Discussions around the 30 percent ruling will start up once again as NSC leader Pieter Omtzigt aims to scrap the tax break for expats in the upcoming Spring Memorandum (voorjaarsnota), NOS has reported.

30 percent ruling in the Netherlands stands to be cut yet again

After a rollercoaster ride where the 30 ruling for skilled migrant workers was scrapped and then brought back by the current government but at a lower 27 percent, debates are due to start up all over again. Omtzigt is trying to push the controversial plans through again in the Spring Memorandum where the Dutch government makes adjustments to the national budget. 

"We are heading towards 200.000 people from abroad who will receive 27 percent of their income tax-free. If we want to make the economy fairer, we should not have groups of people who pay less tax," Omtzigt told De Telegraaf. With the extra money that scrapping the tax benefit would yield, the NSC leader wants to reduce tax on energy and improve the disability system.

Same plan to scrap Dutch expat tax break, same problems

The tax break, which allows a select group of highly-skilled migrants who move to the Netherlands for work to claim the first 30 percent of their income as tax-free within their first five years of residency, was capped by the Dutch government in 2023. The original plan was to reduce the tax break to 20 percent after 20 months, then to 10 percent after another 20 months, after which it would only apply for another 20 months. This was to apply from January 2024.

However, many experts warned that cutting the tax benefit, which draws many much-needed skilled workers to the Netherlands, could damage the economy. Some companies, such as ASML, even threatened to move their operations out of the country. 

After this, the government reversed the plans to scrap the tax break by reducing the tax ruling from 30 percent to 27 percent from 2027.

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