Dutch 30% ruling reduced to 5 years. What can you do?

Thursday 4 October 2018 - The term of the 30%-ruling will be reduced from 8 to 5 years. This amendment was already announced by the Dutch government in the Spring of 2018, but the actual amendments in the relevant laws have now been published as part of the 2019 tax plans. The amendments will apply as of the 1st of January 2019.

Consequences

According to the proposed amendment, the reduction of the maximum validity period will affect both new and existing 30% rulings. There will be no transitional legislation. This means that the term of all 30% ruling will be reduced with 3 years. Employees who have already benefited from the ruling for (more than) 5 years, will lose their ruling as from 1 January 2019.

Partial non-residency

The 30%-term reduction from 8 to 5 years will also apply to the partial non-resident taxpayer status for Dutch income tax purposes. On the basis of this status, qualifying expats do not need to declare certain income and assets in the Dutch income tax return (box 2: income from substantial interest and box 3: income from savings, equity and properties).

The loss of the partial non-resident status may impact the annual tax liability on assets (‘Dutch wealth tax’). Especially when you have share interests in foreign companies or investments in- or outside the Netherlands, please feel free to contact us. We may help you to structure your assets in order to reduce your tax liability.

Want to know more?

Do you want to know what the possibilities for your situation are? Feel free to contact Alexander Rasink, Partner Paye Advice (via email or telephone: +31 (0)88 277 16 15) or Roland de Jonge, Director Tax Advice (via email of telephone: +31 (0)88 277 14 36). They will be happy to help.

What may be of interest to you:

  • Mazars 30%-Ruling Risk Analysis: how to optimize the 30%-ruling, prevent 30%-ruling loss, limit tax exposure
  • Mazars Global Mobility Audit: take control of your cross border tax and compliance, risk analysis, optimization solutions

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