Netherlands: 2022 Spring Memorandum proposed tax measures

Proposals for the 2023 budget to be presented to Parliament on Budget Day

Proposals for the 2023 budget to be presented to Parliament on Budget Day

The Minister of Finance submitted the 2022 Spring Memorandum to the lower house of Parliament outlining proposals for the 2023 budget to be presented to Parliament on Budget Day.

The government has proposed a number of tax measures in the 2022 Spring Memorandum including:

  • Reduction in the step-up corporate income tax bracket of 15% from €395,000 to €200,000 with effect from 2023.
  • Introduction of two tax brackets in Box 2 with effect from 2024. The first €67,000 in income (per person) from substantial interest (Box 2 income) would be taxable at 26%; any excess would be taxable at 29.5%.
  • Decrease in the general tax credit with effect from 2025 on a taxpayer’s aggregate income, which is the total income in all three boxes. As it stands, the decrease of the general tax credit is based on a taxpayer’s Box 1 income (income from work and home) only.
  • Cancel the planned step-by-step increase in the Box 3 tax-free amount to about €80,000 as outlined in the coalition agreement. The current tax-free amount is €50,650 (for married or civil partners, €101,300).
  • Increase in general real estate transfer tax rate to 10.1% (from 8%) as of 2023.

Read a May 2022 report prepared by the KPMG member firm in the Netherlands

 

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