The Dutch government’s 2027 Tax Plan introduces changes to corporate taxation, innovation incentives, start-up relief, excise duties, VAT, transport taxes, and individual income tax from 2026 through 2029.
The Dutch government presented the 2027 Budget, including the Tax Plan for 2027 (Belastingplan 2027), on 15 September 2026.
Corporate adjustments
From 2027, embedded currency hedging results on participation investments will no longer qualify for the participation exemption.
Tax changes for entrepreneurs and businesses
- Carbon and waste tax timelines pushed back: The Netherlands has postponed its industrial CO2 levy target from 2030 to 2035 (EUR 304 per ton for waste incineration plants) and cut the waste tax increase to EUR 23.75 per ton in 2028, down from EUR 53.25 per ton.
- Forestry exemption abolished: The forestry profit exemption ends on 1 January 2029, generating EUR 34 million that year and EUR 35 million annually after.
- Pillar Two safe harbours introduced: Pillar 2 safe harbour rules (including Side-by-Side, UPE, and Simplified ETR provisions) take effect retroactively from 2026 under the Wetsvoorstel Wet aanvullende veiligehavenregels Wet minimumbelasting 2024.
Innovation and sustainability measures
- Expansion of innovation Box SME lump-sum cap: The lump-sum threshold for the SME innovation box increases from EUR 25,000 to EUR 100,000 per year starting 1 January 2027.
- Real estate transfer tax reduction for investors: The transfer tax rate for residential properties not used as a primary residence (investors/landlords) is reduced from 8% to 7% from 1 January 2027.
- Transfer tax exemption for social housing corporations: A targeted transfer tax exemption is created for social housing (DAEB) property transfers between housing associations effective 1 January 2027.
- Energy investment allowance: EIA deduction increases from 40% to 45.5% from 1 January 2027 to encourage business energy efficiency.
Measures for start-up entrepreneurs
- Employee stock options: Tax rules will be simplified and deferred from 2027 under measures for startups and scale-ups.
- Start-up deduction: The deduction falls to EUR 10 in 2027 and will be abolished from 1 January 2028.
- Accelerated depreciation: The special accelerated depreciation scheme for startups will end on 1 January 2028.
- Disability start-up deduction: The deduction for disabled entrepreneurs will be abolished from 1 January 2029 due to low use and high administrative costs.
Tax changes for products and services
- Fuel excise duty: Temporary petrol excise relief is extended to 31 December 2027.
- Flight tax: Distance-based rates begin in 2027, with the highest rate reduced to EUR 59.43 per passenger from 1 January 2027.
- Alcohol excise duty: Inflation indexation starts from 1 January 2027.
- Small breweries: The 7.5% excise duty discount for small independent breweries will end from 1 January 2028.
- Tap water tax: The tax will rise by EUR 0.10 per m³ from 1 January 2027 to EUR 0.537 per m³.
VAT rate alignments
- Floriculture VAT: VAT on flowers and plants will increase from 9% to 21% from 1 January 2028.
- Hot air ballooning VAT: Balloon flights will move from 9% to 21% VAT from 1 January 2028.
Motor vehicle & transport taxes
- Youngtimer scheme: Existing users retain current tax treatment for one additional year in 2027, while the eligibility age threshold will be reduced to 20 years from 2029.
- Motor vehicle tax relief: Entrepreneur delivery vans receive a 50% MRB reduction, while heavy goods vehicles receive a zero rate for the second half of 2026.
- Truck charge: Truck charge rates are reduced by 22.3% from 1 September to 31 December 2026 to offset higher fuel costs.
Individual income tax measures
- Higher tax-free travel allowance: The maximum tax-free travel allowance will rise from EUR 0.23 to EUR 0.25 per kilometre, retroactive to 1 January 2026.
- Pension accrual cap frozen: The EUR 137,800 income cap for tax-favoured pension and annuity accrual will remain unchanged from 2027 through 2032.
- Staff discount exemption abolished: The EUR 500 annual tax-free exemption for employee discounts on employer-produced goods will be abolished from 1 January 2027.
- Healthcare cost deduction abolished: The income tax deduction for specific healthcare expenses will be fully abolished from 1 January 2028, reducing compliance burdens and raising additional revenue.
