The Netherlands Maintain correct address of foreign employees to avoid mandatory Dutch wage tax rate of 52%.
As of January 1, 2019 employer must apply the highest tax rate of 52% in the Dutch payroll if the correct address of their foreign employees is not recorded properly.
Next to the highest wage tax rate, instead of the lower average wage tax rates, the following applies as well in the payroll:
No payroll tax credit is allowed.
Employer’s social security...
The Netherlands Expatriate employees in the Netherlands? Be aware of the new and transitional rules for the 30% expat ruling.
As of January 1, 2019 the duration of the 30% ruling will be reduced to a maximum period of 60 months. For existing 30% rulings there is a transitional rule that should be implemented in the Dutch payroll as follows:
End date of existing 30% ruling
30% applies up to
2019 or 2020
the date mentioned on the 30% ruling
2021, 2022 or 2023
December...
Possible break-up scenario for the large big four accounting firms to fight a crisis of confidence
The Netherlands – The patience of State Secretary of Finance in the Netherlands, Mr. W. Hoekstra, with the large accountancy firms is gone. He commissioned an independent committee to investigate what measures are needed to improve the quality of the statutory audit of large companies. Hoekstra wants the committee to check whether it is at least desirable to completely separate the audit...
As of January 1, 2021 the maximum period of the 30% ruling to be reduced from 8 to 5 years
On October 26, 2018, Dutch State Secretary of Finance has proposed an amendment to the tax bill for 2019 in order to reduce the maximum term of the 30% ruling from 8 to 5 years as of January 1, 2021.
If approved by the Dutch Parliament, the new rule regarding the 30% ruling will enter into force as of January 1, 2021 and will affect both new and existing cases.
Below a brief...
The Netherlands, U.S., U.K., Canada and Australia form international tax enforcement group
Leaders of tax enforcement authorities from the abovementioned countries have formed a multi-lateral tax enforcement group, Joint Chiefs of Global Tax Enforcement (J5), to collaborate in fighting international and transnational tax crimes and money laundering.
Membership of the J5 includes the heads of tax crime and senior officials from the Dutch Fiscal Information and Investigation Service...