Taxes on labour and wealth more balanced
The government announced the Tax Plan 2023 package on Budget Day. It includes measures for purchasing power, among other things. The burden on labour and the burden on assets will be brought more in balance. Companies will pay more corporate income tax and there will be an accelerated phasing-out of the self-employed deduction.
Are you curious about whether you are eligible for legal recovery, calculate this with the Box 3 calculation model legal recovery.
View the key tax measures from the Tax Plan or consult the tax factsheet for an overview of the 2023 and 2022 tax rates. You can read an overview of the key points from the budget of all ministries in the Highlights Budget Memorandum. For specific topics from the Tax Plan, you will find a selection of our in-depth articles below.
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What impact do the tax measures have on you or your organisation? We have listed the most important measures.
View tax measures
Find the different tax rates and figures for 2023 and 2022 in a useful overview.
This calculation model will give you an indication of whether you could potentially recover income tax with the legal recovery for box 3.
Read more (Dutch)
Read an overview of the key points from the budget of all ministries in the highlights Budget Memorandum. (Dutch)
View the key points per ministry (Dutch)The rate of the first income tax bracket will be reduced by 0.11 percentage points.
The current phase-out of mortgage interest deduction leads to a capping of the deduction at the basic rate of 37.05 per cent in 2023. This reduction will not be further accelerated.
The averaging provision in the Income Tax will be abolished in 2023. This means that 2022-2024 is the last period over which averaging can take place.
The self-employed individuals tax deduction will be gradually reduced as of 2023 with 650 euro each year, up to 1,200 euro in 2030. Self-employed individuals will however be compensated via an increase of the tax rebate for working people.
As of 1 January 2023, the FOR can no longer be built up in a tax-facilitated manner.
The proposed Excessive Lending Act will be amended, raising the borrowing limit from €500,000 to €700,000.
As of 2024, Box 2 will have two brackets: the first bracket of 26 per cent for the first EUR 67,000 of box 2 income per person and the second bracket of 29.5 per cent on the excess income.
The salary to be determined for a director and major shareholder (DGA) may not be more than 15 percent lower than a 'normal' salary to be determined for this DGA. This difference is now 25 percent.
The softening of the 'normal' salary’ rule for innovative start-ups is still being evaluated, depending on the outcome, the rule may be abolished as of 1 January 2023.
According to media sources, initially, only objectors would be compensated for the excessively high Box 3 levy in the years 2017 to 2021. This would mean that all taxpayers who did not object to the Box 3 levy would not be entitled to compensation for any excessively high Box 3 levy. Last weekend, according to media reports, it appears that non-objectors can also get compensation through a request for automatic reduction.
A new Box 3 system will be introduced based on real returns, such as interest, dividends and rental income and capital gains. Intended effective date was originally 2025 but has become 2026. Transitional Box 3 legislation will be designed for tax years 2023, 2024 and 2025.
The vacant value ratio of rented property in Box 3 will be adjusted rather than abolished, as announced in the Coalition Agreement. The percentages in the table will be updated. Furthermore, temporary contracts will be excluded and in case of letting to related parties the starting point will be the highest percentage in the table (100%).
According to leaked plans in the media, the Box 3 rate will be increased in steps from 31 per cent to 34 per cent.
In addition to box 1 income, income from boxes 2 and 3 will also count towards the reduction of the general tax credit as of 2025.
The IACK will be abolished for new cases after 2024. From 2025 onwards, an age limit based on the year of birth will be applied. The IACK will be abolished completely as of 2037.
The previously proposed increase in the elderly tax rebate will not go ahead.
The childcare allowance for working parents is replaced by a childcare reimbursement, paid directly to childcare institutions. Parents still pay a small contribution.
The maximum rent limit for the rent allowance may be abolished in 2024 and replaced by a system of standard rents based on income.
The rent allowance will increase by € 16.94 per month. The healthcare allowance will be increased once by € 412.
