The Cabinet has, in the Spring Memorandum 2022 the tax measures have been announced, which are intended to offset the financial shortfalls.
AB rate
The rate at which income from a substantial interest (Box 2) is taxed will be reduced from the current 26.9% to 26%. However, at the same time, a new tax bracket is being introduced, to which a higher rate will apply, namely 29,5%. This rate will apply to income from a substantial interest from €67,000 upwards. The AB rate applies per person, meaning that holders of a substantial interest who have a partner can each receive €67,000 in dividends from their private limited company at the 26% rate.
The rate change will come into effect on 1 January 2024. This is just after the first reference date under the forthcoming legislation to combat excessive borrowing by directors and major shareholders. See our factsheet on this bill.
Corporation tax rate
The corporation tax rate remains at 25.8%. However, the threshold for the progressive tax bracket is being reduced from the current €395,000 to €200,000. Profits up to the amount of the tax bracket threshold will be taxed at a rate of 15% (unchanged).
Higher pay
The holder of a substantial interest who works for the private limited company (the director and major shareholder) must receive a salary from the company. This salary must be at least 75% of the salary in the most comparable employment relationship (customary salary). This percentage is being increased to 85%. Directors and major shareholders whose salary is equal to 75% of the customary wage must then increase their salary to 85% of the customary wage.
Transfer tax
Under the coalition agreement, the rate of transfer tax was to be increased from 8% to 9%, but under the new plans it will be 10.1%. This rate does not apply to purchasers of properties which they intend to use as their main residence on a permanent rather than temporary basis.
Retirement reserve abolished
For entrepreneurs operating as sole traders, in a partnership or as a general partnership (VOF), the option to build up a retirement reserve will be abolished. Retirement reserves already accrued may be settled in accordance with the current rules. The intention is that self-employed people will, in the near future, be given much greater scope to build up a retirement provision under the third pillar. See our article New tax rules on retirement provisions.
30% control
The 30% scheme, under which expats working in the Netherlands can receive 30% of their remuneration tax-free, is capped at the Balkenende threshold. For 2022, this WNT threshold stands at €216,000.