Post-revision, the 30% ruling will transition from a flat 30% tax-free allowance for five years to a tiered structure: 30% for the first 20 months, 20% for the subsequent 20 months, and 10% for the final 20 months. This change will not affect current beneficiaries until 2023, except under specific circumstances, such as changing employers.
End of Partial Foreign Tax Liability from 2025 Another crucial change is the abolition of the option for partial foreign tax liability. Starting in 2025, expatriates benefiting from the 30% ruling will be subject to Dutch tax regulations for Box 2 and Box 3 income, impacting their financial planning and tax obligations.
The impending tax reforms in the Netherlands could significantly affect expatriates and their employers. Oakhill Financial Services B.V. offers expert advice and strategic planning to navigate these changes. Our focus is on risk minimization and regulatory compliance, ensuring a smooth transition for both businesses and their international employees. Contact our specialists for tailored guidance and solutions.