1. 30% Ruling to be Limited as of 2025

The Dutch House of Representatives has passed an amendment (26 October 2023) to further reduce the 30% tax rule which is a tax advantage for highly skilled migrants working in the Netherlands as per 1 January 2024. A second amendment has also passed to abolish the partial foreign tax obligation as of 1 January 2025 for those who fall under the 30% tax rule.

What does this mean for the 30% tax ruling

The current scheme allows a highly skilled migrant to apply for a 30% tax exemption of their salary under certain preconditions. The proposal which comes into effect as of 1 January 2024, will significantly reduce the tax advantage for those who start as of 1 January 2024 or later. The maximum duration of 60 months remains the same.

• From 1 January 2024, a maximum of 30% savings will only apply for the first 20 months.
• After 20 months, a maximum of 20% savings will only apply for the second 20 months.
• After 40 months, a maximum of 10% savings will only apply for the third and last 20 months.
• When the duration of the compensation only applies to a shorter period than 60 months, the same period and percentages apply.

This measurement and the savings that will follow will be used to reduce the student loan interest. There will be a transition period for those who are currently successfully applied for the 30% tax ruling in the last salary pay period of 2023.

Partial foreign taxpayer status

Under the current scheme, a remission of tax payment can be applied for those who fall under the 30% ruling. The second amendment will abolish the partial remission of tax as of 1 January 2025. Transitional rules will apply for those who already applied for the 30% rule on 31 December 2023, and can benefit from the status through to 2026.

There are still many questions that remain unanswered now, and please contact us for more information or guidance.

 

2. Paving the Way for Authorized Posted Workers

In a world where the movement of people across borders for work has become a fundamental aspect of the global economy, ensuring the rights and responsibilities of both employers and employees is paramount.  The Netherlands, known for its progressive policies, recently introduced a transformative proposal for posted workers.

The Dutch Minister of Social Affairs and Employment has introduced a bill set to reshape worker posting in the country, starting January 1, 2026.

Companies wishing to post workers in the Netherlands will require authorization, marked by a significant €100,000 deposit. This deposit emphasize their commitment to meet Dutch regulatory criteria.

Fulfilling the authorization necessitates compliance with specific criteria and established legislation, such as the ‘Placement of Personnel by Intermediaries Act’ (Waadi). This shows a commitment to fair and responsible labour practices.

This bill promises fair employment practices for both workers and employers by establishing liability and regulation for posting workers in the Netherlands. What’s also worth to mention, that this authorization requirement extends not only to Dutch companies but also to foreign ones, ensuring fairness and responsibility regardless of origin.

The world of posted workers is ever-evolving, and it’s crucial to stay informed about these developments. While the proposed bill’s effects won’t be felt until 2026, now is the time to start preparing for this transformative change and keep an eye on updates.

The journey towards authorized posted workers might be filled with challenges, but it in the end paves the way for a more fair and responsible future for all involved parties.

So, stay ‘posted’ for more updates, as we navigate this exciting new horizon in the world of posted workers for you.

 

3. Legalization of Documents from China

If you want to use a document from China in the Netherlands, first you need to translate it into English by a notary in China. Then it requires legalization by the Chinese authorities and by the Dutch embassy or consulate-generals in China.

From 7 November 2023 onwards, China will be part of the apostille countries (Convention of 5 October 1961 Abolishing the Requirement of Legalization of Foreign Public Documents – 1961 Apostille Convention). Although the translation into English is still required, this change means a more simplified legalization (document authentication) process.

We will keep you informed on the details.