What major tax proposals came out of Finance Minister Heinen's briefcase on Budget Day 2024? We list the 10 most important ones for you.<\/p>\n\n\n\n
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1. Reduction high rate second bracket of box 2<\/strong><\/p>\n\n\n\n Since 1 January 2024, the uniform rate in box 2 has been replaced by two rates. A rate of 24.5% applies to dividends received up to \u20ac67,000 in 2024. This rate will remain the same in 2025, but will then apply to dividends up to \u20ac67,804. For the year 2024, the rate of the second bracket at the end of 2023 was subject to a last-minute change from the originally proposed 31 to 33%. This change will now be reversed with effect from 2025. In 2024, a rate of 33% will still apply in the second bracket; from 2025, a rate of 31% has been proposed in the second bracket.<\/p>\n\n\n\n The reduced VAT rate of 9% on culture, media, accommodation (hotels, holiday homes and mobile homes), books and sports will expire from 1 January 2026. The general VAT rate of 21% will then apply.<\/p>\n\n\n\n <\/p>\n\n\n\n The general transfer tax rate of 10.4% will be reduced to 8% for non-owner-occupied residential properties from 1 January 2026. This rate reduction will not apply to commercial properties. For homes that are owner-occupied, the transfer tax rate will remain 2% - subject to the conditions already in place for this purpose. For first-time buyers under 35 years of age, the one-off transfer tax exemption will continue to apply - under the conditions already applicable for this purpose.<\/p>\n\n\n\n <\/p>\n\n\n\n 4. Business succession scheme and pass-through scheme<\/strong><\/p>\n\n\n\n The purpose of the business succession scheme (BOR) and the pass-through scheme (DSR) is to prevent the continuity of the business from being jeopardised by the tax burden in real business transfers. You can therefore pass the baton to the next generation with a tax incentive. The BOR and DSR play an important role in family business transfers, but pay attention to the changes already adopted at the end of 2023 and the additional changes announced.<\/p>\n\n\n\n The government proposes to reduce the mandatory continuation period from five to three years as of 1 January 2025. If this proposal is adopted, it means that for acquisitions occurring before 1 January 2025, a continuation period of five years will continue to apply, while for acquisitions from 1 January 2025, a continuation period of three years will then apply.<\/p>\n\n\n\n From 1 January 2026, adjustments proposed include the following:<\/p>\n\n\n\n <\/p>\n\n\n\n 5. Rollback of ouster of 30% scheme for expats<\/strong><\/p>\n\n\n\n Employees who come to the Netherlands and meet the criteria can claim the 30% scheme. This allows them to receive up to 30% of their salary untaxed. The 2024 Tax Plan had announced a downsizing in steps to 10% (the so-called \u201830-20-10 scheme\u2019). This austerity will be largely reversed, but in addition, a higher salary standard will be instituted.<\/p>\n\n\n\n From 1 January 2027, a constant flat rate of 27% will be introduced for up to five years. In 2025 and 2026, a rate of 30 will apply to all employees meeting the criteria. The salary standard will be raised from \u20ac46,107 (amount in 2024) to \u20ac50,436 from 2027. For incoming employees who are under 30 and have a master's degree, the salary standard will be increased from \u20ac35,048 (amount in 2024) to \u20ac38,338.<\/p>\n\n\n\n Currently, users of an emission-free passenger car (fully electric or hydrogen-powered) do not pay motor vehicle tax. In late 2019, the Tax Measures Climate Agreement Act has already adopted that such cars will be subject to a 75% rate discount on motor vehicle tax in 2025 and that the rate discount will be abolished from 1 January 2026. However, because zero-emission passenger cars have heavier batteries, they are also taxed more heavily. To reduce this difference and thus ensure that no fewer emission-free passenger cars will be sold, a rate rebate of 25% in motor vehicle tax for emission-free cars will apply from 2026 to 2029. The government has announced to assess in spring 2025 whether the 25% rate rebate for emission-free passenger cars is sufficient.<\/p>\n\n\n\n <\/p>\n\n\n\n For financial years starting on or after 1 January 2025, the gift deduction in corporate income tax will be abolished. This means that from that date, you will no longer be able to deduct donations from your profits from your company. Gifts from the company will additionally be regarded as a dividend distribution to private persons from 2025 onwards, and will therefore be taxed with dividend tax and in box 2 of income tax. A rate of 24.5 or 31% will apply in Box 2 in 2025, depending on the amount of total dividend payments in a year. However, you can, subject to conditions, then use the gift deduction in income tax in private.<\/p>\n\n\n\n <\/p>\n\n\n\n A new reduced first bracket in Box 1 will be introduced from 1 January 2025. This will provide more targeted tax relief to middle-income earners in particular. The rate in this first bracket will fall from 36.97% (2024) to 35.82% (2025). This bracket runs up to an income of \u20ac38,441 in 2025. The rate of the second bracket in 2025 is 37.48% and runs to \u20ac 76. 817.The limit for the third (highest) bracket is thus \u20ac 1,298 higher than in 2024. The highest rate in box 1 remains 49.5%. <\/p>\n\n\n\n The rate in box 3 will remain 36% next year too. Despite expectations that the box 3 rate would be reduced to ease the tax burden on savers and investors, the rate will not change.<\/p>\n\n\n\n <\/p>\n\n\n\n The earnings stripping measure limits the generic interest deduction and applies to all corporate taxpayers. As a result, you can deduct less of the difference between interest expenses and interest income on money loans when determining profits. From 2025, you cannot deduct the interest balance if it exceeds the higher of 25% (20% in 2024) of the (adjusted) profit or the \u20ac1 million threshold.<\/p>\n\n\n\n From 1 January 2025, the \u20ac1 million threshold will no longer apply to real estate bodies that lease real estate to third parties. This means that real estate bodies can deduct a maximum of 25% of (adjusted) profit in interest.<\/p>\n\n\n\n2. Abolition of reduced VAT rate arts, culture, sports and hotel stays from 1 January 2026<\/h2>\n\n\n\n
3. Reduction in transfer tax for non-owner-occupied houses<\/h2>\n\n\n\n
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6. Motor vehicle tax rebate emission-free passenger car<\/h2>\n\n\n\n
7. Abolition of the gift deduction in corporate income tax<\/h2>\n\n\n\n
8. Introduction of third income tax bracket<\/h2>\n\n\n\n
9. Box 3 rate won't go down after all<\/h2>\n\n\n\n
10. Changes to the earnings stripping measure<\/h2>\n\n\n\n