State Secretary for Finance Van Rij stated in a Chamber letter set out what will be included in the 2023 Tax Plan Package.
4 bills
The 2023 Tax Plan Package will consist of the following four legislative proposals:
- Tax Plan 2023 (26 measures);
- Box 3 recovery legislation;
- Temporary Act on Box 3;
- Act on a Minimum CO₂ Price for Industry.
Not everything is new. The measures announced are (largely) already known from the 2022 Spring Agreement.
Tax Plan 2023
We cannot discuss all 26 measures in this bill in detail. We shall therefore limit ourselves to listing them.
- Abolish the income-related combination allowance (IACK) for parents with children born after 2024.
- Abolition of the averaging scheme (final averaging period: 2022–2023–2024).
- Limit the 30% scheme to the Balkenende standard.
- Two-tier tax rate for Box 2 (income from a substantial interest): 26% on income up to €67,000 and 29.5% on income above that amount.
- Phasing out of the general tax credit (AHK) based on aggregate income (currently, this is calculated on the basis of income from employment and property; Box 1).
- Abolish the tax-deductible retirement reserve (FOR).
- Reduction in the efficiency margin under the standard pay scheme.
- Phasing out of the self-employed tax allowance
- Lower the corporate tax threshold to €200,000.
- Abolition of the gift tax exemption for the owner-occupied home (“jubelton”) in 2024, with a prior reduction in 2023.
- The standard pay scheme for innovative start-ups has been abolished.
- Legislation amending the rules on nitrous oxide (application of the high VAT rate).
- Zero-rate VAT on solar panels for residential properties.
- Increase in the general transfer tax rate from 8% to 10.1%.
- Increase in air passenger duty.
- Tightening the CO₂ levy on industry.
- Abolish the BPM exemption for business delivery vans (the exemption for zero-emission vehicles will remain in place).
- Increase the tax-free travel allowance (the budget of €200 million set aside is expected to be sufficient for an increase of 1 or 1.5 cents).
- Increase in tobacco duty.
- Increase in excise duty on non-alcoholic drinks
- To specify the specific circumstances in which no recovery interest is charged.
- Energy tax rate structure.
- Reduction in the ODE levy for the 2nd and 3rd electricity bands (ODE = renewable energy and climate transition levy).
- Increase in the first bracket of energy tax.
- Increase in the energy tax relief.
- ODE rates and their inclusion in energy tax.
Box 3
Two of the bills relate to Box 3. In our article Restore box 3 for mass objectors We set out the Government’s plans in this regard. These plans will be debated in the House this week. The letter to the House therefore adds nothing to the information that has been made public so far.
It is, however, stated that the abolition of the vacant property ratio, as agreed in the coalition agreement, will be incorporated into these proposals. The vacant property ratio refers to the method used to value let property under Box 3.
Tax Omnibus Act 2024
Van Rij has also announced a number of measures that will be included in the 2024 Omnibus Tax Act, due to be tabled in 2023. For example, the uncertainty requirement relating to periodic gifts will be amended, and a valuation requirement will be introduced for gifts in kind.