The Dutch tax authority has clarified how to calculate the annual salary threshold under the expatriate tax scheme when an employee turns 30 during the year, requiring a pro-rated combination of the reduced and regular salary standards.
The Netherlands tax authority published a position document (KG:041:2026:008) on 9 November 2026. It explains how to test the salary standard for an employee who turns 30 during the year.
Under the expatriate scheme, an employee needs specific expertise. Article 10eb, paragraph 1, of the Implementing Decree on Wage Tax 1965 (UBLB 1965) measures that expertise by the wage level in Section 3.3.1 of the Income Tax Act 2001 (Wet IB 2001). If the wages exceed the salary standard, the employee meets the requirement.
A lower standard for younger employees
Employees under 30 with a Dutch master’s degree from higher education, or an equivalent foreign degree, qualify for a lower standard under Article 10eb, paragraph 2, of the UBLB 1965. The general minimum salary is EUR 48,013. For these younger employees, the reduced minimum is EUR 36,497.
The problem in the year of turning 30
Take an employee who is under 30 in January and turns 30 on 30 June. The reduced standard applies for the first six months. The regular standard applies for the last six months.
The UBLB 1965 does not say how to test the standard in that year. It only requires the standard to be met on an annual basis. Other regulations and case law offer no guidance either.
How the annual standard is calculated
The tax authority fills the gap by recalculating both standards in proportion to the time each one applies. It then adds them together into one annual figure. For this employee, the annual standard is 6/12 of the reduced standard plus 6/12 of the regular standard. At current figures, that comes to EUR 42,255. The total salary earned during the calendar year is compared against that amount.
If the total falls short, the employee no longer has specific expertise. Under Article 10ee of the UBLB 1965, the scheme then ends at the start of the year the employee turns 30.
There is one exception. If the employee still meets the reduced standard until the end of the month of the 30th birthday, the scheme runs until the end of that month. This follows the Decree on Wage Taxes, Extraterritorial Employees, 30% Scheme. The test compares the salary earned from 1 January to the end of that month against the reduced standard for the same period.
