Tax implications after losing 30% ruling

jose-ams · 2019-08-02T16:27:48+02:00

Explore tax implications in the Netherlands after losing the 30% ruling, including asset declaration and tax obligations for non-resident taxpayers.

jose-ams Member

Member since 02 August 2019

jose-amsMember02 August 2019 14:27:48

Hi,

My 30% ruling expires this year in Oct.

With the 30% as a non-resident tax payer, there was no need to declare properties abroad or savings in NL or abroad.

However when ruling ends, this becomes mandatory and these assets will be taxed (wealth tax/box 3).

If I recall correctly these assets have to be reported when submitting the tax if one does not have 30% ruling anymore. The tax office asks for the state of the assets as of Jan, 1 in that fiscal year.

So let's say I stay in NL whole fiscal year of 2019. Now my ruling ends in Sep already, so when submitting the tax next year, first 9 months of the year I had the ruling, last 3 I did not have it anymore.

Does that mean that :
a) even though I did not have the ruling whole year, I do not have to declare these assets when submitting the tax next year (as of Jan, 1 I still had the ruling) or
b) they will treat me as regular taxpayer since when submitting the tax declaration I was no longer a beneficent of the ruling and I will be taxed on all the assets even if I still had the ruling on Jan, 1 2019?

Thanks,
Jose

Cynic UK/Netherlands Expert

Member since 15 September 2015

CynicUK/Netherlands Expert02 August 2019 14:50:26

7980

Hi and welcome to the Forum.

I've never been in receipt of the 30% ruling, but I did have a run-in with the Belastingdienst where they clobbered me for all my overseas income that had not been assessed in the relevant year from 1 Jan > 31 Dec.聽 The "assessed" is quite important; for example, if the money had been assessed by another country with which the Netherlands have a double taxation agreement with, then the Dutch weren't interested; however, you should be aware that the double-tax agreements only apply to income taxes; the Dutch also have social taxes which are not part of the 30% exemptions.

As far as I'm aware, you should have declared "all of your worldwide income" to the Belastingdienst; they then decide which part they are going to ignore, or not.

My advice is to go and get a financial/tax advisor.

Hope this helps.

Cynic
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