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The Netherlands: Proposed Cap on so-called 30% Tax Regime

By Dr Rijkele Betten

The Netherlands Government has indicated that it plans to put a cap on the 30% tax regime.

Under the regime, incoming employees – such as professional football players – are entitled for a period of 5 years to receive 30% of their salary tax-free. This is meant to assist them in coping with extra territorial expenses following their immigration into The Netherlands.

Another feature of the regime is that certain income and net wealth may stay out of the otherwise unlimited tax liability.

Over recent years, the regime has been restricted in two steps from 10 years to currently a maximum of 5 years.

The next limitation is proposed to apply the 30% exemption to a maximum income of €216,000. This amount is connected with the salary of the First Minister of The Netherlands.

Current employees, to whom the 30% tax regime applies, are confronted, for the first time, with the cap after 31 December 2025.

Some relevant issues relevant to incoming expatriates are:

  • For those that are employed before 31 December 2022, the cap will only apply after 31 December 2025;
  • The current 30% regime can be maintained in case of a switch of employer; it is not yet clear whether this continues to apply for those entitled to the transitional regime until 31 December 2025;
  • For soccer players that enter the Netherlands half-way through the year, during the first year, the (yearly) cap may effectively be applicable to a bigger part of their income than in consecutive full years.

The above is still a mere proposal and amendments to the proposal may be introduced towards the year end.

It may be expected that the proposal will be legislated in December 2022.

Dr Rijkele Betten may be contacted by e-mail at ’This email address is being protected from spambots. You need JavaScript enabled to view it.



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The editors of  the Journal Sports Law & Taxation are Professor Ian Blackshaw and Dr Rijkele Betten, with specialist contributions from the world's leading practitioners and academics in the sports law and taxation fields.

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Dr. Rijkele Betten

Consulting editor
Prof. Dr. Ian S. Blackshaw

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Maisto e Associati, Milano

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Hardwick & Morris LLP, London

 

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