In our newsletter you will probably have already seen that the Tax Plan 2019 states that the 30% facility will be cut from eight to five years. No transition arrangements for this have as yet been made. This means that those whose 30% facility which began before 1 January 2014 will lose it from 1 January 2019. 

 

If you have the 30% facility you can opt for partial non-resident taxpayer status. What this means in practice is that you are then liable for less tax in box 2 (income from a substantial investment) and box 3 (income from savings and investment). When the 30% facility ends your box 2 and box 3 income will also become subject to tax in the normal way. As the plans currently stand, if they are adopted without transition arrangements then it may be that your assets (e.g. bank and savings accounts, investments or a second home) will immediately become subject to tax in box 3 from 1 January 2019. These levies can amount to 1.68% on the asset.

 

Should this be the case in your situation, we would be happy to discuss with you what you could still do this year to limit the extent of this levy.