NewsCase StudiesEvents

30% ruling from 8 to 5 years as per 1 January 2019

Also in the news...

Confined establishments in Great Britain

Lists of confined establishments in Great Britain, Jersey and the Isle of Man approved to export or move ungulates to the EU and Northern Ireland.

Republic of Belarus sanctions: guidance

Guidance on the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019

UK-New Zealand Joint Committee ministerial statement

Details of the Joint Committee held as part of the United Kingdom-New Zealand Free Trade Agreement on 8 May 2024.

Tips for Success in the German Market:

Avoiding Pitfalls and Understanding German Consumer Needs

UK-China Intellectual Property Newsletter

At the end of every month we publish a newsletter covering recent intellectual property (IP) developments in China.

Jeroen Mijlof

Jeroen Mijlof

Dutch Tax, Accounting and Brexit Expert

> Ask me a question

30% ruling from 8 to 5 years as per 1 January 2019

Back to News

The maximum amount of years the 30% ruling may apply has been reduced from 8 to 5 years as per 1 January 2019. The 30% ruling is essentially a tax credit for expats working in the Netherlands to compensate for the additional costs expats usually make for working away from their home country. By applying the 30% ruling the employer can pay out 30% of the salary tax free. Therefore, the reduction can result in significantly lower net wages for expats with the 30% ruling.

The reduction applies to current and new 30% rulings. However, for current rulings, i.e. rulings granted before 1 January 2019, there is transitional law for a period of 2 years. The transitional law results in the following for rulings granted before 1 January 2019:

End date on ruling in year:

New end date of ruling

2019 or 2020

End date as stated on ruling (no changes)

2021, 2022 or 2023

31 December 2020

2024 or later

End date as stated on ruling minus 3 years

 

Practical implications:

  • Employers need to check whether they should stop applying the 30% ruling sooner than expected for their employees and adjust wage tax withholdings/payments accordingly;
  • Employees need to check if their 30% ruling will have a new end date and act accordingly to prevent unpleasant financial surprises;

Should you need any assistance, please contact us

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.