Update: 30% ruling in 2024

The 30% ruling, which has been a subject of discussion for quite some time, will undergo changes from 2024 in the maximum gross amount and the percentage of the tax-free allowance.

Regarding the 30% ruling two amendments are applicable for 2024:

The 30% ruling will be limited to the so called Balkenende standard, for 2024 that amount is € 233,000 gross. Another amendment is related to the percentage of the tax-free allowance (30% ruling), which will be gradually reduced over the coming years.

A tax-free allowance of 30% of the salary will apply for the first 20 months of the 30% ruling, an exemption of 20% will apply for the following 20 months and a 10% exemption will apply for the following 20 months, assuming that the employee is eligible for this ruling and meets the required conditions.

The amendment does not apply to employees who make use of the 30% scheme before January 1, 2024. If an employee is considered as an incoming employee after an interruption period, this transitional arrangement will no longer apply.

At this moment it is not clear how the Dutch Tax Authorities will consider the situations when the employee starts for example on 28 December 2023. However, based on the current information, we presume that start date of the employment and the start date of the application will be leading, which means that contracts cq assignments agreed before 1 January 2024 may be able to use “old regime” of 30% (tax fee allowance of 30% for 5 years).

Professional advice on the 30% ruling

As an (international) employer, it is crucial to stay informed about recent changes in the 30% ruling. Do you want to understand how these changes will impact your international employees and your company? Our Global Mobility Services (GMS) team is here to help. Contact us directly for personalized advice tailored to your needs.