In certain situations, there is no right to the maximum 60-month term of the 30% ruling, namely:
- As a result of previous residence or employment in the Netherlands (discount scheme); or
- When the 30% ruling is not applied for within four months of the commencement of employment.
The order is then issued not for 60 months, but for a shorter duration. The question then arises of how to deal with the 30/20/10% ruling. It has been confirmed by the Inland Revenue that cuts are being made at the back end. The shortened portion of the term will be the first to go from the period of entitlement to at most 10%.
Example: An employee has been granted the 30% ruling for 2 years due to previous stay of 3 years in the Netherlands. In this case, the employee is entitled to 20 months of maximum compensation of 30% and 4 months of maximum compensation of 20%.
