Dutch nationals take advantage of 30% expat ruling

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.

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