Year-end check 30% facility and new salary criteria

Geplaatst op Wednesday January 6th, 2021

Update

Year-end check 30% facility

Please assess whether the wages of an expatriate worker who has been granted the 30% facility, complies with the salary conditions for the facility for that year. If this is not the case, the facility can no longer be applied as of 1 January of the year concerned, nor in the future. If the 30% facility is not applied correctly in the company’s salary administration, you can process the required corrections via the payroll system.

Salary conditions 2020

• The taxable salary should normally exceed € 38,347 in the 2020 tax year;
• However, for employees below the age of 30 who have a Dutch master’s degree in a scientific education, or an equivalent foreign degree (so-called “young masters”), the taxable salary should exceed € 29,149.

New salary conditions 2021

• The taxable salary should normally exceed € 38,961 in the 2021 tax year;
• However, for “young masters”, the taxable salary should exceed € 29,616.

 Salary conditions and parental leave

In brief, if an expatriate’s annual taxable wages stays below the salary conditions mentioned above due to parental leave, the wage amount can be used that the employee would have received without such parental leave. This exception has been extended to include additional birth, foster care and adoption leave. This applies retroactively as of 1 July 2020. The cause of the reduction of the salary needs to be administered correctly in the salary administration.

Questions?

If you need any additional information, please contact us.

 

Disclaimer
The information provided in this document is general information only, so it does NOT take into account your specific situation and is not meant as advice.