20231220-KPMG_Global-Netherlands_–_Parliament_Votes_on_2024_Tax_Plan,_Scaling_Back_30_Ruling_3页_272kb

Summary of Dutch 2024 Tax Plan Adoption

• On December 20, 2023, the Netherlands' Upper House adopted the 2024 Tax Plan Package, including further scaling back the 30% ruling.

• The ruling will be reduced from its current level to 10% over five years, with the abolition of partial foreign taxpayer status, subject to transitional rules.

• This reduction means lower tax benefits for expatriate employees, resulting in higher employment income taxes compared to previous years, and potentially increased assignment costs for employers.

• The Deputy Minister promises to present alternatives by May 2024, which may influence the 2025 Tax Plan, subject to the formation of a new coalition government.

• Implementation details and full implications are available in earlier reports and should be discussed with qualified tax professionals.