Budget Day is approaching — a.k.a. the day when the Dutch government reveals its money plans for the next year. And if you’re an international working in the Netherlands, it might bear some goed nieuws for you!
Remember the 30% ruling, the sweet tax cut that so many international workers have come to know and love? Remember how the Dutch government recently threatened to cancel it?
Well, they might have changed their mind, reports the AD.
The 30%… what?
The 30% ruling in the Netherlands is a scheme granting certain highly-skilled migrants a tax cut on up to 30% of their earnings during their first five years of work in the Netherlands.
At the beginning of 2024, the scheme was reduced to 30% for the first 20 months, 20% for the following 20 months, and then 10% for the final 20 months.
The tax cut is here to stay (probably)
Last year, in an attempt to replenish the pockets of the Belastingdienst (Dutch tax collection agency), the Dutch House of Representatives agreed to eventually scrap the ruling.
As of 2024, the scheme was downsized, leading to much criticism.
READ MORE | The 30% ruling in the Netherlands: The easy guide in 2024
Unsurprisingly, the decision to scrap it altogether was even more controversial.
However, it now looks like the ruling will not be scrapped after all, but just reduced from 30% to 27%.
Says whom, you ask?
As of right now, the happy news is just a rumour, but it is a very credible one.
It emerged as part of the usual news leak preceding Prinsjesdag, or Budget Day.
On this day, which happens every third Tuesday of September, the Dutch government announces their budget plans for the following year.
And every year, like clockwork, the plans are leaked beforehand.
To find out whether the 30% (well, 27%) ruling is really safe, we’ll have to wait another couple of weeks.
So don’t slap that “open to work” sticker on your LinkedIn profile just yet! 😉
What do you think of the 30% ruling potentially being reduced to 27%? Let us know in the comments below.