To qualify for the 30%-ruling of the salary criteria the employee should have a taxable salary during the term of the arrangement -i.e. continuously and per annum – exceeding the minimum annual taxable salary criteria as prescribed by the Dutch tax authorities.
- For 2020 the gross taxable salary for the 30% facility must be more than EUR. 38,961 (2020: EUR 38,347) for a person older than 30 years.
- For 2020 the gross taxable salary for the 30% facility must be more than EUR. 29,616 (2020: EUR. 29,149) for a person with a qualifying master degree who is younger than 30 years.
In the employment agreements these criteria are to be met.
The salary criteria is checked by the Dutch tax authorities through the payroll information provided per the end of each calendar year. If it would appear that the criterion is not fulfilled the 30%-ruling in any given year will be withdrawn with retroactive effect to the start of that year and can no longer be applied.
We therefore advise to verify each year before year-end that employees with a 30%-ruling still meet their salary criteria for that year. This condition also means that the salary does not have to be paid immediately for the 30% facility to apply, this can be ‘repaired’ later on in the calendar year (the employment agreement should nevertheless mention the minimum annual salary).
Contact us for more information about Salary criteria and other questions.