2025 Tax Plan

Adjustment to the extraterritorial costs regime  

Adjustments may be made to the extraterritorial costs scheme, including the 30% ruling. For any adjustments the evaluation study of SEO will be used. Read our Tax News article about this research.

Energy tax on natural gas

The government proposed in the Spring Memorandum to increase the energy tax on natural gas in the third, fourth and fifth brackets by 22.4 percent as of 2025 and to increase the rates with an extra 2.7 percent in 2030. In the Outline Agreement, these increases are reversed and in the first and second brackets the rate is even reduced by 2.82 cents per m3.

Tax reduction for energy tax

For electricity consumers, the general tax reduction for energy tax will be increased by 4 euro cents including VAT. This will be legally established in the 2025 Tax Plan with retroactive effect to 1 January 2024.

Abolition of netting scheme for consumers

The so-called netting scheme for solar panels of consumers will be abolished as of 2027. In the Spring Memorandum, the proposal was to maintain the netting scheme.

Reduced energy tax rate for hydrogen

The government is introducing a separate rate in the energy tax for hydrogen as of 1 January 2026. The exact design of the reduced rate will be included in the legislative proposal for the 2025 Tax Plan.

Coal tax

The government proposes to abolish the exemptions for dual and non-energetic coal consumption (mainly the use of coal in steel production) by 2027.

Circular plastic levy

A circular plastic levy will be introduced in 2028.

Tightening of the reduction factor for waste incineration plants

The government proposes to no longer exempt greenhouse gas installations for the incineration of urban waste from the Dutch CO2 levy industry.

Rate reduction for passenger cars in the motor vehicle tax

A new temporary rate reduction within the motor vehicle tax (Dutch: “mrb”) is introduced for emission-free (EV) passenger cars:

• 40 percent between 2026 and 2028,
• 35 percent in 2029,
• 30 percent in 2030,
• the temporary reduction expires after 2030.

In 2024, there is no motor vehicle tax levy for emission-free passenger cars. A rate reduction of 75 percent applies for 2025.

All other emission-free vehicles, such as EV vans and EV buses, will no longer receive motor vehicle tax reduction from 2026. These vehicles currently receive the same reduction as passenger cars.

Adjustment of the motor vehicle tax table for hybrid-powered passenger cars

European legislation leads to a new method for determining the CO2 emissions of hybrid-powered passenger cars (PHEV). Effectively, this results in a substantially higher CO2 emission for PHEV as of 1 January 2025 and a further increase as of 1 January 2027. The motor vehicle tax has a specific rate table for PHEV that must be adjusted due to this development. One possibility that is currently being focused on is the abolition of the separate rate table for PHEV.

Purchase of electric car

In the Outline Agreement, the purchase of electric cars will continue to be supported, but all subsidies will stop by 2025, while the weight correction for electric cars (EV, fiscal) will remain in place. It is unclear whether the reduced addition for electric cars would then end in 2025 instead of 2026.

Excise duty reduction for fuels

The excise duty reduction for fuels will be extended until 2025 and the so-called red diesel (lower excise duty rate) will be reintroduced for farmers, horticulturists and contractors as of 2027.

Flight tax

The air passenger tax will be differentiated by distance as of 2027.

Green Tax Investment Facilities: shift in budget reserve Vamil to MIA

The Random depreciation of environmental investments (Dutch: “Vamil”) and Environmental investment deduction (Dutch: "MIA”) each have a budget reserve to prevent the schemes from being closed prematurely if the annual budget is exhausted. The MIA budget reserve is almost depleted, and the Vamil budget reserve has grown in recent years. To balance this and prevent entrepreneurs from missing out on the MIA, the budget deficits of the MIA will be supplemented with the surpluses from the Vamil.

VAT

Short-term rental constructions in VAT

As of January 1, 2026, the existing VAT adjustment scheme will be expanded to include services related to immovable property such as renovations and maintenance, with a threshold of the service value of EUR 30,000. Entrepreneurs incurring such services will be required to monitor for 5 years whether the initial VAT deduction needs to be adjusted. This measure aims to make so-called short-term rental constructions less attractive, as these are currently employed to avoid VAT on renovation costs.

Abolition of the reduced VAT rate for cultural goods and services – excluding cinemas and day recreation

The reduced VAT rate for cultural goods and services – excluding cinemas and day recreation – will be abolished as of 2026.

Abolition of the reduced VAT rate for accommodation

The reduced VAT rate for accommodation – excluding camping sites – will be abolished as of 2026.

Real estate transfer tax (RETT)

Tax avoidance through the RETT (de)merger exemption

The RETT (de)merger exemption aims to prevent obstacles for companies aiming to restructure. The conditions for this exemption will become stricter, the proposed conditions are:

• A requirement to maintain the interest for 3 years,
• A business requirement, and
• A continuation requirement of 3 years.

The exemption does not apply if a succession of different legal acts (merger, split, internal reorganization) is primarily aimed at tax avoidance.

Adjustment of land consolidation exemption

With this adjustment, RETT exemption for land consolidations no longer applies to buildings, except for buildings which are used for commercial agricultural purposes. For the latter buildings, a continuation requirement applies.

Concurrence exemption VAT/RETT for share transaction of real estate entities

The RETT exemption avoiding concurrence of the levy of both VAT and RETT will be adjusted as of 1 January 2025, to create a level playing field between share transactions and ‘brick’ transactions. This concerns situations in which a company holds newly developed real estate and instead of transferring the real estate itself (the ‘bricks’), transfers the shares. In such cases, neither VAT nor RETT is payable. The new legislation is aimed to solve this by ensuring that the acquisition of shares in such a scenario is subject to 4% RETT if the real estate is used for less than 90% for VAT taxable supplies.

Gambling tax

The gabling tax rate will be increased from 30.5% to 37.8%

Qualification of foreign legal forms*

The qualification policy of foreign legal forms is regulated by law. In terms of content, there will be some changes. Foreign legal forms that are comparable to Dutch entities will continue to be qualified based on the legal form comparison method. However, for foreign legal forms that are not comparable to Dutch entities, two additional methods are introduced: the 'symmetric method' and the 'fixed method'. Read more in our Tax News article on this topic.

Abolition of 'open CV' as non-transparent taxpayer*

The difference between open (= non-transparent) and closed (= transparent) CVs is no longer applicable. As of 2025, most CVs will be transparent. The aim of this measure is to reduce the number of hybrid mismatches in an international context. 

The transition from a non-transparent to a transparent CV is regarded as a fictitious transfer and cessation. There are several transitional measures, among which are: a rollover facility, a share merger facility, and a deferral of payment. Read more in our Tax News Item on this topic.

Dividend tax repurchase facility for own shares likely to be retained after all

Last year, during the debate on the 2024 Tax Plan, it was determined by amendment that the dividend tax repurchase facility would be abolished by 2025. At the time, the government advised to keep the facility in place. The new government's Outline Agreement stipulates that the facility will indeed be retained. Also read our Tax News Item.

Changes to the FBI regime*

As of January 2025, Fiscal Investment Institutions (FBIs) are no longer allowed to invest directly in real estate located in the Netherlands. It remains possible for an FBI to be engaged in the management of a real estate entity associated with the FBI. It also remains possible to invest directly in foreign real estate. For this, the existing funding requirement remains as it was: the debt financing may not exceed 60 percent of the book value of the property. For other investments, debt financing is limited to a maximum of 20 percent of the book value of those investments. Also read our Tax News item on this topic (in Dutch).

Changes to the transparency rules of the FGR*

The conditions under which a mutual fund qualifies as an FGR, so an independent payer of corporate income tax (and as such is non-transparent) will change. A fund qualifies as non-transparent when:

• the fund can be regarded as an investment fund or fund for collective investment in transferable securities as referred to in Section 1:1 of the Financial Supervision Act; and 
• there are negotiable units of participation.

A non-qualifying fund is transparent, and the assets are allocated and taxed directly to the investors with income tax or corporate tax. For the consequences and background, see our Tax News article (in Dutch).

Concurrence of the debt relief exemption and the set-off of losses

The concurrence between the loss compensation measure in the corporate income tax and the debt relief exemption (kwijtscheldingswinstvrijstelling) may in certain cases make it more difficult for a loss-making company to restructure, namely if claims against that company are waived.  Due to the current loss relief rules, this write-off profit can still lead to corporation tax being levied despite the exemption. In the Spring Memorandum, it was announced that there will be an adjustment to the debt relief exemption.

Preventing the splitting up of real estate companies due to interest deduction

The splitting up of a company with real estate (leased to third parties) into several companies, with a view to deducting interest, will be prevented. By dividing a company into several smaller companies, it can be achieved that a larger amount of interest becomes deductible under the earnings stripping measure (also known as the EBITDA measure). Then the deductible of 1 million euros can be applied more often. It is proposed that the threshold of 1 million euros should not be applied altogether to such real estate entities.

Expansion of interest deduction due to increase in the percentage of earnings stripping measure 

In the Outline Agreement, it has been announced that the percentage for the application of the earnings stripping measure will be increased from 20% to 25% of the fiscal EBITDA. Interest up to 1 million euros is not limited in deduction (at least not on the basis of this interest deduction limitation). On balance, this means that for certain companies there will be more room to deduct interest on loans. 

General anti-abuse measure from ATAD 1

The general anti-abuse rule (GAAR) from ATAD 1 is to be laid down in Dutch tax law. This measure combats artificial arrangements designed to avoid tax improperly. The introduction of the GAAR was previously not considered necessary because of the possibility of combating abuse of the right with fraus legis. The legal enactment of the GAAR is not intended to make a substantive change in relation to the application of fraus legis.

Amendments to the subject-to-tax test under the CITA 1969*

For the application of the subject-to-tax tests in corporate income tax (e.g. for the participation exemption), it is important to know whether the minimum tax (Pillar Two) counts as a 'tax levied on profit'. This must be made clear by means of amendments to the law or an explanatory memorandum.

Objection to dividend withholding tax exemption becomes possible

The optional withholding exemption for dividends from participations to which the participation exemption applies or which are part of the same fiscal unity for corporate income tax purposes will become a mandatory withholding exemption. An important consequence is that shareholders who have been subject to dividend withholding tax can now object to the withholding. In this way, they will have access to the tax court.

First Public CbCR report for most companies in 2025*

On 22 June 2024, the Dutch Profit Tax Disclosure Directive (Public Country-by-Country Reporting) Act came into effect. This is an EU-initiated, mandatory, public reporting for large, international companies. Among other things, the profit tax paid, the number of employees and the income per country must be reported. 

Reporting will start for financial years beginning on or after 22 June 2024. For companies that have a financial year that is equal to the calendar year, this means that they will first report on 2025. This report must then be made public by 31 December 2026 at the latest. Read more about public CbCR in the Netherlands in our Tax News article.