The coalition parties of the new Dutch government (PVV, VVD, NSC and BBB) released their general agreement and budgetary annex on 16 May, 2024, outlining the government’s tax plans.
The key measures include:
- Retaining the tax-free share buyback facility for listed companies from 1 January, 2025.
- Raising earnings before interest, taxes, depreciation, and amortisation (EBITDA) interest deduction limit from 20% to 25%.
- Maintaining the SME profit exemption rate at 12.7% in 2025, instead of reducing it to 12.03% as planned for 2025.
- Raising the general unemployment insurance (AWF) contribution by 0.1 percentage points from 2026 for permanent and flexible contract workers.
- Raising the gambling tax from 30.5% to 37.8% starting in 2025.
- Establishing a third tax bracket for wage and income tax.
- Lowering the top bracket rate for box two income from 33% to 31% in 2025.
- Eliminating the reduced VAT rate for accommodation from 2026, increasing it from 9% to 21% with an exemption for campgrounds.
- Abolishing the reduced VAT rate for cultural goods and services from 2026, raising it from 9% to 21%, except for daytime recreation and cinemas.
