Big cities fear 30% ruling changes will drive out expats and companies
Amsterdam city council has written to junior tax minister Frans Weekers urging him to reconsider plans to change the 30% tax ruling for expats, the Financieele Dagblad reports on Thursday.
Rotterdam and The Hague are also concerned about the effect of the changes – which introduce a high income limit – on their international workforces.
The 30% ruling means certain categories of expats do not have to pay tax over the first 30% of their salaries. But the new income limit means expats will have to earn at least €70,000 to qualify, tax experts say.
Teachers, IT
This means young IT experts, teachers and designers will not meet the income limit and may move away, Amsterdam says.
Hermen Hulst of Amsterdam based Guerilla Games told the paper some 75% of his staff currently qualify for the ruling. If the changes go ahead, he expects a €1m increase in his wage bill to keep workers on board.
‘Compared with the US and England, our income tax rates are high,’ he told the paper. ‘The 30% ruling works in our favour. Otherwise we will have to seriously consider moving abroad.’
Pseudo expats
In a reaction, the finance ministry said it is open to discussion. ‘The changes are designed to exclude pseudo expats, not to spoil the Netherlands’ reputation as a place to do business,’ a spokeswoman said.
Weekers is expected to say more about his plans next month.
The 30% ruling changes will also introduce a 150 km requirement, meaning that expats who come from closer than 150km to the Dutch border will not qualify either. This rules out all Belgians and many Germans, tax experts point out.
The labour mobility centre Expatise has also written to the minister, employers organisations and MPs calling for a thorough investigation into the likely impact of the changes.
In particular, the social and economic impact should not be overlooked, said director Inge Nitsche.
Earlier stories
Minister to stop 30% ruling for poorer expats
Belgians disqualified from 30% ruling
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