Parliament backs changes to 30% ruling, set salary and time limits

MPs have voted in favour of changes to the 30% tax ruling for expats, bringing in a minimum salary and cutting the duration to eight years.

However, the new regulations are less severe than originally planned. Expats must now earn a basic salary of €50,000 (including the tax break) to qualify, rather than the €70,000 originally planned.

In addition, there will be no salary minimum for academic staff and researchers, and a new category of ‘young masters’ will be created for the under-30s who earn at least €38,000 (including the tax break).

No change for most

Ton Krol, of tax consultancy Blue Clue Tax says young people at the start of their career and those on a job rotation system within multinationals will be worst affected.

‘This will make it more difficult to attract new staff because talented people who are willing to move can work everywhere. Why work in the Netherlands if your net income can be twice as much somewhere else?’ he said.

In order to pay for the shortfall in expected tax income, the government has cut the duration of the tax break from 10 to eight years.

Distance

However, no changes have been made to the proposed 150 km requirement – which means expats must have lived at least 150 km from the Dutch border to qualify.

‘This means residents of Belgium who are working in the Netherlands will be severely hit,’ says Arjan Enneman, managing director of tax specialists Expatax.

‘The same applies to Germans who live close to the border. You have to ask if this will stand up in court, even though the minister says this is allowed under EU regulations,' he said. 'But what about the expat who temporarily worked in Belgium before he is seconded to the Netherlands?’



http://www.dutchnews.nl/news/archives/2011/11/parliament_backs_changes_to_30.php

Introduction of the ‘European Blue Card’

As from 19 June 2011 the Netherlands has a new purpose of stay: the European Blue Card. The European Blue Card is a separate purpose of stay in addition to the existing National Highly Skilled Migrant Programme. The EU Blue Card Council Directive is intended for highly skilled foreign nationals who do not have EU, EEA or Swiss nationality, and who wish to work in one of the member states of the EU. The Directive is also meant to make it easier to settle in another EU member state. A residence permit will always be required in that other member state, however. To obtain this residence permit the employee must comply with the conditions applicable in that member state.

The conditions for residence in the Netherlands as an EU Blue Card holder are stricter than those for residence as a Highly Skilled Migrant. The employee must have a contract for highly qualified employment for at least one year, earning at least EUR 60,000 gross (in 2011). The employee must have completed a course of higher education lasting at least three years. The employee must prove this by having his diploma assessed by Nuffic. For a regulated profession, a competent authority will take decisions about the admission to that profession.

Advantages
One of the advantages of the EU Blue Card is that it is easier for an EU Blue Card holder and his family members to settle in another EU member state at a later date. After eighteen months foreign nationals who have an EU Blue Card are exempted from the provisional residence permit (MVV) requirement, if they want to work in another EU member State. In this second member state the employee must submit an application for a residence permit as a holder of an EU Blue Card. Each member state may implement the directive in slightly different ways. If someone holds a Blue Card in the Netherlands, this does not mean that the requirements are also met in other member states.

Another advantage is that after having stayed lawfully with the EU Blue Card holder in the Netherlands for two years, the family members may apply for a residence permit for ‘continued residence’. For other purposes of stay this is only possible after having stayed lawfully in the Netherlands for three years. The family members must have resided legally and continuously within the territory of an EU member state for at least five years, however. An employee who has stayed legally in the Netherlands as an EU Blue Card holder for two years may apply for the status of ‘long-term resident as a non-EU member country national’. He must have resided legally and continuously within EU territory for five years and must comply with the other conditions for this purpose of stay.

source: http://english.ind.nl/nieuws/2011/invoering-europese-blauwe-kaart.aspx?cp=111&cs=385