Ex officio revision of the 30% ruling 

Encouraging news for employers navigating the complexities of the 30% ruling. Thanks to a recent amendment to the Dutch Decree on Fiscal Administrative Law there is now a provision allowing the review of decisions related to the 30% ruling even after the objection term has lapsed. Per January, this ex officio policy, formerly only applicable to a limited number of Dutch tax decisions, has been extended to decisions concerning the 30% ruling. This implies that, in most cases, apparent errors in 30% ruling decisions can be rectified beyond the official six-week objection term. If you require guidance on this new opportunity or assistance with the application of the 30% ruling within your organization, please reach out to our Global Mobility Services and international tax team. 

Objection term for Dutch tax decisions and ex officio revisions 

The objection term for Dutch tax decisions is generally six weeks. This implies that any (obvious) errors in tax decisions can only be objected to within the specified six-week timeframe by submitting a statement of objections. Due to the notably brief (particularly when compared to other countries) six-week period applicable in the Netherlands, the Dutch Tax Authorities have discretionary authority to autonomously rectify numerous tax decisions. This authority, known as the “ex officio revision” option (ambtshalve herziening), is outlined in paragraph 23 of the Dutch Decree on Fiscal Administrative Law (Besluit Fiscaal Bestuursrecht). The rationale behind this possibility to establish a mechanism for easily correcting errors, thereby safeguarding the integrity of the tax system, and boosting taxpayers’ confidence in the system

Ex officio revision and the 30% ruling 

The ex officio revision is deeply embedded in the Dutch tax system and has undergone extensive development in tandem with legislative changes influenced by the tax policies of various Dutch governments. This revision option applies to decisions involving income tax, corporate tax, sales tax (VAT), and many other direct and indirect taxes. For an extended period, a strange omission from this list was the 30% ruling. Consequently, individuals who received a decision pertaining to the 30% ruling were strictly bound by the six-week objection term in cases where the decision contained errors. 

Current status of the ex officio revision

The Year-End Decree 2023 (Eindejaarsbesluit) contains an amendment to the Fiscal Administrative Law Decree, allowing the submission of requests for ex officio revision of decisions related to the 30% ruling starting January 1, 2024. This development brings positive news for all employees and employers benefiting from the 30% ruling. In most cases, such a request can be filed up to five years after the end of the calendar year in which the 30% ruling, as per the decision, is applicable. Need assistance with a potential revision of a decision regarding the 30% ruling? Reach out to our advisors for support.