Corporate Immigration — The 30% ruling retrenchments of 1 January 2024 will likely be reversed
Santa Fe publication date
3 September 2024
Overview
The new 30% ruling measures, that took effect on 1 January 2024, are likely to be reversed again.
Who will be affected?
Companies located in the Netherlands who have (highly skilled) workers, hired from abroad.
Background
The gradual reduction of the 30% ruling, implemented per 1 January 2024, evoked much criticism of both foreign and Dutch companies, who have threatened to move abroad. The 30% retrenchment would lead to 15-20% less highly skilled migrants, according to an analysis of the Dutch Ministry of Finance. This would have a considerable impact on the Dutch economy which is very much a knowledge and talent-based economy and is at odds with the desire to further develop as a knowledge economy.
The retrenchment in its initial form would have the objective to be gradually reduced to 10%. This gradual reduction would take the form of a tax ruling for the first 20 months at 30%, the second 20 months at 20% and the third 20 months at 10%. This may now be amended due to the negative impact that had not been taken in consideration in the decision-making earlier.
Impact
The current speculations are based on the plans leaked in preparation to “Prinsjesdag”, which is comparable to the annual State of the Union (USA) or State Opening of Parliament (UK). These plans show that the 30% ruling will be cut to 27%, instead of the retrenchment that was initially installed earlier this year. With this reduced retrenchment the Netherlands remains attractive to international companies and international talent.
Date of implementation
Not communicated yet.
Santa Fe recommendation
Our team is available for any further guidance or queries regarding these changes.
Contact us
Please get in touch with us for further information or clarification:
Anique Borchert
Manager Immigration BeNeLux
Santa Fe Relocation
anique.borchert@staging.santaferelo.com
Diana van der Horst
Senior Immigration Consultant BeNeLux
Santa Fe Relocation
diana.vanderhorst@staging.santaferelo.com
Naomi van Noord
Immigration Consultant
Santa Fe Relocation
naomi.vannoord@staging.santaferelo.com
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