Specific expertise was very important before the legislation change in 2012. In order to get the 30% ruling you needed to have specific expertise that was scarce at the Dutch Labour market.
The specific expertise was based on the combined factors of:
1. the level of the education of the employee,
2. the relevant work experience of the employee,
3. the salary of the employee compared to to the salary of the employee in his country of origin.
In those days there could be a (legal) discussion about the employee’s specific expertise. For instance, an Indian senior marketing executive who attended an academic marketing education at the University of Mombai. He was hired as an assistant, with an annual salary of € 16.950. Court The Hague decided he had no specific expertise and denied him the 30% ruling.
Since the legislation change specific expertise has been simplified. There is now an income requirement to determine if someone has a specific expertise. Scientists who work at an appointed science institute and medical specialists in training at an appointed medical institute don’t even have an income requirement. Only for certain group of professionals, like professional football players, the above mentioned combined factors of specific expertise are still in effect.
The Indian senior marketing executive would also not qualify for the 30% ruling under the new rules, because he doesn’t meet the income requirements, but he would not have to go to court anymore.
Technical reference (for tax professionals): Implementation Order Payroll Tax Act, article 10eb
- 30% ruling
- Partial Non-Resident Taxpayer Status
- Extraterritorial Costs
- Calculate the 30% ruling
- Switch Employers
- Duration & Permanent check
- International School Fees
- 30% Ruling Adminstration
- Two jobs
- Payment in kind
- Payments after the 30% ruling has ended
- Exercising Option Rights
- Working abroad
- Severance Payment
- You did not apply (or unwilling employer)
- Foreign company
- Non-English Language
- Appointed Science Institutes
- Appointed Medical Institutes
- Transition 2012