Adjustment 30 % ruling

2 months ago

Earlier this year the government introduced their plan to shorten the 30% ruling from 8 to 5 years. Originally, this rule would also apply to all existing cases, who have been running for more than 5 years and would be terminated with effect from January 1st, 2019. This month the government announced that they propose a transitional right for the rulings that will end in 2019 and 2020. Media reports that these regulations will not be restricted, but this is not yet confirmed. As far as we know now, the following seems to happen with the 30% ruling:

1. From January 1st 2019, 30% rulings will be only issued with a maximum duration of 5 years.

2. All existing schemes will be terminated on January 1st 2021 if they have been running for more than 5 years.

Rulings that started as from 2014 will be effected as a result of this unilateral curtailment of the scheme. All rulings from January 1st, 2016 will therefore have to absorb the full 3-year curtailment.

Parliament still has to approve these proposals. It is possible that there will still be changes.

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