Last Friday, the cabinet in its Spring Notice (Voorjaarsnota) announced that it intends to change the 30% ruling facility.

This is what we know from the Voorjaarsnota:

The Dutch government proposes that the maximum 30% tax free allowance will be capped. This will be done by limiting the basis of the allowance to the maximum remuneration for the public sector, commonly referred to as: the Balkenende-norm (2022: EUR 216,000 gross yearly remuneration, indexed annually). The actual draft legislation is expected in September. Therefore, the details are limited. From the financial forecasts to the proposal it can be deduced that changes to the 30% ruling would not affect employees until 1 January 2024. The same forecasts imply that the cap will be introduced with transitional rules – whereby the Balkenende-norm will be applicable as of 1 January 2026 for all 30% rulings.

If the proposal is approved by Dutch parliament, the tax-free allowance will be capped at approx. EUR 65,000 per year (EUR 216,000 x 30%).

We expect that the details will be published in September 2022.