MPs vote to re-examine expat 30% ruling following critical report

Parliament on Tuesday voted in favour of a proposal by left-wing MPs to re-examine the 30% tax break given to some expats when they move to the Netherlands.6937123-amsterdam-holland

‘I understand that it costs money to move to the Netherlands for work, but the benefit needs to be proportional,’ Socialist MP Arnold Merkies is quoted as saying by news agency ANP.

The ruling, which applies to expats who have specific knowledge not available in the Netherlands, effectively means they do not pay income tax on the first 30% of their salary. The ruling cost the treasury €700m in lost tax income in 2014.

The national audit office recently published a report on the ruling, stating that the impact has never been properly assessed.

Finance minister Jeroen Dijsselbloem has already said the ruling will be evaluated and ‘that could lead to reforms’, ANP said.