As from 1 January 2019 the duration of the 30% ruling has been reduced from eight to five years. There is a transitional arrangement for the employees who were already granted the 30% ruling before said date. For those employees we strongly advise to verify this, determine the end date according to the following schedule and to implement the new date in the salary administration.
|End date on 30% ruling issued before 1 January 2019||New end date|
|2019 or 2020||Equal to the end date on the original 30% ruling notification|
|2021, 2022 or 2023||31 December 2020|
|2024 or later||The end date on the 30% ruling notification minus three years|
This means that the 30% ruling may terminate as per 1 January 2021. This will impact the net income and change the partial non-resident tax position. Tax consultation is advisable.
The transitional rule does not apply to employees with a 30% ruling start date after 1 January 2019.