UENL Political Update

TOPIC: POLITICAL UPDATE

DATE: 10 July 2018

ACTION FOR YOU: ANSWERS TO MP’s QUESTIONS

Members of the UENL Community: 

As you might recall, following the Finance Committee meeting on 31 May, the MPs assembled nearly 13 pages of questions directed to the State Secretary – all of which were associated with the proposed changes to the 30% rule. Additionally, in the month of June, employers and employees received a letter from the Belastingdienst informing them of a potential reduction in the term length of the 30% rule to 5 years. UENL followed with an open letter to Menno Snel on the 27 June to ensure that our position is clear and to demonstrate that we continue to do our utmost to engage in a diplomatic and reasoned discussion. Along with this, we participated in a meeting at the Ministry of Finance on 2 July where we – yet again – expressed our severe concerns over the lack of transitional regulation in the current proposal and the negative impact that such a proposal may yield.

This past week, the answers to the MP’s list of questions were published. As a council, we have reviewed the responses carefully and spoken with our trusted advisors to ensure that our interpretation of the responses is accurate.

All told, the document is quite detailed and yet – at the same time – does not (in our view) provide any indication as to whether or not the State Secretary has actually realized the impact of this proposed change. In as much, it is neither particularly in favor of our position nor does it firmly condemn our position.

Briefly, the response frequently refers to data in the Dialogic report as justification for the proposal. It notes the numerous concerns by members of our community as well as numerous organizations in the NL – many of whom have come out in support of our efforts – but does little to engage these concerns in any nuanced way. To be fair, however, this did not surprise us. We did not expect that an abrupt direction change would occur at this stage of the process – instead, we expected to see their effort to hold to the coalition agreement – which is exactly what we see.

We realize that many of the members of our UENL community may wish to read these published responses. The complete document, available in Dutch, can be accessed here.

We also recognize that many members of our community may feel more comfortable with an English version. To that end, I have created a summary (download PDF here) that focuses exclusively on the key responses as they relate to our request for transitional regulation. I have deliberately avoided any content which is associated with the merits of the 30% ruling (also part of the MPs questions) since this is not our focus at UENL. We are focusing solely on transitional regulation, not the policy itself.

Importantly, I would ask that – when reviewing this summary – you read this within the lens it was drafted. Specifically, it is my firm intention to be impartial at this stage. Please read this summary with a neutral view and try not to draw any overly positive or negative conclusions since – in truth – it is impossible to draw any conclusions from this response.

As a reminder, on 18 September (Prinsjesdag), Parliament will hold a joint session where the financial policy will be presented. At UENL, we will continue our diplomatic efforts until this time and hope that a reasoned perspective prevails. That said, the UENL council is already assessing all potential scenarios that may unfold on 18 September as well as viable options for each scenario. These options will be communicated to our UENL community in a timely and transparent manner.

More steps are still ahead in our journey. And while it is summer holiday for many, rest assured that your Council members (Engelbert Felberthann, Ashley Vinson, Mike AW, Pavithra Selvam, Jessica Taylor Piotrowski, Massimiliano Barone) are continuing onward. We invite you to please continue to share your stories with us, and of course, welcome any questions you might have.

With best wishes, on behalf of the UENL Council,

Massi Barone

Political Chair, UENL

NUTANIX ANNOUNCES SUPPORT

TOPIC: Nutanix Announces Support!

DATE: 9 July 2018

In a public statement, Nutanix has announced support for our efforts. See below for their released statement: 

Statement Nutanix Netherlands B.V - English. As an international company we are disappointed that the proposed reduction of the 30% tax ruling for expats does not include a grace period. This will directly impact individuals who have made important professional and personal decisions to move to the Netherlands based on the original commitment by the Dutch government. We respect the Dutch government’s right to change tax policies for both businesses and individuals but also believe it only reasonable that current recipients of this tax policy are not burdened by an unexpected change and request that the new policy is only effective moving forward and not retroactive. We seek to protect our highly skilled expat community, maintain trust in government, and to maintain the Netherlands’ positive reputation with the international business community.

On behalf of the UENL community, thank you, Nutanix, for your support!

UENL Political Update

TOPIC: Political Update

DATE: 3 July 2018

Dear All,

On July 2, our political outreach chair – on behalf of the UENL - attended a meeting at the Ministry of Finance regarding the proposed changes to the 30% ruling. By invitation only, this was the first of several meetings that will be held this week in discussion of this proposal.

For UENL, this meeting was an opportunity to express our concerns over the proposal – namely, the lack of transitional regulation. Here we strongly emphasized, yet again, the negative impact that this proposal will generate on the Dutch business community and – alongside this – used the UENL personal stories to share the real impact of this proposal on expats throughout the country.

In addition to UENL presence, attendees at the meeting were corporate stakeholders, unions, and expat associations.  All attendees unanimously agreed that, while the Government has the authority to make changes for the future, a transactional policy should be enacted just as it was in 2012 when the term limit was adjusted from 10 to 8 years. 

In addition, during this meeting, UENL learned that the questions raised on 31 May by the MPs (and directed to the State Secretary) are expected to be answered before summer recess. UENL will be sure to share more as soon as we know it.

Finally, last week we submitted an open letter to Menno Snel. This letter was written by Jessica Piotrowski (Communication Chair) and Engelbert Felberthann (Co-Founder, Corporate Chair) , with input and signature by the entire UENL council. The letter was shared at the meeting as another means to ensure that our message is clearly heard and to demonstrate that we have done our utmost to explore and engage every diplomatic opportunity. The original letter is written in Dutch, but we have made an English translation available as well.

There are more steps ahead in our journey. We will continue to keep you updated on our progress. In the meanwhile, please continue to share your stories with us. And, of course, please contact any members of the UENL council should you have any questions.