The government has proposed that from 1 January 2019 the maximum duration of the 30% facility will be cut from eight to five years. If the proposal will become effective law, this will apply to both new and existing users. Because no transition arrangements have been proposed, in six months’ time some expats will see a significant reduction in their income or employers will have to remit more wage tax.

Expats please note!

Are you an assignee making use of the 30% facility? Check carefully until when you are entitled to make use of the scheme. If you have been using the 30% facility since 1 January 2014 then the reduced duration of the scheme to five years means that your entitlement might possibly end on 1 January 2019 - and not on the original end date of 1 January 2022. Because there are no transition arrangements we recommend that you check as soon as possible how this will affect your income in 2019.

Why the cut?

An evaluation of the 30% facility showed that most people use the scheme for no more than five years. Those who do use it for longer than five years often also remain in the Netherlands beyond that period. Another factor also taken into account in the decision was that a period of five years generally applies in most of the neighbouring countries that have a similar scheme. The government’s decision to reduce the maximum duration of the 30% facility was based on both these factors.

About the 30% facility

Under the 30% facility employers are entitled to provide staff recruited from abroad with a tax-free allowance to cover additional expenses, such as travel costs, housing costs and the cost of living. This can be done by providing 30% of the salary, including the allowance, tax free. This often provides an attractive benefit which - when it comes to an end - has a significant impact on income.

Please contact Saskia Hemmes: Dit e-mailadres wordt beveiligd tegen spambots. JavaScript dient ingeschakeld te zijn om het te bekijken. if you would like to know more about the 30% facility.