The current 30% facility was evaluated in 2017. In response to this evaluation, the cabinet announced in April that it was planning to reduce the term of the 30% facility from 8 years to 5 years as from 1 January 2019. The reduction of the term will also apply to employee who are already making use of the 30% facility. If the plans of the cabinet are accepted unchanged by the Dutch Senate and House of Representatives, this will have the following consequences as from 1 January 2019 for employees who now have a 30% facility:
- in the case of employees to whom the 30% facility was granted before 1 January 2014, the facility will end as from 1 January 2019;
- in the case of employees to whom the 30% facility was granted between 1 January 2014 and 1 January 2019, the term will be reduced from 8 to 5 years;
- the option for partial non-resident tax liability is linked to the duration of the 30% facility. The period during which the option for partial non-resident tax liability can be made will also, therefore, be reduced. As soon as the term of the 30% facility ends, the domestic tax liability will be revived in box 3 and you will therefore be confronted with the investment yield tax. In the year in which the 30% facility ends, the box 3 levy will be calculated in proportion to the time elapsed based on the values as from 1 January that year.
The planned changes will be included in the Tax Plan 2019, which will be announced in September. Therefore, there will only be clarity about the exact scope of the announced plans in the autumn.
If you have any questions or comments, please feel free to contact our office.