The Dutch State Secretary of Finance proposed to reduce the maximum term of the 30%-ruling from 8 years to 5 years.
If accepted this change should have effect as of January 1, 2019 and apply to new and existing situations. This implies that employees who enjoyed the 30%-ruling in 2018 for 5 years already will lose their entitlement as of 2019. Also the partial non-resident tax status will consequently be reduced to 5 years.
At the same time it is also proposed that extra-territorial cost can no longer be reimbursed tax-free after 5 years.
All other conditions of the 30%-ruling will remain unchanged.
More about these changes? Ask Exterus.