When an employee at the end of his employment is exempt from work, also known as “gardening leave”, the question arises whether the 30% ruling can still be applied on the wages during this inactive period. Although the employment agreement still exists the Dutch Tax Authorities state that the 30% ruling only applies to wages relating to a period of actual performance of work. After the end of the active period only one pay period (month or 4 weeks period) remains to apply the 30% ruling.