Background
A recent court decision (ECLI:NL:RBNHO:2024:7175) has brought clarity to the eligibility requirements for the 30% ruling in the Netherlands. This tax benefit, designed to reimburse extraterritorial expenses for employees hired from abroad, hinges on specific criteria. The case at hand focused on whether the employee could be classified as “hired from abroad.
Key Facts of the Case
The employee, originally from India, moved to the Netherlands in 2019 to pursue higher education. After completing his studies in September 2020, he stayed in the country under a search year visa for highly skilled migrants. He worked for various employers in the Netherlands before signing a fixed-term employment contract in late November 2021. The central issue in the case was whether the employee could be considered “hired from abroad” at the time the contract was signed.
Court’s Decision
The court ruled that the employee did not qualify as “hired from abroad.” The employee had been living in the Netherlands since 2019 and was registered in the Basisregistratie Personen (BRP) from October 2019. His family joined him in June 2020, and they established a stable life in the Netherlands. Additionally, the employee had not returned to India since his arrival and had been working for multiple employers in the Netherlands before the employment contract with his current employer was finalized. The court considered these factors and concluded that the employee was not recruited from another country when he signed the contract.
Expert Tax Advice Required for Complex “Hired from Abroad” Criteria
This case underscores the complexity of the “hired from abroad” requirement for the 30% ruling, especially when the employee is already living in the Netherlands. Determining whether an employee qualifies for this tax benefit can be challenging without professional guidance. If you are facing a similar situation, TACS Solutions can help you with the 30% ruling applications, ensuring compliance with all the necessary requirements.
