What Budget Day 2023 means for your business
On Tuesday, 19 September the Dutch government presented its tax plans for the coming year. We’ve summarised the most important announcements for you and your business.
Travel costs and transport
As well as increasing the tax-free travel allowance from €0.21 to €0.23 per kilometre, the government is making it easier for employers to provide their staff with public transport season tickets for business travel. From 2024, employees will no longer be taxed on these tickets.
Electric cars for business travel
From January 2024, businesses can once again apply for subsidies of up to €5,000 when buying or leasing electric company cars. A total of €21.3 million has been set aside for 2024 under the Subsidy Scheme for Zero-emission Commercial Vehicles (SEBA).
From 1 January 2025, the government is also planning to increase the tax on private motor vehicles by around €200. The proceeds will be used for a scheme to subsidise purchases of second-hand private electric cars and so make buying such cars more attractive.
Taxes
Corporate tax
The standard corporate tax band and rate will stay the same in 2024. This means corporate profits up to €200,000 will be taxed at the standard rate (19%), with any profits above that level being taxed at 25.8%.
Substantial shareholding
Shareholders with a substantial holding (5% or more) in a company will be taxed at 24.5% on income of up to €67,000, while any profit distributions and dividends above that level will be taxed at 31%.
SME profit exemption
The profit exemption for SME businesses will go down from 14% to 12.7% so as to reduce the difference in the income-tax treatment of employees and entrepreneurs. This will mainly impact on higher-earning entrepreneurs, who will now pay tax on a larger share of their profits or income.
Self-employed allowance
The annual allowance for self-employed contractors is being reduced from €5,030 to €3,750. This means entrepreneurs paying income tax will pay more. However, the tax credits and bands for 2024 are being indexed at 9.9%, which is higher than before and so represents a tax reduction for entrepreneurs.Belastingen
End of income tax discount
Until now, entrepreneurs paying provisional tax assessments in a single instalment got a discount. But this will end in 2024.
Sustainability
Deduction for energy investments extended
The deduction available to businesses investing in sustainable energy is being extended for 5 years to 2028, although the deductible percentage will go down from 1 January 2024 from 45.5% to 40%. This deduction for investments in energy-saving and sustainable assets (minimum investment: €2,500; maximum: €136 million) means investments in energy-saving measures will continue to receive tax-friendly treatment.
Keeping up-to-date
Over the next few days, Parliament will hold the general debates that follow publication of the budget, as well as discussing the Budget Memorandum and the central government budget. By 1 January 2024, the House of Representatives and the Senate have to have approved the budget and the plans that have been announced.
To stay up-to-date, follow us on this page over the coming weeks. We’ll be posting regular updates.
