• Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 5/28/2013

Netherlands - 150-kilometer limit under “30% ruling” tax relief 

May 28: According to an opinion from the Advocate General of the Dutch Supreme Court (Hoge Raad der Nederlanden), employees who reside less than 150 kilometers from the Dutch border during two-thirds of a 24 -month period preceding the commencement of their employment or secondment in the Netherlands are not eligible for the “30% ruling” tax relief (i.e., the Dutch tax measure that exempts 30% of salary income from tax, leaving the remaining 70% as taxable salary).


Foreign employees with specific expertise that is scarce in the Dutch labor market, subject to certain conditions, are eligible for tax relief under the “30% ruling.”

If the 30% ruling is applicable, 30% of the employee’s salary can be paid as a tax-free allowance. The remaining 70% is the amount of salary that is subject to tax in the Netherlands.

Read TaxNewsFlash-Europe: The Netherlands - Foreign worker tax relief under “30% ruling”

Current case

The Breda district court previously held that the 150-kilometer limit did not violate EU law.

In an appeal before the Dutch Supreme Court, the Advocate General delivered a final opinion concluding that the 150-kilometer boundary is not a discriminatory measure under EU law because it does not actually restrict the free movement of workers.

With the release of the Advocate General’s opinion—which may be a factor that influences the high court’s decision—the Supreme Court can be expected to issue a final judgment concerning the 150-kilometer boundary.

Read a May 2013 report prepared by the KPMG member firm in the Netherlands: Advocate General: 150 kilometer boundary in 30% ruling does not violate EU law

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