In our Newsflash of 30 October last, we reported on two positions taken by the Knowledge Group of the Dutch Tax Authorities (DTA). In this Newsflash, we would like to inform you on some new developments with regards to these positions.
Partial non-resident taxpayer status and free allocation
As mentioned in the previous Newsflash, , the DTA had announced a change in policy with regards to the free allocation of joint income and assets between tax partners in situations where only one of the partners benefits from the 30% ruling. As a result of the change in policy, the partner that does not qualify for the 30% ruling would no longer be able to benefit indirectly from the choice of their partner for partial non-resident taxpayer status under the 30% ruling. In some cases, this change in policy could have a significant impact.
Because this revised position was a significant departure from previous policy, which was also widely and commonly applied in practice, the DTA have unexpectedly decided not to apply this change in position until after 2026. As the possibility for taxpayers benefiting from the 30% ruling to opt for partial non-resident taxpayer under transitional law will expire on the 1st of January 2027 in any case, effectively nothing will change for tax partners where only one of the partners has the 30% ruling.
However, there are also other taxpayers who are affected by this change in position, such as privileged persons (e.g. staff members of international organisations), qualifying foreign taxpayers and so-called non-discriminants. For these types of taxpayers, the position will be applied from the 1st of January 2027. The text of the position will be reformulated to better apply to this group of taxpayers.
Income tax return for limited resident taxpayers
The other position discussed in our previous Newsflash, concerned the personal income tax return of limited resident taxpayers. This is a taxpayer who is a resident of the Netherlands for Dutch domestic tax law, but qualifies as a resident of another country for purposes of the tax treaty between the Netherlands and that country. In the position, it was described that limited resident taxpayers would have to contact their tax inspector to ask for a revised tax assessment, because the personal income tax return on the basis of the “P-form” for resident taxpayers was not properly equipped for limited residents.
After discussing this with the DTA, we are glad to be able to say that they have found a practical solution. In short, the P-form can be completed in such a way that it is no longer necessary to separately contact a tax inspector for each tax return.
We are, of course, very pleased with these positive developments.
