The transition period for ‘old’ 30%-ruling holders will end per the end of this year. This means that many employees will lose the 30%-ruling per January 1, 2021. We are happy to explain the most important tax consequences and tax planning opportunities.
The 30%-ruling was originally intended as a means to attract skilled foreign labour to the Netherlands. In recent years, however, questions have been raised as to the overall effectiveness, as well as to the growing complexity of the ruling. What exactly is the 30%-ruling and for whom is it applicable? In this introductory article I aim to present a practical overview.
De 30%-regeling is oorspronkelijk bedoeld om Nederland aantrekkelijk te maken voor hoogopgeleid buitenlands personeel. De laatste jaren worden er echter steeds meer vraagtekens gezet bij de effectiviteit en de complexiteit van de regeling. Maar wat is de 30%-regeling precies en op wie kan je deze toepassen? In dit verdiepingsartikel ga ik hier verder op in.
Hopefully, the Corona measures that the Netherlands and the rest of the world are taking will be effective enough to also deal with the financial consequences of this pandemic. Some of these measures do not directly relate to tax, but they do have immediate tax and social security consequences. Even though this might not be your first point of concern, it is important to keep this in mind.
The Court of Appeal in Amsterdam decided in October 2019 that an individual who was hired from abroad is still eligible for the 30%-ruling after having lived in the Netherlands for more than two years.
At the end of October 2018 the text of the new proposed transition legislation has been published regarding the decrease of the 30% duration from 8 to 5 years per next year.
Moderately good news for many expats that felt justifiably cheated by the Dutch government since their 30% tax ruling duration was about to be shortened from 8 to 5 years on the 1st of January 2019 without any transition period. Now, the plan is that existing cases get a transition period anyway.
Our government intends to reduce the duration of a tax scheme for expats, the so-called 30% ruling, from eight to five years as of January 1, 2019. The unfairness of this proposal lies in that this decrease to 5 years will apply to both new and existing cases.
Het kabinet is van plan om de looptijd van een fiscale regeling voor expats, de zogenoemde 30%-regeling, per 1 januari 2019 te verkorten van acht naar vijf jaar. Het oneerlijke van dit voorstel is dat de verkorting gaat gelden voor zowel nieuwe als bestaande gevallen.
To avoid tax risks, it is important to check the 30%-ruling for employees lived within 150 km from the Dutch Border. Employees to whom the 30%-ruling was granted before 2012 have to meet the 150 km border criteria after 5 years!