Dutch government will postpone the cuts to the 30% reimbursement ruling (the ‘30% ruling’) for two years. In other words: those employees receiving the tax benefit and who would have lost it in 2019, will continue to receive it until 2021, when the duration of the benefit will be cut from eight to five years.
The 30% ruling is a Dutch tax facility for foreign employees that work in the Netherlands. If certain conditions are met, the employer is allowed to pay the employee 30% of his salary as a tax-free allowance. The tax-free allowance is considered a compensation for the extraterritorial costs for working outside the employee’s country.
The news of delaying the shortening of the 30% ruling comes after the decision not to scrap dividend tax and thus redistribute the money that this measure saves to improve the business climate.
More about this subject?
Irene Francken-van der Ven
T: +31 20 760 8814