Outgoing Finance Minister Van Weyenberg has announced the Spring note 2024 presented. We extract some tax proposals for you.
We do so with the emphatic note that it is completely uncertain whether these proposals will reach the parliamentary finish line. After all, the caretaker government does not have a majority in Parliament. And the negotiations on the formation of a new cabinet have not yet reached the stage where it is clear what tax proposals will emerge from that process.
SME exemption
The SME profit exemption is 13.31% in 2024. For 2025, this would be reduced to 12.7%. The spring note proposes a further reduction to 12.03%. The SME exemption partially exempts profits of IB entrepreneurs from income tax.
Walk-through and alternately used van
For a continuously and alternately used van, the employer may “buy off” the addition for private use with payroll tax under the final levy scheme. This employer will then pay €300 in payroll tax per continuously and alternately used van. This amount will be increased because it has not been adjusted for inflation since its introduction in 2006. What the amount will be, the Spring Memorandum does not mention.
Fighting structures with short stay
In the context of VAT, a revision scheme will be introduced to combat constructions involving “short stay rental” of real estate. The proposal to introduce this scheme has been up for internet consultation until early April. The revision scheme will come into force for conversion projects of real estate that are put into use after 1 January 2026.
Lump-sum pension
The effective date of the bill under which part of a pension entitlement can be paid as a lump sum is 1 July 2024. This date cannot be met. It is unclear what the new (envisaged) effective date will be. See also our article Pension lump sum payout? Wait a little longer.
Notable tax structures
Furthermore, Annex 10 to the Spring Memorandum provides an update on the fight against remarkable tax schemes.
- Avoidance via parcel exchange exemption (transfer tax): it is proposed to tighten the conditions for the exemption by making the exemption no longer applicable to the acquisition of residential property (excluding agricultural farm houses), subsoil and appurtenances. Other buildings and subsoil will be covered by the exemption only if they are operated as an agricultural business.
- Short-term rental constructions in VAT: here for this under the heading Combating structures with short stay.
- Tax avoidance through the split exemption (transfer tax): the following are added to the exemption: a holding requirement (3 years), a company requirement (except for dispute splits) and a continuation requirement (3 years). The exemption does not apply to successive acts, predominantly aimed at tax avoidance.
- Pent-up behaviour in real estate limited partnerships for the purpose of interest deduction: It is proposed to apply a threshold of €0 for real estate BVs with properties leased to third parties for the purposes of interest deduction.
- Non-regular settlement of pension and annuity claims (and PSOs) in the BV: proposed to revive the post-tax recovery period at the moment the Tax Authorities discover that a retirement provision has not been regularly settled.