ITEM Cross-border news

30% rule gets transitional right after all


In the Belastingplan 2019 (Dutch Tax Plan 2019) Amendment Memorandum, the State Secretary for Finance announced that the reduction of the 30% ruling from 8 to 5 years will be granted a transitional period after all. The new duration of the ruling depends on the current end date.

The 30%-rule offers employees from abroad the possibility to receive a maximum of 30% of their salary tax-free under certain conditions to compensate for extra costs that these employees incur to be able to work in the Netherlands. As of 1 January 2019, the duration of this ruling is shortened from a maximum of eight years to five years.

Transitional rights
The earlier version of the tax plan did not include a transitional period. However, there was an exception for school fees for the reimbursement of international schools. This exception has become superfluous due to the transitional law. The new duration of the ruling depends on the current end date. If it is in 2019 or 2020, then it remains unchanged, if it falls in 2021, 2022 or 2023, then the new end date will be 31 December 2020. All later end dates will be shortened by three years.

This news item was published by the Institute for Transnational and Euregional cross-border cooperation and Mobility / ITEM in the context of news regarding cross-border labour.


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