Yesterday, the Rutte IV Cabinet presented its coalition agreement. Naturally, this includes tax measures. We briefly outline the most important ones.
Excessive borrowing
The bill on excessive borrowing by the director-major shareholder is amended. The limit of €500,000 will be increased to €700,000. More on this bill in our factsheet.
Business succession
The business succession allowances will be improved, looking at how to counter improper use. This concerns the scheme in inheritance and gift tax (conditional exemption of 100% for business assets up to - in 2021 - €1,119,845 and above that of 83%) and in income tax (the pass-through arrangements for benefits from substantial interests; box 2).
Self-employment deduction
The deduction for people who week at least 1,225 hours in their sole proprietorship, partnership or VOF, the self-employed deduction, will be further reduced to €1,200 in 2030. Self-employed will be compensated in the form of a higher employment tax credit
Box 3
A new system of levying income tax on income from savings and investments (box 3) will be introduced from 2025. This new system will be based on real returns. So for the time being, all savings-BVs can stay “in the air” for a while. The value development of real estate will initially still be taxed on a flat-rate basis under the new system.
As of 2023, however, the valuation of rented properties on the vacant value ratio will already be abolished (see our article Property in box 3 void value ratio/). This aims to bring the tax burden on rented property more in line with practice.
Jubelton abolished
The extended gift for owner-occupied housing will be abolished by 2024. When it was introduced, the amount of this gift exemption was €100,000, which gave the scheme the name “jubilee bonus”. So we can only jubilate for another 2 years. We have collected the gift tax exemptions for you in a factsheet.
Travel reimbursement
The maximum untaxed travel allowance, currently €0.19 per business or commuting kilometre, will be increased. What the new mileage amount will be is not yet known.
Averaging
The work and home income averaging scheme (box 1) will be abolished by 2023.
Transfer tax
The transfer tax rate will be increased from 8% to 9% by 2023. The reduced rate of 2% for residential properties and the rate of 0% for first-time buyers (starter exemption) will remain unchanged.
MRB Plus
A kilometre charge will be introduced in 2030. The basis for this will be the system of motor vehicle tax (MRB). Of this tax, the rate will be made dependent on the annual number of kilometres driven. Hence the name MRB Plus. MRB Plus will be introduced on a budget-neutral basis.
BPM exemption for vans
The BPM exemption applicable to vans will be phased out to zero in three steps from 1 January 2024. Entrepreneurs will then pay the same BPM for vans as for cars. However, the BPM exemption for emission-free vans will remain.
Ambitions
The new Cabinet also has ambitions:
- Abolition of surcharges;
- Simplify and reform the tax system;
- (as well as taking the first steps to do so).