On December 18th, 2018, the Dutch Senate (Eerste Kamer) approved the 2019 Tax Plan. The new 30%-Rule is part of this 2019 Tax Plan. The maximum duration of the 30%-Rule goes from 8 years to 5 years. Transitional rules apply for current 30%-Rule holders until January 1, 2021.
The new legislation comes into force on January 1, 2019 and it means the following with respect to the employee’s 30%-Rule duration:
1. If the original end date of the 30%-ruling of the employee is in 2019 or 2020, there will be no impact and the original end date remains unchanged;
2. If the original end date of the 30%-ruling is in 2021, 2022 or 2023, the employee will lose the 30% ruling per January 1, 2021;
3. If the original end date of the 30%-ruling is in 2024 or later, the employee will lose the 30% ruling 3 years earlier than expected.
We hope this clarifies the current transition arrangement that has now been approved by the government!