From 1 January 2024, this will be restricted for new cases. The tax-free allowance will then be divided into three steps and significantly reduced:
- during the first 20 months: 30%
- during the following 20 months: 20%
- during the remaining 20 months: 10%
Transitional arrangement
The tax plans provide a transitional arrangement for expats who are in possession of a decision from the Tax Administration no later than December 2023 and already receive the 30% tax-free allowance no later than December 2023. For this group, everything remains as it was: they can serve out the issued decision for the remaining period without changes.
Currently, the tax plan for 2024 is being debated in writing in the Dutch Senate. Hoping to positively influence decision-making, UNL has made the university's interests known to the minister. Nevertheless, HR advises managers who want to recruit personnel from abroad as of January 2024 to include this anticipated curtailment of the thirty percent facility in the recruitment process.
Update 19 December 2023
On 19 December 2023 the Dutch Senate approved the tax plans for 2024. This means that expats who receive a decision for the 30% facility from the Tax Administration as of 1 January 2024 will be subject to the new terms. In the debate, the State Secretary stressed that for current cases, everything will remain unchanged.