30% ruling – Salary criterion (Eerste Kamer/Upper Chamber needs to approve the Tax Budget 2025 yet) and additional information relating to rates, amounts and percentages of payroll taxes from 1 January 2025

1. 30% ruling (expat ruling)

• The salary threshold for the 30% facility will increase to € 46,660.00 (€ 46,107 in 2024) starting January 1, 2025.
• For employees under 30 years of age with a qualifying master’s degree, the new salary threshold will be € 35,468 (€ 35,048 in 2024).
• Cap on the amount of the 30% ruling allowance: 30% of € 246,000.00 = € 73,800  (in 2024: € 233,000).

The amount mentioned are the taxable salary (after applying the 30% ruling tax free allowance)

The salary thresholds should be met continuously. This implies that if the salary criterion changes for the employee (e.g. to the annual increase or becoming 30 years, then the salary criterion should be reset in the payroll to meet the new criterion).

We emphasize that the HSM visa salary criterions are determined in a different manner than for applying the 30% ruling.

Tips to employers:

1. Please check out in in the December payroll whether the thresholds 2024 applicable are met.
2. It will be a good moment to review whether the fixed tax free 30% ruling allowance should be applied or that the incurred Extraterritorial Costs should be reimbursed (in general this implies additional administrative burden).  We refer to our earlier alerts in this matter in detail to understand the rules and the transitional legislation. Update on the 30% expatriate ruling – the current proposed changes

2. Information relating to new measures, rates, amounts and percentages of payroll taxes from 1 January 2025

In this 1st edition of the newsletter for 2025, the tax authorities provide information about measures that arise from existing legislation or regulations or from proposed legislation or regulations (such as the Tax Plan 2025).

Proposed laws and regulations have yet to be adopted in the Senate. As a result, proposed measures may still change.

Rates, amounts and percentages of payroll taxes from 1 January 2025

 bijlage-nieuwsbrief-loonheffingen-2025-lh2091b51fd.pdf  (in Dutch only)

Newsletter coverring proposed changes and measures including about the 30% ruling (expat ruling).

nieuwsbrief-loonheffingen-2025-lh2091t51fd.pdf  (in Dutch only)