(Bloomberg) -- The Dutch government is set to reintroduce most of the income tax breaks previously enjoyed by expatriate workers, Dutch newspaper De Telegraaf said, citing unidentified people familiar with the upcoming budget.
Expatriate workers will have 27% of their salary free of tax for five years, according to the paper. The Netherlands had for years attracted expats to the country by offering them a tax exemption on 30% of their salary. That benefit was watered down as part of an amendment to the tax rules this year.
The move is expected to provide relief to Dutch businesses that have been vocal about a faltering business climate in the country. Several of the companies that are heavily reliant on foreign workers, including ASML Holding NV and NXP Semiconductors NV, have previously expressed their dismay at the shrinking of the tax benefits.
The cabinet under Prime Minister Dick Schoof will outline its budget on Sept. 17, two months after being sworn in. Schoof’s first budget is also likely to include lower income taxes and a reduction of the transfer tax levied on investment properties, according to the paper.
Since the beginning of the year, expatriate workers’ tax benefits were reduced to 30% of their salary for the first 20 months, followed by a reduction to 20%, and then 10% at the remaining 20 month intervals. Plans to reverse the cuts, pushed by Pieter Omtzigt who heads one of the four coalition parties, were reported earlier by Bloomberg News.
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