The Dutch Supreme Court (Hoge Raad) today issued a decision, concluding that the 150-kilometer criterion in the “30% ruling” is not contrary to EU law. This judgment means that employees who resided more than 150 kilometers from the Dutch border, during at least two-thirds of the 24 months preceding the commencement of their employment in the Netherlands, are eligible for the benefit referred to as the “30% ruling.”
The “30% ruling” involves a fixed allowance paid to compensate for the costs of a temporary stay outside the country of origin (extraterritorial expenses). As of 1 January 2012, only employees who resided more than 150 kilometers from the Dutch border during at least two-thirds of the 24 months preceding the commencement of their employment or secondment in the Netherlands are eligible for the 30% ruling.
Read a March 2016 report prepared by the KPMG member firm in the Netherlands: Supreme Court judgment: 150-kilometer criterion in the 30% ruling is not contrary to EU law
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