2023 Tax Plan - Outline

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2023 Tax Plan - International Tax Alert

2023 Tax Plan - Budget Day (Prinsjesdag)

On 20 September 2022, the government submitted the 2023 Tax Plan package to the House of Representatives.

20 September 2022

Introduction

On 20 September 2022, the Dutch Ministry of Finance published the government’s tax plan for 2023. The plan includes limited proposals and a few announced measures that are relevant for international companies. The key topics are discussed below.

The bill will be discussed by parliament, but it is expected to be finalized by the end of 2022, taking effect as from 2023.

Webcast Tax Plan

On Wednesday 21 September Corina van Lindonk, Aart Nolten and Eddo Hageman discussed Tax Plan 2023.

View (in Dutch)

Changes to the corporate income tax rate

The Tax Plan 2023 introduces a change in the corporate income tax brackets. It is proposed to lower the first bracket from EUR 395,000 to EUR 200,000. Additionally, the applicable corporate income tax rate for the first bracket (the ‘step-up rate’) will be increased from 15% to 19%. The headline rate of 25.8% remains unchanged.

 

Year 2022 2023
Step-up rate 15.0% (taxable amount up to EUR 395,000) 19.0% (taxable amount up to EUR 200,000)
Headline rate 25.8% (taxable amount above EUR 395,000) 25.8% (taxable amount above EUR 200,000)

Increase in general rate property transfer tax

The general property transfer tax rate will be increased to 10.4% as of 1 January 2023, up from 8%. This rate applies to the acquisition of all property, except for homes that serve as the acquirer’s primary residence. The latter is generally subject to a rate of 2%.

Tightening of the 30% facility

Under certain conditions, employees recruited abroad to be employed by a withholding agent in the Netherlands may apply the so-called 30% facility, under which part of the agreed wage is regarded as a tax-free reimbursement for extraterritorial costs for a maximum of five years. This facility will be limited as of 1 January 2024 to 30% of the standard under the Senior Executives in the Public and Semi-Public Sector (Standards for Remuneration) Act (WNT) (2022: EUR 216,000). Transitional rules apply to employees that benefit from the regime for a maximum of 2 years (2024 and 2025) provided these employees are already subject to the 30% facility in 2022.

Other announced measures

The State Secretary already announced several additions to the above measures which are of interest to international companies. These will either be included in the current tax plans (amendment to the Dutch mining Act) or in the tax plans for 2024 (changes to the regime of fiscal investment institutions).


Amendment to Dutch mining Act

To compensate Dutch households for the increased energy costs, the Dutch government proposes to temporarily introduce an additional cijns rate. Cijns is a fee on the turnover generated from the production and exploration of oil and gas in the Netherlands. The temporary cijns rate of 65% will apply on turnover specifically generated from the sale of natural gas at a price higher than EUR 0.50 per m3 during 2023 and 2024. The Dutch government expects to be able to conclude agreements with oil- and gas producers to replace the additional cijns rate with a solidarity contribution from these producers over 2023 and 2024.

Besides this measure, the European Commission announced on 14 September 2022, among others, a temporary solidarity contribution on excess profits realized by companies in the financial year 2022 generating at least 75% of their turnover in the oil, gas, coal and refinery sector. As a result, profits realized by these companies in 2022 which are above a 20% increase on the average profits of the previous three fiscal years, should then be subject to a tax rate of at least 33%. As this is a recent development, the Dutch government is in the phase of considering its response.


Changes to the regime of fiscal investment institutions

Entities that are subject to corporate income tax and that engage in investments can opt for the regime of the fiscal investment institution (fiscale beleggingsinstellingen, fbi’s), provided certain conditions are met. The taxable results of a fiscal investment institution are subject to a zero rate. In order to benefit from the regime, as of 2024 it is no longer allowed to directly invest in property (either located in the Netherlands or abroad).

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