No Match Found
On Budget Day, the cabinet announced the Tax Plan 2024 package. Despite the cabinet's caretaker status, none of these bills have been declared controversial. For the (international) business community, the dga as well as the private individual, there is enough to take into account.
View the most important tax measures from the Tax Plan or read the tax factsheet for an overview of the 2024 and 2023 tax rates. If you are curious whether taxation based on legal recovery or actual return offers you a lower Box 3 tax, calculate this with the Box 3 calculation model legal recovery. Do you want an overview of the key points from all ministries' budgets? You can read these in the Highlights of the Budget Memorandum.
For specific topics from the Tax Plan, find our in-depth articles at the bottom of this page.
The introduction of the box 3 system based on actual returns will be postponed from 2026 to 2027. To cover the budgetary loss, one of the options is to introduce further refinement of the flat-rate categories and increase the box 3 rate to 38 per cent by 2024. According to the draft bill under consultation, the new box 3 system based on actual returns would assume an asset accumulation tax (levy directly on capital gains each year). As an exception, immovable property and shares in family businesses and start-up (innovative) companies would be subject to a capital gains tax (settlement after the profit is cashed in). For the first home in Box 3, where there is mainly owner-occupation, a flat rate of return applies. Due to the caretaker status of the government, it will be up to a subsequent cabinet to actually submit the draft bill - whether in amended or new form.
The calculation method for the relief of double taxation in box 3 in the case of foreign assets has been brought in line with the transitional legislation. For double tax relief, the tax payable is reduced by the portion box 3 tax which is attributable to foreign assets and liabilities.
The share in the assets of an association of flat holders’ account (in Dutch: ‘Vereniging van Eigenaren’ or ‘VvE’) or assets in a notary’s trust account will now be placed under the category of bank deposits for the purposes of the taxation of savings and investments (box 3), as these assets are usually held in a bank account and this category therefore better suits this asset. This is relevant because qualification as investment means the application of a higher percentage deemed revenue.
From 1 January 2025, the conditions under which a Mutual Fund (in Dutch abbreviated as fgr) qualifies as transparent will be changed. In a transparent fund, the assets are attributed to the investor and taxed with income tax. An fgr will then only be considered non-transparent for Dutch income tax purposes if:
Due to these conditions, a fund can only qualify as a non-transparent fgr if it raises capital from a range of investors and has a Wft licence or is exempt from the Wft. For the impact of a change from non-transparent to transparent, see the relevant corporate tax measure. You may also read our earlier Tax News article.
An undesirable outcome of the Excessive Borrowing from Own Company Act is being repaired. This refers to the situation where the conservational assessment is recovered if the taxpayer borrows excessively from a newly established foreign-based company after the taxpayer has emigrated from the Netherlands.
The current box 2 rate is 26.9 per cent. From 2024, box 2 will have two brackets. The first bracket will tax up to 67,000 euro of box 2 income per person at a rate of 24.5 per cent. The second bracket will be subject to a rate of 31 per cent on the excess.
The government plans to implement the reform of the rent allowance envisaged in the coalition agreement in a modified form. The previously announced standardised rents will not be implemented. However, the age limit will go down from 23 to 21 years, the maximum rent limits will be abolished and service costs will no longer count for the amount of the allowance.
For assessing whether an interest qualifies as a so-called lucrative investment, in addition to share premium and informal capital, (shareholder) loans are also to be taken into account. This amendment is proposed with retroactive effect to 26 June 2023.
From 1 January 2024, the 30% ruling can be applied up to a maximum of the WNT norm (2023: EUR 223,000). For expats already using the 30% rule in 2022, the capping will not take effect until 1 January 2026. Also read our earlier Tax News article.
The government intends to take two measures against “dividend stripping”, namely: Settlement, reduction or refund of dividend tax is to be only granted to those who are entitled to this on a reference date to be specified by law; A change in the burden of proof in favour of the tax inspector.
