As an international professional with the 30% ruling, you may be concerned about what happens to this tax benefit upon dismissal. This is an understandable concern, as the 30% ruling can constitute a significant portion of your net income. The situation surrounding 30% ruling dismissal is fortunately not always as black-and-white as you might think.
Whether you retain the 30% ruling after dismissal depends on various factors: the type of dismissal, the timing of your new job, and whether your new employer meets the requirements. In this article, we explain when your tax benefit automatically ends, what options you have to retain it, and what the practical consequences are for your tax return.
For international employees navigating the Dutch labor market, it is crucial to understand these rules. A wrong assessment can lead to unexpected tax obligations or the loss of a valuable financial benefit. Therefore, it is important to take the right steps in a timely manner.
When Does Your 30% Ruling Automatically End Upon Dismissal?
The 30% ruling does not automatically end with every type of dismissal. It depends on your specific situation and the circumstances of your departure. Dismissal itself does not mean that your tax benefit immediately disappears, but there are important deadlines you must consider.
With regular dismissal, whether you resign yourself or are dismissed by your employer, you have three months to find a new job that meets the requirements of the 30% ruling. This period begins on the day your employment contract officially ends, not on the day you give notice.
However, there are situations where the ruling can end immediately:
- If your maximum period of five years (or eight/ten years for older decisions) has expired
- When you permanently leave the Netherlands without prospect of return
- Upon dismissal for poor performance combined with failure to find new suitable employment
The type of dismissal (dismissal on the spot, mutual agreement, or reorganization) has no direct influence on the continuation of your 30% ruling. What is crucial is that your new employer must meet the same requirements as your previous employer and that your salary remains above the established thresholds.
Retaining the 30% Ruling After Dismissal: Possibilities and Conditions
Retaining your 30% ruling after dismissal is certainly possible, but requires strategic planning and adherence to strict deadlines. The Tax Authority offers various scenarios in which you can continue the tax benefit.
The three-month rule is your most important remedy. Within three months after termination of your employment contract, you must have found a new job with an employer who meets the requirements. Your new employer must be able to demonstrate that your specific expertise is scarce in the Dutch labor market.
During unemployment, your 30% ruling remains valid, but only if you are actively looking for new work and find a suitable position within the established timeframe. You do not need to apply for unemployment benefits to retain the ruling, but you must be able to demonstrate that you are actually looking for work.
Special situations in which the ruling can be continued:
- Transfer to an employer within the same group of withholding agents
- Temporary secondment to another organization
- Starting your own business (under strict conditions)
- Transfer to scientific research at a recognized institution
For a smooth transition, it is essential to contact global mobility compliance specialists before your dismissal. They can help you evaluate your options and prepare the necessary documentation.
Consequences for Your Tax Return and Repayment
When your 30% ruling ends, this has direct consequences for your tax return and possibly for repayment obligations. It is crucial to understand these implications to avoid unpleasant surprises.
If your 30% ruling ends during the year, you must report this in your annual tax return. The portion of your salary that you receive after termination of the ruling is fully taxed at the normal rate. This can lead to a higher tax debt than you are used to.
Possible repayment scenarios:
- Too few provisional assessments paid due to loss of tax benefit
- Corrections to already filed returns in case of mid-year termination
- Adjustments in your box 2 and box 3 status (no longer applicable from 2025)
For tax benefits already enjoyed, you do not need to repay them if you have used the ruling lawfully. Only the portion from the date of termination is taxed differently.
It is advisable to immediately contact a tax advisor in case of mid-year termination. They can help you calculate the consequences and file any corrections to your tax return.
Next Steps: New Employer and Transferring the 30% Ruling
Transferring your 30% ruling to a new employer requires careful preparation and adherence to strict procedures. This process differs depending on whether your new employer belongs to the same group as your previous employer.
With an employer within the same group of withholding agents, your current 30% ruling decision remains valid. You do not need to file a new application, but you must ensure that all administrative aspects are correctly transferred.
For a new employer outside your current group, you must file a new application within four months after your first working day. This deadline is crucial: if you are too late, the tax benefit only takes effect from the first day of the month after approval of your application.
| Situation | Action Required | Deadline | Benefit Start Date |
|---|---|---|---|
| Same group of employers | Administrative transfer | Immediate | First working day |
| New employer (within 3 months) | New application | 4 months after start | First working day |
| New employer (after 3 months) | New application | 4 months after start | Month after approval |
Required documentation for transfer:
- Copy of your current 30% ruling decision
- New employment contract with written agreement on application of the ruling
- Employer statement on scarcity of your expertise
- Proof of continuity in your activities
Retaining your 30% ruling upon dismissal is complex but certainly achievable with proper preparation. By taking timely action, gathering the right documentation, and acting within the established deadlines, you can retain this valuable tax benefit when transitioning to a new employer. Remember that professional guidance with global mobility compliance audits and advisory services can help you optimize this process and prevent costly mistakes. For personalized assistance with your specific situation, contact our specialists.
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