Term of 30% facility shortened to 5 years | Deloitte Nederland


Term of 30% facility shortened to 5 years

The 1 January 2019 change applies to both new and existing cases.

2 May 2018

On 20 April last, the State Secretary for Finance offered the House of Representatives the government’s response to the evaluation of the 30% facility. This newsflash informs you about the government’s main conclusions.

Reasons for government’s response to evaluation of 30% facility

In the first half of 2017, the Ministry of Finance commissioned an evaluation of the effectiveness and efficiency of the 30% facility. Suggestions have now been made for adjustments to the 30% facility, while various organisations and people were requested to respond to the evaluation in writing too. The government’s response discusses these recommendations and comments.

Main conclusions on the 30% facility

The government endorses the recommendation to shorten the term of the 30% facility as from 1 January 2019, as part of the 2019 Tax Plan. Shortening of the term likewise applies to the partial taxability (optional scheme that offers employees a choice to be considered a non-resident taxpayer for the taxation in box 2 and box 3). Instead of the 30% facility, employers can opt for a tax free reimbursement of the actual extraterritorial expenses. Again, this option will be limited to five years.

Remarkably enough, shortening the term to 5 years likewise applies to employees who already avail themselves of the 30% facility. Hence, the remaining terms of the existing 30% facilities need to be reset as of 1 January 2019.

Other recommendations will not be followed

The government has chosen to maintain the 150 kilometre criterion. Suggestions to increase or replace it (e.g., with the actual distance) are not followed up for reasons of simplicity. According to the government the recommendations involving a cap on the salary or the differentiation of the fixed sum would affect the simplicity and practicability, which is why they will not be followed either.


Although the government response contains a concrete proposal to cut down on the 30% facility, it does endorse the importance and the objectives formulated in respect of the 30% facility. This would, for now, seem to guarantee the continued existence of the (shortened version of the) 30% facility. The practice is still uncertain about how the shortening of the term will affect existing cases. It depends on the outcome of the substantive debate on the 2019 Tax Plan.

Source: Brief staatssecretaris van Financiën d.d. 20 april 2018, 2018-0000061269

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