Proposed Changes to Expatriate 30% Ruling: from 30% ruling to a 10% ruling

Recent developments in the Dutch Parliament regarding the Tax Budget Plan 2024 have paved the way for a significant adjustment to the 30% ruling. Please note that these changes are part of the 2024 Tax Plan Package, which still awaits approval by the Senate (Eerste Kamer).
The 30% ruling, designed to compensate foreign employees for additional expenses (so-called extraterritorial costs) incurred when working in the Netherlands, is on the brink of undergoing substantial modifications with far-reaching implications, effective from January 1, 2024.

We refer to our attached Memorandum. 30% ruling – Memorandum News – November 2023