The minimum capital requirement in corporate income tax (for banks and insurers) has too much of an effect on internal treasury activities. To compensate for this, the non-deductible percentage in the minimum capital requirement will be increased from 9 per cent to 9.4 per cent.
At present, the tax qualification of foreign legal forms is based on a decree. This decree will be replaced by the Foreign Legal Forms Qualification Policy Adjustment Act, for which a legislative proposal will be submitted on Budget Day. In principle, the qualification of foreign legal forms will continue to take place on the basis of the legal form comparison method. In addition, two new methods will be introduced: the “symmetrical method” and the “fixed method”. The new law should enter into force on 1 January 2025.
From 1 January 2025, Dutch Fiscal Investment Institutions (in Dutch abbreviated as fbi's) are no longer allowed to invest directly in real estate. Also, Dutch fbi’s may no longer govern a related real estate owning entity. Furthermore, certain Dutch fbi's may no longer have a loan-to-value of more than 20 per cent, measured against the tax book value of all investments. Currently, the limit of 60 per cent over the fiscal book value of real estate applies. For this and for the changes below, you may read our earlier Tax News article.
From 1 January 2025, the Dutch regime for Exempt Investment Institutions (in Dutch abbreviated as vbi) will be limited to certain institutions under the Financial Supervision Act. Under the vbi regime, direct investment in real estate is not allowed, so the impact of this measure on the real estate sector is limited.
When shifting the tax classification of a Mutual Fund (in Dutch abbreviated as fgr) from non-transparent to transparent, a deemed disposal of the assets and liabilities of the Dutch Investment fund and a disposal of the units by all investors at fair value applies. Any related taxable gains are then subject to (corporate) tax at the regular rates.
Three additional facilities will be introduced as transitional law when shifting the tax qualification of fgr from non-transparent to transparent:
A taxpayer who does not meet the conditions to apply facilities 1 and 2 may request for deferral of (corporate) income tax for a period of 10 years, provided that the tax claim can be preserved by the Dutch tax authorities.
The energy tax will be adjusted on a number of points as of 1 January 2025, possibly with a transitional period whereby the measures will be fully implemented by 2030 at the latest.
The minimum CO2 price for electricity generation and industry will be increased, with the amount depending on an evaluation of the price development.
In the energy tax, natural gas used to support heat generation from sustainable sources is treated more favourably. With this change, the list of sustainable sources is expanded with new sustainable techniques.
A number of measures are being taken in relation to energy tax. For households, the tariffs are reduced up to a certain level of gas consumption. Above that they are raised. In addition, there will be a separate rate for hydrogen. Finally, measures are being taken to adjust the degressivity for natural gas and the electricity tariffs in the higher consumption brackets will be reduced.
The exemption from the coal tax for dual use of coal will be abolished on 1 January 2028.
The current transfer tax exemption will be amended to create a level playing field between new real estate transferred via share deals and new real estate transferred directly. The measure is expected to take effect on 1 January 2025. The final details of the proposal are currently being worked out and transitional law is being provided.
There will be a temporary exemption from transfer tax to allow tax-neutral conversions from a Fiscal Investment Institution (fbi) to fiscally transparent Mutual Fund (fgr). This transfer tax exemption will only apply in 2024 and is intended only for acquisitions of beneficial ownership. Legal ownership is thus excluded from this exemption. There will be further restrictions on the entity disposing of the property and the entity acquiring its beneficial ownership in connection with the reorganisation. You may also read our earlier Tax News article.
From 1 January 2025, the provision of cross border virtual services will be subject to VAT in the Member State of establishment of the customer (Member State of consumption). This includes cultural, artistic, sporting, scientific, educational or entertainment services.
From 1 January 2024, it will be mandatory to provide data on your employees' commuting and business mobility, with the concrete goal of reducing 1.5 megatonnes of CO2 by 2030. For further background, read our earlier Tax News article.