The healthcare allowance will be increased for one year by € 412.
As of 2023, the tax-free travel allowance will be increased from 19 cents to probably 20,5 cents or 21 cents per kilometre. Per 2024 this will be 23 cents per kilometre.
The 30% ruling will apply up to the Standards for Remuneration Act (‘Balkenende’ standard’, 2022: 216.000 euro). A transitional arrangement will ensure a three-year phase-in period.
The untaxed homework allowance will be indexed and probably raised to EUR 2.13.
As of 2023, the bracket limit will be reduced from EUR 395,000 (bracket limit since 2022) to EUR 200,000. As a result, companies will sooner reach the high corporate income tax rate of 25.8 percent. Based on the leaked plans, the low rate will go up from 15 per cent to 19 per cent.
The EIA and MIA/Vamil are fiscal investment facilities for qualifying investments in energy efficient and environmentally friendly technologies. The budgets for these facilities will gradually be increased in the coming years.
In order to meet emission targets under climate policy, the CO2 tax for industry is being tightened by adjusting the number of dispensation rights.
According to leaked sources, the government wants to set the reduction factor for the year 2023 at 1.213. For each subsequent calendar year, a decrease of 0.078 will take place. The rate of the CO2 tax for industry remains unchanged for the time being.
The first bracket for the rate for gas in the Energy Tax will be increased in the period 2023-2028, while the first bracket for electricity will be reduced in that period. The ODE rates will be integrated into the Energy Tax rates from 2023.
The energy tax component of the energy bill for households will be structurally lower as of 2023 (through an increase in the tax rebate).
The flight tax will be raised as of 2023 and the proceeds will partly go towards making aviation more sustainable and reducing environmental impact.
According to the leaked plans, the flight tax will go from € 7.95 to € 28.58 per departing passenger (transfer excluded).
The VAT rate reduction on energy from 21 percent to 9 percent that applies as from 1 July 2022 will be withdrawn on 31 December 2022. However, based on the leaked plans the energy tax will be significantly reduced next year in return. There will be an energy surcharge of € 1,300 for vulnerable households.
The temporary reduction in fuel excise duty will be extended until at least June 2023.
The Cabinet has announced its intention to simplify and better target the business succession regime for gift and inheritance tax. The Cabinet will give its response on CPB evaluation of this regime on Budget Day, so an amendment proposal is not expected to be included in the 2023 Tax Plan.
The extended gift exemption of EUR 106,671 (2022) for own homes will be abolished in 2024. In the run-up to this, this exemption will be reduced to EUR 27.231 as of 2023.
The vacant value ratio is a valuation method for gifts and inheritance of rented property. This valuation method will be adjusted rather than abolished, as previously announced in the Coalition Agreement. The percentages in the table are updated. Furthermore, temporary contracts will be excluded and in the case of letting to affiliated parties, the highest percentage in the table (100%) will be the starting point.
The transfer tax for non-residential properties and on acquisitions of residential properties by legal entities and private individuals who do not themselves intend to live in the residential properties for a long time will be increased from 8 to 10.1 percent as of 2023. However, according to leaked plans in the media, this will become 10.4%.
VAT on the supply and installation of solar panels will go from 21 percent to 0 percent.
On 1 January 2025, the KOR will be adjusted. The most important change is that an entrepreneur can also apply the KOR in other Member States.
The cabinet is looking at reducing VAT on fruit and vegetables to 0 per cent.
As of 2023, the consumption tax on non-alcoholic beverages will be increased. An exception for mineral water will follow in 2024. Further it will ensure that light beers will continue to be taxed at least at the same rate as soft drinks and other non-alcoholic beverages.
The excise on tobacco will be increased, a pack of 20 will cost about 10 euro in 2024. This will take place in two successive steps.
The exemption for entrepreneurs' delivery vans will be abolished. The exemption for emission-free delivery vans will continue to exist.
The landlord charge will disappear in its entirety in 2023.
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