Dutch Government Presents Tax Measures in 2023 Budget
Corporate Income Tax Hike, Substantial Shareholders and "Box 3" Headline 2023 Budget
A 4% increase in the lower rate of corporate income tax, the introduction of a dual tax rate for substantial shareholders and an increase in the tax rate on savings and investment income are the most notable tax measures included in the 2023 Budget that was unveiled by the government today.
Specifically, the government proposes to, from 2023, shorten the bracket to which the lower rate of corporate income tax is applicable from EUR 395,000 to EUR 200,000, while raising that rate from 15% to 19%. The standard rate remains 25.8%.
Substantial shareholders – in short, shareholders with 5% or more of a company's capital – will be subject to two rates of tax: 24.5% on the first EUR 67,000 and 31% on the excess as from 2024. Currently, this group is subject to a flat rate of 26.9%
Savings and investment income ("Box 3 income") is currently taxed at a flat rate of 31%. The government is seeking to increase this by 1 % annually to 34% as from 2025. The allowance will concurrently be increased by about EUR 6,500 to EUR 57,000.
Other key measures proposed include the introduction of a cap on the amount of income that may benefit from the 30%-ruling (as from 2024), an increase in the standard rate of real estate transfer tax from 8% to 10.4% and the phasing out of the tax-deferred pension reserve (FOR) for entrepreneurs.
Further details will be reported in due course.
Note: The Tax Plan 2023 – the official name of the set of tax measures the government proposes – was presented by the Minister of Finance on 20 September 2022. The documents relating to the Tax Plan are available on the government website (in Dutch only).
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