One of the conditions for the 30% facility is that the person involved should annually earn a minimum taxable wage.
For 2015, the taxable wage – excluding the tax free 30% reimbursement! – should be higher than € 36,705 and more than € 27,901 for employees younger than 30 holding a master degree.
If relevant taxable wage at one year drops below the threshold, the 30% facility will not only be taken back with retro-active force, the facility is lost forever!
The minimum taxable wage can and will automatically be checked by the Dutch tax authorities through the annual wage statement (jaaropgaaf) of each person with the 30% ruling.
Minimum taxable wage in this context means all wage before payroll taxes “from current employment”. Severance payments are therefore not part of this wage.
Also, a part-time wage is not recalculated to a full-time wage for the minimum wage requirement.
As the above mentioned minimum taxable wage amounts are not extremely high (for expats), the test is however sometimes difficult to meet in cases where a transition from full-time to part-time occurs or where the employment is terminated during the course of the calendar year.
December is the last Month where a situation like this can be repaired (by increasing the taxable wage through for example a bonus or a decrease of the severance pay).
It is therefore crucial to carry out the minimum wage test for all 30% employees now before it is too late. I will be happy to check this for employers with expats and help you repair any problems in this respect.
For any immigration and international tax related questions please contact our firm.
We provide legal advice on immigration and tax (including immigration- and tax compliance) for:
- ‘expatriates’ and (international) private clients
- companies with cross-border activities