Dutch Tax Plan 2024
Dutch Senate Approves Dutch Tax Plan 2024
Yesterday, the Senate approved the Dutch Tax Plan 2024. Below an overview of the key tax changes in compensation and benefits.
1οΈ Β π«ππππ ππ% (π¬ππππ) πΉπππππ
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ππππ - 30%/20%/10% rule, meaning that the tax-free allowance will decrease each 20 months. Transitional law for 30% rulings applicable in December 2023.
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ππππ - Application of tax-free allowance capped over salary of EUR 233,000 (indexed annually), already implemented last year. Transitional law for 30% rulings applicable in December 2022 without interruption.
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ππππ- Abolishment of partial nonβresident status (i.e. no exemption for foreign Box 2 and Box 3 assets). Transitional law up to (and including) 2026 for 30% rulings applicable in December 2023.
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It has been suggested to evaluate the 30% rulingand (partially) reverse the 30% ruling limitations to improve the Dutch economy.
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2οΈ π·πππππππ ππππππ πππ ππππ ππ πππππππππππ πππππππππ (π©ππ π)
An increase from 26.9% to 33% in the tax rate,with 24.5% over the first bracket up to EUR 67,000.
MIPs structured in Box 2 that qualify as lucrative interest now face a combined tax rate of up to 50.3%, exceeding the Box 1 employment income tax rate of (max.) 49.5%.
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3οΈ π·πππππππ ππππππ πππ ππππ ππ πππππππ πππ πππππππππππ (π©ππ π)
An increase from 32% to 36% over the deemed return.
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The increase is relevant for a.o."regular" (unleveraged) employee share plans.
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Any questions or want to discuss? Feel free to reach out.
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#Dutchtaxdevelopments #Taxplan2024 #Employeebenefits #MIPsβ
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π Disclaimer: The above serves as general information and not professional tax advice.