Ministers are rethinking 30% ruling plan after dividend tax blow
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Ministers are rethinking 30% ruling plan after dividend tax blow

Photo: DutchNews Photo: DutchNews

SINT MAARTEN/THE NETHERLANDS – Sources in The Hague have told the Telegraaf that there are signs the government will water down its planned changes to the 30% ruling for international workers.

The Telegraaf says the planned cut from eight to five years may not be as severe as the government planned, and the five-year limit may be made longer.

Other sources have told DutchNews that that the government may introduce a one-year transition period to temper the switch for current beneficiaries who will lose hundreds of euros a month from January 1.

The finance ministry has declined to comment on the claims while the talks are ongoing. The four coalition parties are currently renegotiating two aspects of the 2019 tax plan which affect the Netherlands’ reputation as a good place to do business.

One is the controversial decision to scrap the tax on dividends, following Unilever’s decision not to move to the Netherlands, the other is the 30% ruling.

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White collar union VCP, the FNV union federation, several opposition political parties including the Socialists, employers’ organisations, universities, multinationals and tech firms have all called on the government to rethink its decision.

Research by the International Community Advisory Panel shows the plan will lead to a brain drain, damage the reputation of the Netherlands abroad and have a major financial impact on thousands of expats.

Some 54% said they had less trust in the government and 75% said they were told about the ruling by their employer.

Meanwhile, international workers in the Netherlands, who are fighting to change the government’s mind on plans to cut an expat tax break, have commissioned law firm Stibbe to look into the decision not to have a transition period for current beneficiaries.

UENL says it plans to send the legal opinion to the finance committee by October 15. (DutchNews)

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