MOST IMPORTANT TAX CHANGES AS OF 1 JANUARY 2024 IN THE NETHERLANDS

21/12/2023

Most important tax changes as of 1 January 2024 in the Netherlands

On 19th of December 2023, the Senate approved the 2024 Tax Plan package.

The overview of the most important tax changes can be found below.

Increase in the first tax bracket of box 1 and labor tax credit

• The first income tax bracket of 36.93% will increase by 0.04% to 36.97%.
• The employment tax credit will be increased by €115 and the general tax credit will be indexed.

Reduction of self-employed persons' deduction and SME profit exemption

• The self-employed person's deduction will be further reduced from €5030 to €3750.
• The SME profit exemption will be reduced from 14% to 13.31%.

Increase in travel allowance

The tax-free travel allowance will be increased from €0.21 to €0.23 per kilometer.

Introduction of second bracket for box 2

The second bracket in box 2 will come into effect on January 1, 2024. From 2024, 24.5% tax will be paid on the first €67,000 of income per person in box 2. People pay 33% tax on income above €67,000.

Phasing out of the 30% ruling

• As of 2024, the 30% ruling will be limited to the Balkenende standard (€ 233,000 in 2024) and the amount of the exemption will also be gradually reduced. An exemption of 30% of the salary applies for the first 20 months, an exemption of 20% applies for the following 20 months and a 10% exemption applies for the following 20 months.

Reduction of maximum loan from own BV

• Borrowing from your own BV further maximized by reducing the amount from €700,000 to €500,000.

In case of questions, please feel free to contact NAZALI (nazali_amsterdam@nazali.com).

References:

https://www.rijksoverheid.nl/actueel/nieuws/2023/12/20/belangrijkste-belastingwijzigingen-per-1-januari-2024

https://over-ons.belastingdienst.nl/belastingplan-2024/

https://www.rijksoverheid.nl/onderwerpen/belastingplan

 

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