The Senate passed the bills containing the 2024 tax plans on 19 December 2023. Only the Industry and Electricity Tax Measures Bill was rejected.
This fixes the rates, exemptions, valuation standards, and so on for 2024. The finance ministry has collected the most important changes in a handy document. We highlight a few below.
Gift tax
We have already incorporated the amended gift tax rates and exemptions in our note Gift tax exemptions. The exemptions for 2023 can still be used until 31 December 2023. And on 1 January 2024, donations can be made right away under the exemptions for that year.
Donate exempt to your children. In 2023 €6,035 / 2024 €6,603 per child.
Or to your grandchildren (or others). In 2023 €2,418 / 2024 €2,658 per transferee.
Dividend
With effect from 2024, the substantial interest rate (box 2) will rise from 26.9% to 33%. Up to €67,000 (per tax partner), the rate will be reduced to 24.5%. It may be advantageous to still pay dividends in 2023. This must then be arranged by 31 December 2023.
Premium/investment annuity
With effect from 2023, working back to 1 January 2023, the possibility of deducting premium/deposits for an annuity has been significantly widened. The ministry incorrectly states this in the document. As early as 2023, the maximum annual allowance is 30% of the contribution base. PLEASE NOTE: to avail of the additional room, the premium/deposit must be paid no later than 31 December 2023.
Untaxed allowances
The maximum untaxed mileage allowance has been increased from €0.21/km to €0.23/km.
The maximum untaxed for working from home has been increased from €2.15/day to €2.35/day.
The free space under the working costs scheme (WKR) is 1.18% of the wage bill. Of the wage bill up to €400,000, the free space is 1.9% (2023: 3%).