Partial reversal of stricter rules for 30% scheme
Gepubliceerd op 3 oktober 2024 in Nieuws
Foreign employees who work in the Netherlands can use the so-called 30% scheme, this under certain conditions. If they can apply this scheme, 30% of the salary is a tax-free allowance with a maximum of € 69,900 (2024). The 30% scheme has been economised since the beginning of 2024, but the government wants to largely reverse this retrenchment.
Original retrenchment
The 30% scheme can be applied for a maximum of 60 months. Since 2024, the previous cabinet has reduced the scope of the 30% rule. The 30% tax-free allowance was since 2024 applicable for the first 20 months, the following 20 months only 20% of the salary may be paid net instead of 30% and the following 20 months only 10%.
Retrenchment reversed
An amendment to be included in the Tax Plan 2025 will largely reverse the retrenchment. The proposal is to set the maximum untaxed allowance at a constant flat rate of 27% from 1 January 2027. In 2025 and 2026, a tax-free rate of 30 will remain in effect for everyone and therefore no phase-out will take place yet.
Note!For employees who were already applying the 30% scheme before 2024, the 30% rate will continue to apply over the entire 60-month period.
Increase in salary standards
To apply the 30% scheme, an employee must earn at least a certain salary. For this year this is € 46,107, for employees under 30 with a Master’s degree this is € 35,048. It has been proposed to increase both amounts to € 50,436 and € 38,338i, respectively, from 2027. These are the amounts based on 2024 and will therefore still be indexed as of 2027.
Note! This increased salary does not apply to those who already applied the 30% scheme before 2024.
30% scheme up to maximum the salary standard
As of January 1, 2024, the 30% scheme is also limited to the salary standard. This means that in 2024 a maximum of € 69,900 (30% of € 233,000) may be compensated net under the 30% scheme. The Cabinet has made no proposals to reverse this limitation.
Note! The salary standard for the year 2025 is € 246,000. In 2025, a maximum of € 73,800 (30% of € 246,000) may therefore be compensated net under the 30% rule. For employees who already applied the 30% scheme before 2023, the restriction does not apply in 2024 and 2025. They will not be affected until January 1, 2026.
Actual costs or 30% scheme?
The 30% scheme is optional. Employers can in fact also choose to reimburse the actual costs untaxed, insofar as this is fiscally possible. This option will continue to exist.
Note! The employer must choose, no later than the first pay period of a calendar year, whether to apply the 30% scheme or to reimburse the actual extraterritorial expenses. That choice then immediately applies to the entire year.
Foreign partial tax liability
Foreign employees who apply the 30% scheme will also have the option in 2024 to keep foreign capital income outside the Dutch taxation in box 2 and box 3. The employee will then be considered a foreign taxpayer for box 2 and box 3, despite living in the Netherlands. Last year it was already decided by the previous cabinet to abolish this facility by 2025. The current Cabinet has made no proposals to change this.
Note! Employees who already applied the 30% scheme before 2024 can still continue to use this facility through 2026.
Note! The Cabinet’s proposed adjustments to the 30% scheme must still be included in the 2025 Tax Plan and then approved by the Lower and Upper House of Parliament.
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