Posted on 30/01/2018 by Hang Nguyen

The Ministry of Finance recently evaluated the 30%-ruling for expatriate employees. The Ministry of Finance concluded that the actual extraterritorial costs usually amount to approximately 20% instead of 30% of their taxable income. One of the recommendations from the government coalition agreement is to reduce the maximum period the 30% ruling can be applied. Pursuant to the announcements of the new Cabinet, the aim is to reduce the maximum period of validity from 8 to 5 years as from 2019. Currently, it is not clear if 30%-rulings granted before 2019 will be grandfathered.