4. Duration of the 30% ruling
This series addresses the most relevant topics regarding the 30 percent ruling. In this post: What is the duration of the 30% ruling?
The 30% ruling is granted for a maximum period of 60 months (5 years). For employments that started before January 1, 2012 the maximum duration period is 10 years.
The 30% ruling is only applicable for the maximum period as long as the conditions to the ruling are met. If the conditions are not met anymore, the 30% ruling ends per that moment. For 30% rulings granted before January 1, 2012 there is protection for the first 5 years of the duration period.
The maximum duration period of 60 months is reduced by all periods of previous stay and/or (deemed) work performed in the Netherlands that ended in the last 25 years prior to the start date of the Dutch employment. This rules out almost all Dutch national employees who return to the Netherlands at some stage in their international career. Even when they have been away for 20 years, the duration period is fully reduced as the period between birth and leaving the Netherlands 20 years ago, is reduced as this whole period ends within this 25-year look-back period.
No reduction at all will apply if an employee did not exceed below thresholds in the 25-year look-back period:
|Nature of stay||Maximum periods of previous stay or (deemed) work in past 25 year period|
|Work||20 days per calendar year|
|Personal||6 weeks per calendar year (a one-off 3 month period is allowed within the 25 year period)|
If any of these thresholds are exceeded, a reduction will apply for all periods of previous stay and work in the Netherlands that ended in the previous 25 years. If a reduction applies, each period is rounded up in months.
By fiction, periods in which someone was considered as employee according to the Dutch Wage Tax Act 1964 are deemed as periods of previous work. As such, the position of employees who have been a (remunerated) statutory director and supervisory board member before requires specific attention. They may not be able to (again) obtain the 30% ruling if in the past they have or could benefit from the 30% ruling.