The Dutch government announced plans to introduce transitional measures with respect to the proposed changes to the 30% ruling. In a political twist this week, the Dutch government announced that it was cancelling its plans to abolish the dividend tax. As a result these transitional measures can be expected.
30% ruling changes are postponed to 2021
The announcement states that the maximum period of the ruling will (still) be reduced from 8 to 5 years, but that a transitional measure will be in place for the years 2019 and 2020. This would mean that employees whom were set to be affected by the proposed reduction will no longer lose the ruling per January 1, 2019. The transitional measure would end per January 1, 2021.
Even though the final wording of the proposed legislation and related transitional measures is unclear at this stage, the transitional measure is a welcome first step which will allow employers and employees to plan accordingly. In spite of this, the (timing of the) reduction of the maximum period remains questionable given the Netherlands desire to remain an attractive destination for companies and investors in combination with global developments. In that light, further evaluation of the measure should be done.
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