150 km condition

/150 km condition

150 km condition

The 150 km condition is an important condition of the 30% ruling.

In order to qualify for the 30% ruling the employee has to live at least 150 km of the Dutch border in at least 16 of the last 24 months prior to his employment in The Netherlands.

However, there is an exception to this 150 km condition.
Should the employee had a previous employment in The Netherlands:
– that started within the last 8 years,
– where he lived at least 16 months of the last 24 months of the Dutch border prior to that previous employment,
then the employee does not have to qualify again for the 150 km condition.

Another exception of the 150 km condition is reserved for employees performing research for their doctorate promotion.

The EU Court decided that this 150 km restriction is allowed within the EU, unless there would be a systematically overcompensation for employees with the 30% ruling in comparison to employees who receive only a reimbursement for their extraterritorial costs.

The Dutch Supreme Court followed up and decided there is no systematically overcompensation and therefore no conflict between the 150 km condition and the EU law regarding Freedom of Movement for Workers.

In another case Court Noord-Holland decided that the legislation change of 2012, in this case the 150 km condition, is a valid reason to end the 30% ruling immediately if the employee does not meet this new condition.

Technical reference (for tax professionals): Implementation Order Payroll Tax Act, article 10e, section 2 and 4.