Budget proposes updates to 30% scheme
In its September 2022 budget proposal, the Dutch government announced that, for 2023 and onwards, it would amend the 30% scheme to limit the maximum amount that eligible employees may receive as a tax-free allowance.
Under the 30% scheme, employees with specific expertise who are recruited abroad to work in the Netherlands are currently eligible to receive up to 30% of their taxable wages tax-free.
The Dutch government has confirmed its plans to limit the 30% scheme by capping the salary basis to which the 30% is applied to the maximum set in the Standards for Remuneration Act effective 1 January 2024 (in 2022 the maximum is set at EUR 216,000). The intent is to include a transitional arrangement to decrease the maximum to EUR 216,000 for employees that have taken advantage of the 30% scheme during 2022. These employees’ 30% scheme will be limited from 1 January 2026 onwards. Employees who apply for the 30% scheme on or after 1 January 2023 will be subject to the aforementioned limitation from 1 January 2024 onwards.
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