Junior finance minister Frans Weekers has relaxed tough new restrictions on the 30% ruling tax break for expats following criticism from employers, tax experts and other interest groups.

The minimum salary to qualify for the tax break will now be €35,000 – or €50,000 including the ruling, Weekers said in a briefing to MPs. The minister had originally said only those earning over €50,000 – effectively €70,000 including the ruling – would be eligible.
In addition, no salary requirements will be imposed on academics and researchers attached to official institutions, because many of them earn below that level, Weekers said.
Masters
The minister has also cut the salary limit for young ‘masters’ at the beginning of their careers to €38,007 including the 30% limit. To qualify, the worker must be below the age of 30. ‘These highly-educated youngsters are the sort of workers the Dutch knowledge economy can well use,’ Weekers said.
However, no exceptions will be made for teachers at international schools because it would be too complicated and lead to ‘problems with definitions’. This is partly because some Dutch schools also have international departments, the minister said.
The minister has drawn up five options to make up for the €37m structural shortfall in tax income generated by the new limits.
Tax shortfall
No decision on how to offset the shortfall in tax income has yet been taken.
‘In terms of boosting the Netherlands as a location for international companies, it would appear to be better to opt for a more limited duration,’ Weekers said.
MPs will debate the new requirements on November 15 and vote on the package on November 17.
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