The government has decided to cap rather than scrap the 30% ruling which some people who move to the Netherlands to work are able to benefit from.
The cut is one of a package of measures the government introduced in Friday’s spring statement and will help pay for higher spending on defence, the state pension and compensation for savers.
The 30% ruling, which gives claimants the right to 30% of their salary tax free, will now only apply to a maximum of €216,000 in gross income, so that people earning more will pay the full tax rate of 49.5% on the excess.
The figure of €216,000 is the so-called Balkende norm, named after the former prime minister Jan Peter Balkenende, who brought in a maximum ceiling for public sector pay which is in line with the prime minister’s remuneration.
Nothing will change for international workers earning less and the wage cap will be phased in over three years.
Source: DutchNews.nl: