2023 Tax Plan

Wage tax/Social Security

Travel allowance

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.

30% ruling limited to ‘Balkenende’ standard

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.

Home office expense allowance

The untaxed homework allowance will be indexed and probably raised to EUR 2.13.

Corporate income tax

Lowering of the corporate income tax bracket

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.

Climate and energy

Increase budget EIA and MIA/Vamil

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.

Increase of CO₂ tax for industry

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.

Energy Tax and Sustainable Energy Surcharge (ODE)

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.

Increase in Energy Tax rebate

The energy tax component of the energy bill for households will be structurally lower as of 2023 (through an increase in the tax rebate).

Flight tax

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).

Reduction Energy tax

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.

Extension of fuel tax reduction

The temporary reduction in fuel excise duty will be extended until at least June 2023.

Gift and inheritance tax

Business succession

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.

Gift tax exemption reduced in run-up to abolition

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.

Vacancy value ratio not abolished, but adjusted

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.

Transfer tax

Transfer tax on non-residential properties

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, Consumption tax & Excise

VAT zero-rate on solar panels

VAT on the supply and installation of solar panels will go from 21 percent to 0 percent.

Small business scheme (KOR)

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.

Zero VAT rate on fruit and vegetables?

The cabinet is looking at reducing VAT on fruit and vegetables to 0 per cent.

Increase of consumption tax on non-alcoholic beverages

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.

Increase in excise duty on tobacco

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.

Private vehicle & motorcycle tax, abolition exemption vans

The exemption for entrepreneurs' delivery vans will be abolished. The exemption for emission-free delivery vans will continue to exist.

Other

Abolition of landlord charge

The landlord charge will disappear in its entirety in 2023.