CONVINUS Global Mobility
CONVINUS Global Mobility Insights - Winter 2024 / 2025An employee takes leave, resulting in reduced salary. Depending on the type ofleave, this may affect the salary threshold.An employee with a (qualifying) master’s degree turns 30 years of age.An employee is partly subject to Dutch tax because they work partly in theNetherlands or, for other reasons, are partly taxed abroad.An employee has additional employment income, for instance, from anotheremployer.An employee has exchanged gross salary for a tax-free allowance. Since thesalary threshold is based on taxable income, this may affect the maximum 30%allowance.The primary importance is to ensure that the salary threshold is met so that, as anemployer, you are not confronted with corrections from the Dutch Tax Authoritieslater on. At the same time, it is advisable to pursue an accurate calculation of themaximum 30% allowance, meaning that it is applied optimally.If the allowance is set too low while there is some more space, the employee isbeing deprived.Specific expertiseAs of January 1, 2024, the salary thresholds are as follows:High: more than € 46,107Low: more than € 35,048 (for employees under 30 with a master’s degree atuniversity level or a foreign master’s degree equivalent to a Dutch universitymaster’s degree).No salary threshold applies for scientific researchers at scientific researchinstitutions.Note!The 2024 salary threshold is based on annual taxable income, which must be morethan the specified amounts above. Please ensure that the income is not below thethreshold, nor exactly at it; it must be above it.30
CONVINUS Global Mobility Insights - Winter 2024 / 20252.What should employers consider this year?In addition to checking whether the annual salary threshold has been met, thereare several other points of attention. We highlight the following (not exhaustive):CappingAs of January 1, 2024, the application of the 30% ruling is capped according to the"Balkenende norm", introducing an upper limit. The maximum tax-free 30%allowance is € 66,900 annually (€ 233,000 x 30%). For employees who started in 2024,this amount is prorated based on time. However, transitional law applies foremployees for whom the 30% ruling was applied to the salary in the last pay periodof 2022. For these employees, the upper limit will only apply as from January 1,2026. Whether the transitional law is applicable must be assessed on a case-bycasebasis for each individual employee.30%/20%/10%-schemeIn the Budget Plan 2025, it has been proposed to repeal the 30%/20%/10%-schemeand instead reduce the maximum percentage to 27% starting January 1, 2027. If theBudget Plan is approved, the aforementioned scheme will not apply.US national opting for partial non-resident tax treatmentFor US-American nationals opting for partial non-resident tax treatment, wage taxwithholding may only be based on the salary over which the Netherlands isentitled to levy tax according to the tax treaty.This group often has an interest in not having wage tax withheld on their entiresalary, as they are already required to pay taxes in advance in the United Stateswhen additional payments are due there, for instance for income on which theNetherlands do not have taxation rights. Therefore, payroll adjustments can bemade at year-end to accommodate these employees.This can still be done for 2024. As from 2025, it is not possible to elect for partialnon-resident tax treatment anymore with the exception of those subject totransitional law in which case they can benefit from this scheme until the end of2026.31
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