Amendment of the 30% facility | Deloitte Netherlands


Amendment of the 30% facility

On 26 October 2023, the House of representatives passed an amendment to the 30% facility. This significantly changes this tax benefit for expatriates and their employers. Another amendment provides for abolition of the partial non resident taxpayer scheme effective from 1 January 2025.

2 November 2023

The Netherlands adjusted the 30% facility for expats recent years, amending aspects such as the duration and eligibility criteria. Another notable amendment, set to come into effect on 1 January 2024, is the introduction of a wage cap for the 30% facility. This will be set at EUR 233,000 (with annual adjustments).

The most recent amendment, adopted by the House of Representatives on 26 October 2023, focuses on a gradual reduction of the 30% facility over its 5-year duration, divided into three 20 month periods effective from 1 January 2024:

  1. Initial 20 months: During the first 20 months, the maximum reimbursement will continue to be 30%.
  2. Subsequent 20 months: During the following 20 months, the maximum reimbursement drops to 20%.
  3. Final 20 months: During the last 20 months, the maximum reimbursement further decreases to 10%.

Transition period

There will be a transition period for employees who are already using the 30% facility in December 2023. These employees will continue to be governed by the existing legislation (including the wage cap). If the term of the facility is shorter than 60 months, the same percentages and periods apply.

Partial non-resident taxpayer status abolished

Another adopted amendment provides for the abolition of the option for partial non-resident tax liability effective from 1 January 2025. Expats with a 30% facility currently have the choice to be treated as a partial non-resident taxpayer and as such they are considered foreign tax residents for the purposes of income from a substantial interest (box 2) and income from savings and investments (box 3). Hence, income from foreign assets do not have to be reported in the Netherlands. However, an expat employee can only opt for the ‘partial non-resident taxpayer’ status as long as the 30% facility is in effect. A transitional rule will be applicable, allowing the expats to use this status until the end of 2026, subject to certain conditions.

Although these changes are still awaiting final approval by the Dutch Senate, outgoing Minister Adriaansens of Economic Affairs and Climate policy has already expressed her concerns regarding the changes in the 30% facility. She hopes the Dutch Senate will have a meaningful discussion prior to its decision.

Deloitte assistance

We understand the complexities involved in implementing these changes, and we are happy to provide assistance and guidance in managing these aspects effectively. Our team of experts is available to offer advice, support, and solutions tailored to your specific needs, ensuring a smooth transition in accordance with the new regulations.

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