23 August 2018
Changes in Dutch 30%-ruling coming up
The Dutch government intends to modify the 30% facility for incoming international employees, the so-called 30%-ruling, by reducing the duration of this tax exemption to five years from the original eight years, effective from 1 January 2019. This change will apply to both current and new recipients who already use the tax advantage.
Over the past period, various companies, knowledge institutions and trade associations objected to the fact that there is no transitional period for the shortening of the 30% ruling from 8 to 5 years. They also had the chance to explain their objections during four sessions organized by the Ministry of Finance.
Even after those sessions, the responsible State Secretary Menno Snel, is upholding his proposal. He wrote this in a reaction to questions posed in the Dutch Lower House which was sent to the Dutch Lower House on 6 July. At this time, it is still uncertain if the Lower House agrees with his answers as were giving in the briefing and whether it will support his proposal.
During the opening of the new parliamentary year (the so-called Prince’s Day when the government budget is presented) the official ‘Tax Plan 2019’ will be sent to the House of Representatives. This will include all proposed changes regarding the 30%-ruling.
After a plenary debate about all planned tax changes for 2019, a vote will follow in both Chambers of Parliament. Consequently, the King approves the new law. When the official journal of the government publishes the changes of the 30%-ruling, the formal decision-making comes to an end.
From the 1 of January 2019 the changes will be effective.
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