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Human resources

Resistance against government plans to change tax facility expats

28 May 2018

The 30% facility is a tax measure that allows foreign employees to deduct additional expenses from their taxable income. The Dutch government wants this regulation to last for 5 years instead of 8 years. This does not apply only to new cases, but also to existing cases. As the bill now reads, there is no transitional arrangement.

Financial consequences

This means that the scheme ends on 31 December 2018 for employees who are in their 6th, 7th or 8th year. For employees who are in the 5th year of the scheme, it will go through in the year 2019, depending on when that 5th year started, until that 5th year has ended.

Employees in the 5th year and all "younger" cases (years 1 to 4) therefore have 3 years less tax benefit than the decision once granted by the tax authorities.

Opposition to lack of transitional arrangement

The lack of a transitional arrangement creates resistance. The VSNU requests the State Secretary to review the plans and to consider a transitional measure for existing cases. There are also individual initiatives: here you can sign the petition A deal is a deal to express your displeasure.

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