30% ruling will be changed again!
September 17th 2024 it is announced that the 30% ruling will be changed again and that these new measures will be included in an amendment note to the Tax Plan 2025 bill. The intention is to send this amendment note to The House of Representatives in the week before the first legislative consultation on Monday 21 October.
What will be changed?
The following 30% ruling changes will be included in the amendment:
- The austerity measures to the 30% ruling from the Tax Plan 2024 in relation to the '30-20-10 scheme' will be reversed.
- The maximum tax-free reimbursement will be set at a constant flat rate of 27% as of 1 January 2027.
- In the years 2025 and 2026, a standard percentage of 30% will apply to all incoming employees with a 30% ruling.
- 2 different 30% ruling salary limits will be introduced!
(1) For all incoming employees the minimum salary level for the standard 30% ruling will be €46,660 (indexed to 2025 figures) and the minimum salary level for employees under the age of 30 with a qualifying master's degree will be €35,468 (indexed to 2025 figures).
(2) For incoming employees who started with a 30% ruling on or after 1 January 2024 the minimum salary level for the standard 30% ruling will be increased as from 2027 to €50,436 (price index of year 2024) and the minimum salary level for employees under the age of 30 with a qualifying master's degree will be increased as from 2027 to €38,338 (price index of year 2024).
(3) Transitional legislation is proposed for employees that already benefitted from a 30% ruling before January 1, 2024. This 30% ruling group of employees:
- will keep a constant flat rate of 30% as the maximum tax-free reimbursement until the end of their 30% ruling term;
- will keep the old (indexed) minimum salary levels which will continue to apply until the end of the 30% ruling term, being:
for the standard 30% ruling salary level applicable for 2025: €46,660 (indexed to 2025 figures) and for the employees under the age of 30 with a qualifying master's degree applicable for 2025: €35,468 (indexed to 2025 figures).