The 30% allowance will then be capped if the tax base is higher than this amount. A transitional arrangement is hereby established for incoming employees for whom the 30% ruling is applied in 2022. For them, the capping will only apply as of 1 January 2026. For employees starting in 2023 no transitional arrangement will take place.
For newly incoming employees with an annual salary of more than € 216.000, it may be attractive to have the employment started by December 2022 at the latest. The transitional arrangement can then be used for a further two years.
If you have any questions about any of these changes, please contact us. We will be happy to advise you.