A recent decision by the Amsterdam Court of Appeal has clarified the shortened validity of the 30% ruling. The ruling confirms that if no valid approval is in place, the tax benefit cannot be applied.
What’s the case?
An employee objected to payroll tax deductions made in early 2021, claiming the 30% ruling should have been applied. However, their original approval expired on January 1, 2021, and no new approval was issued.
What did the court decide?
The court ruled that the tax authorities were correct to withhold payroll taxes without applying the 30% ruling since there was no valid approval for the period in question. This decision emphasizes the importance of keeping track of your 30% ruling’s validity and renewing it on time.
Takeaway
If your 30% ruling is due to expire, make sure to consult your employer or tax advisor to avoid any unexpected issues. If you need assistance, you can always reach out to us at info@dutchtaxadvice.nl or complete our contact form on our website.
For those interested in the legal details, the full judgment is available:
- Amsterdam Court of Appeal, December 3, 2024 (published December 25, 2024), ECLI:NL:GHAMS:2024:3556, 24/3136 to 24/3141
- Amsterdam Court of Appeal, December 3, 2024 (published December 25, 2024), ECLI:NL:GHAMS:2024:3554, 24/3123 to 24/3126
