Current “Transition” Period from Dutch Government for #30Rule Still Violates Dutch Law
2 November 2018
On 12 October, United Expats of the Netherlands Stichting (UENL) provided a legal document to members of the Finance Committee in reference to the #30Rule. The document showed that the lack of transitional measures for every current recipient violates Dutch law. On 26 October, the government released its revised Belastingplan with a proposal to include a transition period for some recipients of the #30Rule. This new proposal still results in a large majority of users losing significant time, and thus income, as a result of the Dutch government not keeping its original promise to the 8 & 10 year recipients of the #30Rule. UENL feels that #aDEALisDEAL should be respected for everyone.
Given the changed situation, UENL Stichting commissioned an additional legal document from the law firm Stibbe (prof. mr. T. Barkhuysen) to investigate the proposal of a 2-year “transition” in the revised Belastingplan. This new legal document shows that the current proposed transition remains insufficient. As stated in both our original and new legal document, the proposal still violates the principles of legal certainty and proportionality and, furthermore, now treats current recipients of the #30rule differently. As a result, the current proposal is counter to the legal principles of good governance.
To ensure that the Finance Committee understands the negative consequences of this plan, UENL has provided this new legal document to all members of the Finance Committee. UENL will be following the upcoming debates closely and is requesting meetings with MPs to discuss this situation further. UENL is calling for an amendment to the current proposal so that term limits are respected for all current recipients of the #30Rule.
The new document was produced in Dutch (see below). An English translation is forthcoming.
Lack of Full Transition Period For 30% Tax Rule Violates Dutch Law
15 October 2018
UENL Stichting hired the law firm Stibbe (Tom Barkhuysen) to investigate whether the Government can legally implement the proposed changes to the 30% rule without transitional measures. The resulting Legal Document, which was submitted to the Finance Committee, concludes that the proposal is contrary to the principles of legal certainty, predictability, and proportionality. Even more, the lack of transition measures is in direct conflict with the Staatssecretaris’s own published policy on transitional law in tax legislation and with the principles of due diligence and justification. As such, the proposal is unlikely to meet judicial scrutiny should it go into law and, therefore, the 2019 Tax Plan should be amended accordingly. The document was produced in Dutch (see below). An English translation is available.
As UENL spokeswoman Jessica Taylor Piotrowski notes, “It is shocking that, despite negative advice from the Raad van State, the current budget proposal does not respect the existing term limits for current recipients of the 30% Tax Rule. The proposal in the 2019 Tax Plan sends the message to future expats that promises from the Dutch government cannot be trusted. And now, this Legal Document powerfully shows that the budget proposal not only harshly impacts current recipients and their families, but moreover, it violates Dutch law and is ground for future legal action. If the government aims to produce legislation that follows good governing policy, while maintaining their reputation as a trustworthy government that both skilled expats and businesses can invest in for the long term, they will honour their commitment to thousands of expats and their families by amending the 2019 Tax Plan so that existing term limits are upheld. To that end, we have provided our Legal Document to the Finance Committee and call upon Parliament to adopt its conclusions.”