2016-04-08-KPMG_Global-The_Netherlands_–_High_Court_Rules_on_150-Km_Criterion_for_30_Ruling_2页_65kb

Supreme Court Ruling on the 30% Ruling Eligibility

On March 4, 2016, the Supreme Court of the Netherlands upheld the 150-kilometer criterion for the 30% ruling, confirming it is not contrary to EU law, provided there is no systematic overcompensation. The ruling clarifies that only employees residing more than 150 km from the Dutch border for at least two-thirds of the preceding 24 months are eligible for the allowance, which compensates for extraterritorial expenses.

Key implications:

• Cross-border workers near the border (e.g., from Belgium, Luxembourg, or German/French regions) may no longer qualify if they do not meet the distance and residency requirements.
• Employers and workers should review their situations for compliance and potential reimbursement of uncovered costs on a non-taxable basis.