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, with an English translation also available.