A tax break for skilled foreigners is being used by almost 2,000 Dutch nationals at a cost to the treasury of €25m a year, according to research by RTL news.
The 30% ruling is supposed to make the Netherlands more attractive to foreigners and means they do not have to pay tax over 30% of their basic salary and bonus for up to 10 years.
In total, nearly 40,000 foreign workers take advantage of the scheme, costing €500m in lost tax income, according to finance ministry figures.
But the scheme has also been stretched to include Dutch nationals who have worked abroad for a long time, RTL says. For example, two members of the executive board at electronics giant Philips use the 30% ruling. These two alone can save €200,000 on their tax bill.
The Philips executives also get generous tax free living and business expense allowances in connection with the scheme, RTL says. Other stock exchange-listed companies, including Ahold, Akzo Nobel and Shell also take advantage of the tax breaks, RTL says. Ahold, for example, employs several Dutch nationals who have worked abroad for a long time and use the 30% ruling.
The broadcaster says some tax advisers feel the break has been stretched too far and the Socialist Party plans to raise the issue in parliament.
Thank you for donating to DutchNews.nl.
We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.Make a donation