In our previous SAS Alert we have informed you that the Dutch State Secretary of Finance informed the Dutch Parliament that transitionary rules would be introduced for those employees whose 30% ruling would prematurely end in 2019 or 2020 as a result of the earlier announced reduction of the maximum term of the 30% ruling to 5 years.

We can now confirm that the Dutch State Secretary lived up to his words: transitionary rules are included in a second note of amendment to the Tax Plan of 2019.


The employees whose rulings have an original end date between 1-1-2019 and 31-12-2023 or, put in another way, whose first date of employment in the Netherlands was before January 1, 2016, become eligible for the transitionary rules.

The employees whose 30% ruling would end in 2019 or 2020 will still be able to use their ruling for the full term. The employees whose 30% ruling would end in 2021, 2022 or 2023 will only be able to use their ruling until December 31, 2020.

For example: If a 30% ruling has been granted for the period of 1-7-2014 until 1-7-2022, this ruling will end on December 31, 2020. A total duration of 6.5 years instead of 8 years. Please note that the Dutch Parliament still has to agree with the amendment.

We will keep a close eye on the developments and will let you know immediately when more news will become available. Please contact us to find out whether you or your employees will become eligible for the transitionary rules.

 

October 2018