It is very important for the business climate to give employers the leeway to attract foreign staff. It is partly for this reason that the Netherlands introduced the 30% tax facility for employees from abroad, which allows for the tax-free payment of a lump sum of 30% of the total wages. To increase the effectiveness of this facility, it has been agreed in the Coalition Agreement to shorten its maximum duration by three years. The Cabinet has proposed a transitional regime for participants whose tax benefits would end in 2019 or 2020 as a result of this measure.
As matters currently appear, there will be no transitional regime for other participants whose tax benefits would end on or after 1 January 2021 as a result of the curtailment.
Parliament is scheduled to vote on the Cabinet’s proposal on 15 November. The Senate will vote no later than 18 December 2018.
The UG will inform participants of the 30% tax facility as soon as there is clarity on whether there will in fact be a transitional regime.
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