Dutch Senate adopts most components of 2024 Tax Plan Package

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Back to outline Tax Plan 2024

2024 Tax Plan Package

On 19 December 2023, the Senate passed a large number of tax bills. Except for the 2024 collective Act for tax purposes and the 2024 Minimum Tax Act, these bills are included in the 2024 Tax Plan Package, which was submitted to the on Budget Day.
 

• 2024 Tax Plan
• Tax Plan for the BES Islands
• Other 2024 tax measures
• Collective Act for tax purposes
• 2024 Minimum Tax Act
• Amendment of mutual funds and exempt investment institutions
• Amendment of fiscal investment institutions
• Tax qualification policy of legal forms
• Climate-related tax measures for greenhouse horticulture
• Revaluation of compensation of costs of WOZ and BPM legal proceedings
• 2024 amendment of business succession tax facilities
• Temporary rules on revision of income tax returns
• Reduction of personal contribution for housing benefit
• Not phasing out of double general tax credit in reference minimum wage
• Step-up of child-related budget in connection with purchasing power support

As the bill on Climate-related tax measures for electricity and industry was rejected, it will not be implemented. One of the components of this bill was the abolition of the energy tax exemption on natural gas consumption in metallurgical and mineralogical processes, and the abolition of the exemption for dual and non-energy consumption of coal in the coal tax.

The majority of the adopted bills will come into force 1 January 2024, although several measures will not actually come into force until a later date. This includes certain components of the 2024 Amendment of Business Succession Tax Facilities Act, the Legal Forms Tax Qualification Policy Act, the Amendment of Mutual Funds and Exempt Investment Institutions Act, and the Amendment of Fiscal Investment Institutions Act. However, the 2024 Minimum Tax Act already comes into force on 31 December 2023.

2024 rates

The following is an overview of key rates, exemptions and premium percentages for the year 2024.

Corporate income tax rates

The structure of corporate income tax rates will not change in 2024. The rate is 19% up to a taxable amount of EUR 200,000 and 25.8% on the excess. See the table below.

Rates for income tax and national insurance contributions

Box 1 of the income tax has had a two-rate system for some years now. From 1 January 2024, the base rate will rise slightly to 36.97%, while the top rate of 49.50% will not change. People who are paid a state pension will no longer need to pay state pension contributions. Up to a box 1 income of EUR 38,098 (if born before 1946: EUR 40,021), the rate for this group will be 19.07% in 2024.

Introduction of two brackets in box 2

In 2023, the flat rate in box 2 (income from substantial interest) is still 26.9%. From 1 January 2024, however, a two-bracket system will be introduced, with a base rate of 24.5% for the first EUR 67,000 and a top rate of 33% on the excess.

Box 3 rate increase

In box 3 (income from savings and investments), a taxpayer’s assets are divided into three categories: bank and savings deposits, other assets and debts. A separate flat rate of return applies to each asset category. The table below shows the flat rates of return for each asset category. The returns for bank deposits and debts are based on current averages and are not determined until after the end of the year.

On 1 January 2024, the box 3 rate is increased to 36% (2023: 32%). The tax-free assets in box 3 will remain EUR 57,000 in 2024.

National insurance contributions

• The premium percentages for national insurance contributions remain unchanged in 2024 and are 17.90% (State Pension, ‘AOW’), 0.10% (Surviving Dependants Act, ‘ANW’) and 9.65% (Long Term Care Act, ‘WLZ’), respectively.
• The wage assessable for employee insurance schemes is capped at EUR 71,628 in 2024.
• Large employers must pay the high contribution for the Invalidity Insurance Fund (Arbeidsongeschiktheidsfonds, ‘Aof’). This will be 7.54% in 2024. Small employers pay the low Aof contribution of 6.18%.
• The low premium percentage for the General Unemployment Fund (Algemeen werkloosheidsfonds, ‘Awf’) is 2.64% in 2024. This is due for employees with permanent employment contracts for an indefinite period. In other cases, the employer must pay the high Awf contribution of 7.64%.
• The employer’s levy under the Healthcare Insurance Act (Zorgverzekeringswet, ‘Zvw’) in 2024 is 6.57% over a wage for health care insurance of up to EUR 71,628. Persons who are subject to compulsory insurance and who have a different employment income must themselves pay an income related contribution of 5.32% in 2024, on the contribution income of up to EUR 71,628.

 
Rates and exemptions gift and inheritance tax

The gift and inheritance tax rate depends on the kinship to the person from whom an acquisition is obtained. For acquisitions (by virtue of gift or inheritance) by the partner or a child, a rate of 10% up to an acquisition of EUR 152,368 and of 20% on the excess applies in 2024. For acquisitions by grandchildren, these rates are 18% and 36%. For other acquirers, the rates are 30% and 40%, respectively.

The regular exemption for gifts from parents to children will be EUR 6,633 in 2024. However, if the child is between 18 and 40 years old, parents may provide a one-off tax-free gift of EUR 31,813. If the gift is intended to pay for an expensive study of a child, the one-off increased exemption is even EUR 66,268. In other cases, the gift tax exemption is EUR 2,658 in 2024.