The District Court of The Hague recently ruled that if an employer has not applied the 30%-ruling in the salary administration, the employee cannot claim the tax free 30% allowance after all by correcting his wages in the income tax return. The 30% allowance is only tax free if the employer has “designated” it as final levy wage under the work-related costs scheme. Now that the employer has not applied the 30%-ruling in the salary administration, this means, according to the court, that the employer has not designated the allowance and the 30%-ruling cannot be applied in the income tax return. An interesting question is whether the outcome would have been different if the employer had recorded the “designation” in its administration in a different way.

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