The Dutch tax authorities have introduced a proposal in respect of some important changes to the Dutch 30%-ruling. On 7 September 2011, the State Secretary of Finance has announced the proposed changes in a letter to Parliament. It is to be noted that the proposed changes would substantially impact the planning opportunities for employees residing in Belgium and (partially or fully) working in the Netherlands.

The State Secretary has the intention to change the 30%-ruling for inbound employees on three key elements:
1. The so-called ‘specific expertise’ requirement will now be based upon a minimum salary level (supposedly EUR 50,000 although the exact limit is not mentioned in the letter of the State Secretary);

2. The look back of the so-called ‘discount rules’, that reduce the duration of the 30% ruling by previous periods of stay and/or work in the Netherlands, is extended to 25 years. Hence, new inbound employees that left the Netherlands more than 10 years ago will now no longer be entitled to the 30% ruling anymore (this change affects mainly Dutch employees who, after a long residence abroad, return to the Netherlands);

3. Employees living in the border area (i.e. radius of 150 kilometres from the Dutch border) will no longer qualify for the 30% ruling.

At this point in time, there is still quite some uncertainty regarding the timing of the new measures as well as around the transitional provisions.

We will follow-up on this matter closely and will keep you informed on any further developments.

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