Netherlands: 2024 Tax Plan package adopted by Lower House of Parliament
Package includes the 2024 Tax Plan as well as a considerable number of other tax amendments and motions
Package includes the 2024 Tax Plan as well as a other tax amendments and motions
The caretaker government on Budget Day (19 September 2023) presented the “2024 Tax Plan” with proposed indirect and direct tax measures to the Lower House of Parliament. Read TaxNewsFlash
The most significant proposed changes in the 2024 Tax Plan, which are generally proposed to become effective 1 January 2024, relate to payroll taxes and social security contributions. Read TaxNewsFlash
The Lower House of Parliament on 27 October 2023 adopted the 2024 Tax Plan package, which included the 2024 Tax Plan as well as a considerable number of other tax amendments and motions. The Lower House specifically adopted the following 17 tax-related bills:
- 2024 Tax Plan
- 2024 Tax Plan BES Islands
- Mutual Fund and Exempt Investment Institutions (Amendment) Act
- Fiscal Investment Institution (Amendment) Act
- Legal Forms Tax Qualification Policy Act
- Selective Intake Compensation Act
- Reassessment Legal Costs WOZ and BPM Act
- Business Succession Tax Relief (Amendment) Act 2024
- Temporary Scheme Revision of Personal Income Tax Return Act
- Other Tax Measures 2024
- Climate Tax Measures for Glasshouse Horticulture
- Climate Tax Measures Electricity and Industry Act
- Personal Rent Allowance Contribution (Reduction) Act
- Amendment of the Surviving Dependents Act and the Participation Act in connection with the double general tax credit in the reference minimum wage not being phased out in 2024
- Amendment of the Child-related Budget Act to increase the child-related budget as a means of improving consumer purchasing power
- Minimum Profit Tax Act 2024
- Tax Miscellaneous Provisions Act 2024
In addition, several Memorandums of Amendment were published and are now part of the adopted bills. Several of these memorandums only contained technical and/or editorial changes, but others introduced substantive changes.
Notable changes to the 2024 Tax Plan made by the Lower House include:
- Increase in the rates in Box 2 (33% for income from a substantial interest exceeding €67,000) and Box 3 (36% as of 2024)
- Lowering of the threshold for excessive borrowing from the own company to €500,000
- Further scaling back of the 30% ruling
- Abolition of the partial foreign taxpayer status
- Abolition of tax relief for the redemption of shares for dividend tax purposes
Next steps
The adopted amendments are now being incorporated into the bills, after which they will be debated in the Upper House of Parliament in the coming weeks. Unlike the Lower House, the Upper House cannot make any changes, but can only adopt or reject the bills in their entirety. The Upper House will vote on the bills in mid-December 2023.
Read an October 2023 report prepared by the KPMG member firm in the Netherlands
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