2024 Tax Plan

30% ruling: limitation of salary to 'Balkenende norm'* 

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.

Dividend stripping

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.

Increased non-deductible percentage minimum capital requirement banks and insurers

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.

Policy adjustment act for the qualification of foreign legal forms 

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.

Fbi regime adjustments*

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.

Limitation of vbi regime*

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. 

Consequences of changing from non-transparent to transparent fgr*

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. 

Transitional law change from non-transparent to transparent fgr*

Three additional facilities will be introduced as transitional law when shifting the tax qualification of fgr from non-transparent to transparent:

1. a roll-over facility of the deferred tax claim on deferred profits, tax reserves and goodwill;
2. a share merger facility for unitholders subject to income tax allowing them to transfer the units to a Dutch corporate entity in exchange for shares, and
3. a temporary exemption from real estate transfer tax in connection with the merger for unitholders subject to income tax.

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.

Amendments energy tax

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 energy tax exemptions for metallurgical and mineralogical processes expire.
• The input exemption for electricity production is limited to the use of natural gas for electricity production that is supplied to the grid (measure is aimed at installations for cogeneration (wkk’s)).
• The reduced energy tax rate for greenhouse horticulture will be abolished.

Adjustment of min CO₂ price for electricity and industry after evaluation

The minimum CO₂ price for electricity generation and industry will be increased, with the amount depending on an evaluation of the price development.

Update legislation on sustainable heat sources

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.

Tightening energy tax rates

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.

Abolition of dual exemption in the use of coal tax

The exemption from the coal tax for dual use of coal will be abolished on 1 January 2028.

Adaption of the transfer tax exemption for share deals

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.

Temporary transfer tax exemption for conversion of fbi to fgr*

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.

Adjustment place of supply rules for virtual services

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.

Information obligation work-related people mobility*

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.