On Wednesday 15 March 2017, the Netherlands will go to the polls for the House of Representatives elections. Voters will then decide which 150 Dutch citizens will represent them as members of parliament for the next four years. Twenty-eight parties are standing for election. Members of the House of Representatives oversee the government and draft and scrutinise bills. Do you consider a political party’s stance on tax issues to be important when choosing which party to support? This article provides a clear summary.
As this article is primarily intended to provide a simplified overview of some of the tax positions held by various political parties, we shall begin straight away with the summary. An explanation of the questions follows below.
The positions at a glance
| Party | State Pension (AOW) | IB highest incomes up | Compulsory Disability insurance for self-employed people | Corporate tax rate down | Mortgage rate not to affect the deduction |
| 50 Plus | Once | - | Once | Disagree | Once |
| CDA | Disagree | Disagree | Once | Once | Once |
| CU | Disagree | Disagree | Once | Disagree | Disagree |
| D66 | Disagree | Disagree | Disagree | Disagree | Disagree |
| Green Left | Disagree | Once | Once | Disagree | Disagree |
| P. animals | Once | Once | Disagree | Disagree | Disagree |
| PvdA | Disagree | Once | Once | Disagree | Once |
| PVV | Once | Disagree | Disagree | Disagree | Once |
| SGP | Disagree | Disagree | Disagree | Once | Once |
| SP | Once | Once | Once | Disagree | Disagree |
| VVD | Disagree | Disagree | Disagree | Once | Once |
These simplified positions are derived from the manifestos of the political parties mentioned. For a detailed explanation of these positions, please refer to the manifestos, which can be found on the relevant party’s website.
Proposition 1 – Return the state pension age to 65
Up to and including 2012, the state pension age was fixed at 65. This changed from 2013 onwards. On 1 January 2013, the state pension age was raised by one month. In the years that followed, the state pension age was – and continues to be – raised in stages, until it reaches 66 in 2019 and then 67 in 2023. From 2024 onwards, the state pension age will be linked to life expectancy. By means of this The SVB’s calculator can be used to work out the state pension age.
Should the state pension age be raised back to 65?
Proposition 2 – Increase in the top rate of income tax (IT)
The top rate of income tax is 52%. Income (from employment and property) above €67,072 falls into this top bracket in 2017. A complete overview of the tax brackets for 2017 can be found here.
Should the highest income groups pay more tax?
Proposition 3 – compulsory occupational disability insurance for self-employed people
Employees in paid employment are compulsorily insured under the statutory employee insurance schemes, including the Sickness Benefits Act (ZW) and the Income and Employment Act (WIA). The employer bears the costs of these insurance schemes. In the event of illness or incapacity for work, these schemes ensure that the employee’s income is maintained. Self-employed people (such as those working on a self-employed basis) may take out voluntary insurance against illness and incapacity for work, but are not obliged to do so.
Should compulsory insurance against incapacity for work and illness be introduced for all self-employed people without staff (zzp’ers)?
Proposal 4 – Reduce the corporation tax rate
The rates for 2017 are as follows: for a taxable amount of up to €200,000, the corporation tax rate is 20%. Above that amount, the rate is 25%. The size of the company is irrelevant (SMEs, multinationals, etc.).
Should corporation tax be reduced?
Proposition 5 – Do not undermine mortgage interest relief
Mortgage interest paid on a home loan is (subject to certain conditions) deductible from income from employment and property (Box 1). Mortgage interest relief is a recurring topic on the political agenda.
Should the mortgage interest relief scheme not be further eroded?
Taxes under review
Our tax advisers deal with the above matters on a daily basis. They certainly see room for improvement across the entire tax legislation. However, the manifestos do not yet indicate any clear, comprehensive overhaul of the tax system. The only advice we would like to offer you at this stage is: make your voice heard. We wish you every success in weighing up your options.