Shorter duration for the 30 percent-ruling
The Council of Ministers (Ministerraad) has agreed to the proposal put forward by the State Secretary of Finance (staatssecretaris van Financiën) to shorten the duration of the so-called 30% Ruling from eight to five years as of 1 January 2019.
Provided a number of specific conditions are met, employers may pay a maximum of 30% of the salaries of their expat employees working temporarily in the Netherlands tax free. The ruling is designed to compensate the additional expenditure, such as travelling and housing costs, and living expenses, that these people incur in order to be able to work in the Netherlands.
The maximum length of time in which people qualify under the ruling as new arrival employees is currently eight years. The duration of the ruling is expected to be cut back to five years as of 1 January 2019.
At present, it does not seem likely that a transitory allowance will be made for people who already benefit from the ruling.