Government plans to shorten 30% ruling to 5 years from January 2019

24 April 2018

The Dutch Minister of Finance Snel has announced the plan to shorten the 30% ruling from 8 to 5 years from Januari 1st 2019. This plan will be part of the Belastingplan (Tax plan) 2019 which will be presented at Prinsjesdag (Budget Day) on September 18th 2018.

In October 2017 the plan to reduce the 30% ruling from 8-5 years was already introduced in the coalition agreement of the new government. But what is new is that it is also going to be reduced for expats who already have the 30% ruling. This can have serious consequences since their net income will become lower, as Lennart Suurmond says in Dutchnews.

Also, if your 30% ruling ends, you need to be aware that you will have to declare your worldwide assets in your Dutch tax return.

Of course we hope that the government will decide to apply a transitional agreement for expats who already have the 30% ruling. But since it is already Januari 2019 that the plan will be implemented it is important to be prepared.

If you have any question about your situation, please contact us.