The Netherlands: Vote on ‘30 Percent’ Preferential Tax Treatment Rule Expected Soon

Employers are reminded that the ‘30 percent’ preferential tax treatment provided to eligible highly skilled foreign workers is likely to be restricted from January 1, 2024, with the Dutch upper house of parliament set to vote on the issue on December 19, 2023 (the lower house approved the legislation in October 2023). Employers are also reminded that transitional arrangements will apply to employees who already received compensation in the last period of 2023 for which these employees were in possession of a 30 percent ruling decision. Further details of the transitional arrangement remain to be confirmed.