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



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.