Duration for the reimbursement of Extraterritorial Costs
The 30% ruling has a maximum duration of 8 years. Is the duration for the reimbursement of the extraterritorial costs the same?
Extraterritorial costs are costs for a temporarily stay in The Netherlands. Where temporarily means that the employee will return to his country of origin.
For the 30% ruling the period of 8 years is considered a temporarily stay in The Netherlands. The Secretary of Finance mentions that it isn’t plausible that after 8 years you can still speak of a temporarily stay in The Netherlands. There could be exceptions, like for a seasonal worker that spends only a few months each year in The Netherlands.
Based on this we think the duration for the reimbursement of the extraterritorial costs will be accepted for at least 8 years, and perhaps longer depending on the situation.
Technical reference (for tax professionals): Secretary of Finance, August 23, 2013, question 7 and 9 and Veegwet Inkomstenbelasting 2001, p.82-83 (pdf) regarding the term ‘temporarily stay’.
- 30% ruling
- Partial Non-Resident Taxpayer Status
- Extraterritorial Costs
- Calculate the 30% ruling
- Switch Employers
- Duration & Permanent check
- International School Fees
- 30% Ruling Adminstration
- Two jobs
- Payment in kind
- Payments after the 30% ruling has ended
- Exercising Option Rights
- Working abroad
- Severance Payment
- You did not apply (or unwilling employer)
- Foreign company
- Non-English Language
- Appointed Science Institutes
- Appointed Medical Institutes
- Transition 2012