In our Newsflashes of 24 April 2018 and 30 May 2018, we already referred to the announcement of the Dutch government that it will reduce the maximum duration of the 30% ruling, notably from 8 to 5 years, as of 1 January 2019.
This proposed legislation to reduce the Dutch expat ruling will also apply to existing cases. However, on 15 October, the Dutch government announced the introduction of transitional law for existing expats that would lose the 30% ruling in 2019 or 2020 due to this measure.
The reduction to five years and the transitional law for existing expats also applies to the reimbursement of the actual extraterritorial costs and the partial non-resident taxpayer status.
The draft legislation still needs to be approved by the Dutch parliament. The voting will take place in November/December.