Dutch Cities Oppose Changes To Expat Tax

By ExpatBriefing.com Editorial 18 October, 2011

Amid wider concerns of a negative impact on international businesses, Amsterdam city council has submitted a letter to Dutch State Secretary of Finance Frans Weekers urging him to reconsider plans to amend the country’s popular 30% tax ruling for expatriate workers.

The 30% tax ruling currently provides that expats working in the Netherlands are not subject to tax above 30% of their income.

However, the Dutch State Secretary recently announced plans to tighten the 30% tax break within the framework of the government’s 2012 tax plan, to ensure that only expats with income in excess of EUR70,000 would benefit from the provision and to ensure that employees from neighbouring Belgium and Germany (those less than 150km from the Dutch border) would also no longer qualify.

Other city councils, including Rotterdam and The Hague, are also reportedly concerned about the impact of the proposed changes on the international workforce, while international businesses fear that the plans will merely serve to dramatically increase wage costs.

The Dutch finance ministry is reportedly open to discussion on the issue and Weekers plans to make a further announcement shortly.

Tags: Expatriates | Tax | Business | Belgium | Netherlands | Employees | Professionals | Germany | Individual Income Tax |


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