On 5 April 2024, the Dutch Ministry of Finance released a letter to the Senate outlining the decision to retract specific policies previously approved under the 2024 Tax Plan. The measures include:
- From 1 January 2024, the 30% ruling regime for expatriates will be modified allowing for an exemption of up to 30% on employment income for the first 20 months, followed by 20% for the next 20 months, and 10% for the final 20 months;
- From 1 January 2025, the tax-free share buyback facility for listed companies will be repealed. As a result, the deemed distribution of reserves for share buybacks by Dutch tax resident listed entities will incur a dividend withholding tax of 15%;
- The top tax rate on individual Box 2 income will be raised from 2024;
- The tax rate on individual Box 3 income will be increased from 2024;
- The bank tax (levy) will be increased from 1 January 2024.
On 19 December 2023, the Dutch Senate (upper house of parliament) passed the Tax Plan for 2024, which includes the Pillar 2 global minimum tax and other tax measures.
