Coalition agreement

Coalition agreement 2024: key fiscal changes

Fabian Gonesh
Het coalitieakkoord 2024 de belangrijkste fiscale wijzigingen
On the night of May 15-16, 2024, the new cabinet, consisting of PVV, VVD, NSC and BBB, reached an outline agreement and presented their budget plans. This agreement places much emphasis on tax cuts and livelihood security. Citizens can expect significant tax cuts and – if it is up to the said parties - it should become more rewarding to work again. There is also an explicit focus on the contribution of entrepreneurship and business to our economic growth. Some of the tax increases announced on Budget Day (Prince’s day) may be partially reversed.

Regarding tax schemes, the main measures are listed below:

  • Reverse measure to include the repurchase of (own) shares as a taxable event in the Dutch dividend withholding tax act
  • Reverse measure to reduce the SME profit exemption in the Dutch income tax act from 12.7% to 12.03%
  • Reduce the income tax rate in box 2 from 33% to 31% (tax on substantial interests)
  • Reduce the income tax rate in box 3 (income from savings & investments)
  • Expand interest deduction limit of the earning stripping rules in Dutch corporate income tax from 20% of the EBITDA to 25% of the EBITDA
  • Abolish reduced VAT rate on accommodation - excluding camping sites
  • Abolish equalization scheme for small consumers (as of January 1, 2027 in one go)
  • Limit income tax and corporate gift deduction and corporate giving
  • Increase AWF premium high (flex and permanent contracts) by 0.1% (as of January 1, 2026)

The parties expect to take about four weeks to put together the ministerial team. Working out the outline agreement and next year's budget is expected to take all summer.