Employers should check annually (e.g., in December payroll run) or when employees are leaving the company to make sure that the indexed salary criterion as applicable for the employee is met.
If this salary criterion is not met the implications are:
New legislation 30% ruling – proposal
The Tax Plan 2023 proposes a cap on the base for the computation of the 30% allowance. This capping measure will take effect from 1 January 2024. This cap will be set at the maximum remuneration under the Top Income Standardisation Act, in Dutch generally referred to as the “WNT”. For 2022, this maximum is EUR 216,000. The maximum remuneration under the WNT is expected to be higher in 2024, as this amount is linked to the development of contractual wage costs for the government.
As regards employees for whom a 30% ruling has been applied in the last salary payment period of 2022, the capping measure will only take effect as of 1 January 2026.
We refer also to our previous newsletter on this topic. The Dutch tax authorities have published a Newsletter on this topic as well (in Dutch) section 10: Nieuwsbrief Loonheffingen 2023 (belastingdienst.nl)