1 November 2018

Transition period Dutch 30% Ruling

As previously informed, the maximum term of the 30% ruling has been curtailed from 8 years to 5 years for existing and new 30% rulings. The Dutch government now announced the details of a transitional period for the group of people who would have been faced with termination of the 30% ruling in 2019 or 2020. The announcement has been made by a change in the tax plan 2019. The curtailment and the transitional period will be enforced as of 1 January 2019.

The transitional period applies to the following groups of employees who are granted with a 30% ruling:

  • If the five-year term of the 30% ruling is reached in 2019 or 2020, the employee will in principle lose the entitlement. The 30% ruling can be continued in 2019 and 2020 based on the announced transitional law (as long as the 30% ruling has not been used already for the granted duration). The 30% ruling will then end no later than 1 January 2021.
  • A term of 10 years was applicable for employees who already used the 30% ruling before 1 January 2012. The ruling will in principle end on 1 January 2019 due to the curtailment. For these cases, the 30% ruling can be continued in 2019 and 2020 based on the announced transitional law. The 30% ruling will end no later than 1 January 2021.

No transitional law is applicable when the five-year term ends after 1 January 2021. The 30% ruling then ends at the moment of reaching the five-year term.

Should you have any questions, please contact:

Brenda Jongman
Senior Immigration Specialist
Brenda.Jongman@santaferelo.com

Claudia de Jager
Immigration Specialist
Claudia.deJager@santaferelo.com

Masaki Bruijs
Immigration Specialist
Masaki.Bruijs@santaferelo.com

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