Netherlands : Employees of Foreign Companies to Pay Lesser Income Taxes
Expatriate employees in Netherlands, working on a temporary basis can avail of "the 30% ruling regime," resulting in a 30% tax free employment income in hand. This provision was introduced by the Dutch Government to compensate them for specific expatriate costs.
- (1888PressRelease) October 14, 2011 - Sunnyvale, CA - The State Secretary for Finance recently announced that changes would be made to the aforesaid 30% ruling regime. The changes are expected to be effective from 2012.
The current conditions for application of the ruling are:
For a non-resident taxpayer hired abroad by an employer resident in the Netherlands:
1. The employer must be obliged to withhold wage tax;
2. The employee must possess specific expertise which is not easily available in the Dutch domestic labor market;
Read more at http://www.nair-co.com/NetherlandsEmploymentLaw.aspx
Duration
The duration of the 30% ruling regime is of 120 months, which commences from the date of employment in Netherlands.
Proposed Changes
Expertise - the employee needs to possess specific expertise, which has limited availability in the domestic labor market; will be deemed to be met if the employee earns a minimum salary;
Time Period - the period which is taken into account for a reduction of the duration of the 30%-ruling will be increased from 10 to 25 years;
Read more at http://www.nair-co.com/NetherlandsEmploymentLaw.aspx
Learn more about Expat Tax.
About Nair & Co.
Nair & Co. provides an integrated solution in the HR, finance, tax, compliance and legal arenas making a company's overseas operations less risky, stress free and more strategic. It currently has 750+ client operations in over 50 countries with offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at www.nair-co.com
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