Breedte test

30% ruling changes and transition period made final

The tax budget 2019 has been approved by the Dutch Parliament. For many employers and international employees the most relevant section in the budget is the part about the new regulations with regards to the 30% ruling.

Original plans 30% changes

The plans of the government to reduce the maximum duration of the ruling were topic of many discussions lately. The government first intended to decrease the number of years that one can be eligible for the 30% ruling with no plans for a transitional regulation. In practice this would have meant that many international employees would lose their entitlement to the 30% ruling way (years) before the confirmed date in the decision letter from the Dutch tax authorities.

More recently the Dutch government proposed a transition period for the existing rulings after all. With the approval of the tax budget 2019, both the maximum duration of five years and the proposed transition period have been made final.

Final decision 30% changes – with transition period

As of January 1, 2019, all new 30% ruling will have a maximum duration of 5 years (instead of 8 years). More importantly the transitional regulation was approved as well. For existing rulings, the changes will only come into effect per January 1, 2021. The below overview gives an indication of when existing rules will end.

End dates existing 30% rulings

original end date in 2019 – ruling ends per the date on your decision letter
original end date in 2020 – ruling ends per the date on your decision letter
original end date in 2021 – ruling ends on December 31,2020
original end date in 2022 – ruling ends on December 31,2020
original end date in 2023 – ruling ends on December 31,2020
original end date in 2024 – ruling ends 3 years before the end date on your decision letter
original end date in 2025 – ruling ends 3 years before the end date on your decision letter
original end date in 2026 – the ruling ends 3 years before the end date on your decision letter