Highly educated foreign employees, including many scientists, receive 30% of their income tax-free for 8 years. But the duration of this so-called 30-percent rule is being cut back in January from 8 to 5 years. No transition arrangement was promised for people already making use of it.
The expats reacted furiously. They had counted on that tax advantage before deciding to come here and threatened to bring a court case. The academic universities and universities of applied sciences were also unhappy and feared that talented expats would avoid the Netherlands in the future.
Dividend tax
Yesterday it was announced that a transition arrangement would be implemented, but only for expats whose 30-percent rule would stop next year or in 2020. The cabinet will be using money that has become available through the about-face on scrapping the dividend tax. What this transition arrangement will look like is not yet known.
The expats consider it a step in the right direction, but they are far from satisfied, said Jessica Piotrowski from the United Expats of the Netherlands association. “Many people will not be able to avail themselves of this transition arrangement. That is not fair, a deal is a deal for everyone.” The association is seeking advice on the next steps to take. “In any case, we shall keep up the fight however we can.”
HOP, Steffi Weber
Comments are closed.