ECJ update on 150km limit for 30% ruling

Posted on 3rd January, 2015

Estimated reading time 3 minutes

The European Court of Justice ruled on 24 February 2015 that the 150 km limit for the 30% ruling is in principle not in conflict with the free movement of employees under EU law.  The Dutch National Court will now further investigate the systematic over-compensation of expenses.

As we reported in our newsletter in January, the 30% ruling which allows Dutch employers to pay a tax-free allowance to employees recruited from abroad was challenged by an employee who felt that the requirement for employees to live at least 150 kilometres from the Dutch border violated EU law.  Following the ECJ ruling, the Dutch Court is now considering whether the employee in the original case (the Sapora case) was overcompensated.  Should the Court rule in favour of the employee, other employees who appealed, or will in future appeal, against the Dutch tax office decision to turn down their application for the 30% allowance will benefit too. 

Until the decision of the Dutch Court is published, employers/employees may continue to lodge appeals in advance of the final Court decision.  Any such appeals must be made within 6 weeks of the application being refused.


Further information

For further information or to discuss any of the issues raised, please contact Rina Driece on +31 10 224 6 424.

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