Breaking news for the intended cutbacks re the 30% facility

May 25, 2022

The government just announced further details of the intended austerity for the 30% ruling facility. Very good news is that it will not be abolished, only a cap on the qualifying salary will be proposed.

The intended cutbacks by the government will only relate to the permitted maximum annual level of salary under this facility (for 2022: € 216,000) and not to the tax position of the persons under this facility. The annual maximum allowed salary will be capped on the so-called “Balkenende norm”, meaning that no tax-free reimbursement may be granted on the part of the salary above € 216,000. Also, a 3-year transition period will be implemented.

This implies that all persons with the 30% ruling may still opt for ‘partial or deemed non-residency status’ (no Box 3 or foreign Box 2 levy)!

Even while residing in the Netherlands, these persons can still elect for non-resident taxpayers in Box 2 (no taxation on income from foreign resident companies, except for a substantial shareholding in a Netherlands resident BV) and Box 3 (no taxation on private wealth, only for real estate located in the Netherlands). For Box 1 income (salary, own home, alimony payments) they remain resident taxpayers (with a possible 30% tax free reimbursement on taxable salaries between € 39.467 and € 216,000.