Based on the “30% Adjustment Decision”, under certain conditions, the 30% ruling may be applied in the payroll tax return for past pay periods, in other words, applied retroactively.
The text of the decision reads:
- During the application period for a decision or a review of a decision, in anticipation of this decision, the 30% ruling may be applied in the payroll tax return during the period for which the application or review request is made. If the decision is finally not issued for the requested period, payroll tax returns made for pay periods for which the return period has expired must be restored by filing correction notices.
- The withholding agent may also choose not to apply the 30% ruling in anticipation of the inspector’s decision. In that case, payroll tax returns for pay periods for which the return period has expired may be corrected by submitting correction notices for the period in which, according to the decision, entitlement to the 30% ruling exists.
- If an issued decision is revised by issuing a new decision that covers (in part) wage periods for which the return period has expired, the 30% ruling may still be applied to these wage periods by filing correction notices.
The above assumptions only apply in case the employment agreements show that the withholding agent has granted the employee a 30% allowance and all other conditions for application of the 30% ruling are met.
This decision came into effect Jan. 1, 2024.
