Duration for the reimbursement of Extraterritorial Costs

/Duration for the reimbursement of Extraterritorial Costs

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’.

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