30% ruling for expats less beneficial, update

25 June 2018

As from 1 January 2019 the 30% rule, which allows an expat to benefit from 30% untaxed income, will be considerably reduced. The new ruling will be limited in time to a maximum of 5 years instead of the current 8 years.

Moreover, the authorities plan to limit existing cases as well. Meaning that if you are in your 5th year already, you may have to pay a considerable amount of extra tax next year or your employer may be confronted with a considerable amount of extra employer’s expenses. Which case is applicable to you, will depend on the agreement concluded between you and your employer.

We from LIMES international clearly regret this decision to apply the new legislation to existing cases. We are currently defending the position that the limitation of existing cases is an outright interference with legal certainty.

We are not alone. Municipalities like Eindhoven and companies like Shell, Heineken and ASML have strongly objected to this together with more than 35,000 individual expats. We sincerely hope the Staatssecretaris will be open to criticism in view of the overwhelming number of complaints that already surfaced.

We expect to get a more definitive conclusion on this matter next September and will keep you informed.

For more information, please contact Huub Kapel at huub@limes-int.com.