If an individual benefits from the 30% ruling, they have the option to select the partial non-resident status. In this scenario, they are treated as a non-resident taxpayer for box 3 for the purpose of calculation. However, once the 30% ruling expires, the individual reverts to being a regular resident taxpayer for box 3.
In a recent ruling by the Amsterdam Court of Appeal on May 2, 2023, with reference ECLI:NL:GHAMS:2023:1536 , it was confirmed that if the 30% ruling ends during the year, the tax liability for box 3 is calculated on a proportional basis. The value used for calculating the ruling is determined as of January 1 of that year.
According to Article 5.2, third paragraph, of the Income Tax Act (now 5.2, sixth paragraph), the following provision applies:
“If the taxpayer is not yet a resident taxpayer at the beginning of the calendar year, or if the residency tax liability ends during the calendar year for reasons other than death, the starting value of the yield at the beginning of the calendar year shall be taken into account, while the benefit from savings and investments shall be determined on a proportional basis, disregarding fractional parts of calendar months.”
The Court of Appeal concluded that the legislative intent of this provision is to apply this also in the case of the 30% ruling expiration, even though the law does not explicitly address this specific situation.
This verdict comes as no surprise. We anticipate further developments in these two areas in the future considering the ongoing scrutiny surrounding both Box 3 and the 30% ruling.