Netherlands: Income and indirect tax measures in 2023 Tax Plan

The 2023 Tax Plan package was presented to the lower house on “Budget Day”

The 2023 Tax Plan package was presented to the lower house on “Budget Day”

The 2023 Tax Plan package, presented to the lower house on “Budget Day” (20 September 2022), proposes changes with regard to income tax, payroll tax and social security contributions, value added tax (VAT), and excise and consumption taxes.

Specifically, the proposed changes include:

  • Corporate income tax
    • 19% tax on the first €200,000 of profit as of 2023
    • Fiscal investment institutions may no longer directly invest in property as of 2024
  • Personal and corporate income tax
    • Environmental investment allowance and energy investment allowance increase as of 2023
  • Personal income tax
    • Box 1 basic rate decreases to 36.93% (from 37.07%) as of 2023
    • Two rates for substantial interest as of 2024: 24.5% up to and including €67,000 and 31% above that
    • Maximum labor tax credit increases to €5,025 (from €4,260) as of 2023
    • Codification of restoration of rights in Box 3
    • Income-dependent combination tax credit (inkomensafhankelijke combinatiekorting; IACK) phased out as of 2025
    • General tax credit decreased based on aggregate income as of 2025
    • Average salary plan repealed as of 2023
    • Tax-deferred retirement reserve phased out as of 2023
    • Quicker decrease of self-employed persons deduction as of 2023
    • Cap on deductible periodic donations as of 2023
  • Payroll tax and social security contributions
    • Limited use of 30% ruling for salaries above €216,000 as of 2024
    • Fixed exemption for the first €400,000 of the payroll for tax purposes set at 1.92% (fixed exemption for the payroll above that amount remains at 1.18%)
    • Untaxed kilometer allowance increases to €0.21 per km in 2023 and to €0.22 km as of 2024
    • Easing of normative salary for innovative start-ups as of 2023
    • Codification of using compulsory retirement provision to purchase an annuity after the commencement date
    • Efficiency margin normative salary scheme repealed as of 2023
  • VAT
    • Reduction in VAT on supply and installation of solar panels to 0%
  • Excise and consumption taxes
    • Extension of reduced excise duties on fuel until 1 July 2023
    • Increase in consumption tax on non-alcoholic beverages as of 2023 (mineral water excluded as of 2024)
    • Increase in excise duty on beer and tobacco as of 2023 and 2024
  • Miscellaneous
    • General real estate transfer tax rate increases to 10.4% (from 8%) as of 2023
    • Vehicle tax exemption for business vans phased out as of 2025 (with the exception of zero-emission vans)
    • Increase in air passenger tax

Read a September 2022 report prepared by the KPMG member firm in the Netherlands

2023 Tax Plan schedule

After a series of technical briefings and legislative consultations, the 2023 Tax Plan package is scheduled to be voted on 10 November 2022.

Read a September 2022 report (Dutch) prepared by the KPMG member firm in the Netherlands


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