Contrary to earlier reports transitional provisions will be made for expats already living in The Netherlands and who would have stopped being eligible for the 30% ruling in 2019 or 2020.
On Prinsjesdag, the day on which the Minister of Finance traditionally proposes the national budget, the Dutch government announced that the term of the 30% ruling will be shortened from eight to five years. This reduction would not only have applied to new expats but also to expats already living in The Netherlands. Because of the decision to continue to levy dividend tax additional measures to improve the national business climate will be introduced by the government. The transitional provision for the 30% ruling is one of them.
The cabinet plans to propose the details of the intended transitional provisions to parliament on October 26th.
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