The 30% ruling can be granted for a maximum period of five years (60 months). The 30% ruling will end on the last day of the salary period after the salary period in which the employment ends (i.e. the actual employment activities cease), provided that this latter salary period falls within the 60-month period.
Each period of earlier presence in the Netherlands
is separately rounded up to full months
for the application of the discount ruling.
2.1 DISCOUNT RULING
Previous periods of stay or employment in the Netherlands will be deducted from the maximum term for the 30% ruling. However, if these periods of stay or employment ended more than 25 years prior to the start of the employee’s current employment in the Netherlands, these will not be taken into account. Periods of work in the Netherlands not exceeding 20 days per calendar year are disregarded, as are periods during which the employee visited the Netherlands for personal reasons for a maximum of 6 weeks per calendar year or a one-off consecutive period not exceeding 3 months.
Each period of earlier presence in the Netherlands is separately rounded up to full months for the application of the discount ruling. Periods within the past 25 years in which an employee was subject to Dutch wage tax will also be deducted from the maximum application period of five years, regardless the place of work and residence.
2.2 TRANSITION RULING
As of 1 January 2019, the 30% ruling may be applied for a maximum of five years, down from the previous eight-year term. A transition scheme is in place for employees for whom the 30% ruling applied on 31 December 2018. The end date on the existing notification may have changed due to the new legislation. The new end date is determined as follows:
The Dutch tax authorities will not issue a new notification. The new end date will have to be entered in the payroll administration by the employer.