Condition of 150 kilometers from Dutch border at the 30% ruling

High Counsel:  Condition of 150 kilometers  from Dutch border at the 30% ruling is not conflicting with European legislation

On the 4th of March the High Counsel decided that  the required distance of 150 kilometers or more, which  the employee used to live from the Dutch border does not conflict with European law.
This means that only employees who used to live 150 kilometers or more from the Dutch border  for a period of at least  2/3rd of the 24 months prior to the employment in the Netherlands, qualify for the 30% ruling.

The above mentioned condition of the 30% ruling is applicable since the overall change of the conditions of the 30% ruling  on  1 January 2012.
Since that moment, stakeholders claimed that this  condition was in conflict with European legislation.
This issue was submitted  to the European Court of Justice who decided on the 15th of February 2015 that the 150 kilometer requirement was not in inflict with European Legislation.
This would only be different if there would be any form of overcompensation compared to the actual extraterritorial costs made by the foreign employee.

According to the High Counsel the legislator based the figures for the 30% ruling on factual investigations. And therefore the High Counsel decided that there is no recognizable systematic overcompensation compared to the actual extra territorial costs. This decision implicates that foreign employees, living within 150 kilometers or less from the Dutch border prior to their employment can definitely not apply for the 30% ruling.  Therefore employees from Belgium, Luxemburg, the border area of Germany, France and some parts of the United Kingdom will not apply for the 30% ruling. However, the actual extraterritorial costs are to be compensated without tax applicable.

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