Junior tax minister Frans Weekers is to tighten the conditions for the 30% tax ruling used by expats to keep their income tax payments low, he said in a briefing to MPs.

The minister wants to change the rules to make sure ‘only people who are meant to benefit’ would qualify for the tax break, the Volkskrant states.
In particular, the minister is considering introducing an income limit of €50,000 a year, so that ‘wok chefs and pipe fitters’ would no longer qualify.
According to RTL news, people must also live at least 150 km from the border, to stop cross-border workers benefiting. The broadcaster did not say how the border restriction would work in practice.
Dutch nationals
In addition, Dutch nationals would only be eligible for the tax break if they returned to the Netherlands after 25 years, not 10 as under present guidelines. This year, RTL news reported that 2,000 of Dutch returnees, including two Philips executives, were also claiming the tax break.
The 30% ruling was introduced to encourage people with specific expertise to move to the Netherlands. The complicated calculations result in an effective maximum tax rate of 36% rather than 52%.
RTL has calculated the tax break costs the treasury €25m a year.
[Added September 12, 2011: The distance clause will apply to ‘workers from the border countries’ who live less than 150km from the Dutch borders. They will also be excluded from the 30% ruling, the briefing stated.]