Expats in the Netherlands seek legal advice over tax changes Expats in the Netherlands seek legal advice over tax changes

Expats in the Netherlands seek legal advice over tax changes
27 Sep 2018

An expat lobby group is considering legal action over the Dutch government’s refusal to bring in a transition agreement for international workers faced with losing ‘30% ruling’ tax breaks from next January.

Campaigners for United Expats In The Netherlands (UNIL) had hoped the government would change its mind and back a transition period in its 2019 Budget, but the measure was not mentioned in any detail in finance ministry documents. The cut from eight to five years in which expats can claim the first 30% of their salary tax-free, is expected to save the economy some €203 million (US$239 million) next year.

But UENL claims that the decision not to have a transition period for people who expected to have the benefit for at least three more years is “ill-planned, harsh, and unfair” and will “dramatically affect the lives of thousands of expats and their families living and working in the Netherlands”. 

Spokeswoman Jessica Taylor Piotrowski told Dutch News: "Our community of members has raised nearly €20,000 (US$23,566) to fund this effort and we will continue to fight for those affected. To significantly disrupt the lives of so many families by breaking an existing deal is counter to the principles of the Netherlands and, even more, may violate Dutch and European law. A deal is a deal."

Other changes to the tax system include reductions in income tax levels and a shift to just two income tax bands. This change will take effect from 2019 and be complete in 2021, Dutch News reported

Mortgage interest deductions will also drop by 3% per year until the first bracket moves to a tax rate of 37.05. There will likewise be new limits on tax-deductible items.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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An expat lobby group is considering legal action over the Dutch government’s refusal to bring in a transition agreement for international workers faced with losing ‘30% ruling’ tax breaks from next January.

Campaigners for United Expats In The Netherlands (UNIL) had hoped the government would change its mind and back a transition period in its 2019 Budget, but the measure was not mentioned in any detail in finance ministry documents. The cut from eight to five years in which expats can claim the first 30% of their salary tax-free, is expected to save the economy some €203 million (US$239 million) next year.

But UENL claims that the decision not to have a transition period for people who expected to have the benefit for at least three more years is “ill-planned, harsh, and unfair” and will “dramatically affect the lives of thousands of expats and their families living and working in the Netherlands”. 

Spokeswoman Jessica Taylor Piotrowski told Dutch News: "Our community of members has raised nearly €20,000 (US$23,566) to fund this effort and we will continue to fight for those affected. To significantly disrupt the lives of so many families by breaking an existing deal is counter to the principles of the Netherlands and, even more, may violate Dutch and European law. A deal is a deal."

Other changes to the tax system include reductions in income tax levels and a shift to just two income tax bands. This change will take effect from 2019 and be complete in 2021, Dutch News reported

Mortgage interest deductions will also drop by 3% per year until the first bracket moves to a tax rate of 37.05. There will likewise be new limits on tax-deductible items.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER ARTICLES THAT MAY INTEREST YOU

Expats in Netherlands to see tax break cut to five years

How to get UK PAYE right for short-term business visitors

Five steps for tackling the new US overtime ruling

 

 

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