The Supreme Court has on August 9th, 2013, referred questions to the Court of Justice of the European Union on the 150-kilometer border criterion for the application of the 30% rule. Under that scheme, a Dutch employer can give a flat fee to a certain untaxed attracted from abroad employee of short 30% of the salary. To prevent unintended use that scheme from 1 January 2012 tightened in the sense that only workers who live more than 150 kilometers from the Dutch border are still eligible for the ruling. Workers living in another Member State within 150 kilometers of the border can get only their actual extraterritorial costs paid free of tax.
Those employees will be fiscally treated differently than EU workers outside that boundary. In this case is – among others – the question is whether that difference in treatment a prohibited restriction on the free movement of workers within EU.
Because the answer to that question is uncertain, the Supreme Court referred this question to the Court of Justice. For an UPDATE, please check this article.
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