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The complete guide to Budget Day 2022: Measures for businesses in the Netherlands

Sep 28, 2022
3 min reading time

The government has been criticized for not taking concrete measures to contain the current energy crisis. In his Budget Day speech, the prime minister said he was aware of the "challenge." He also said he would announce a plan in October.

Corporate tax rate goes up

From 2023, companies will start paying the high corporate tax rate sooner. Now the limit for the low rate is €395,000. Next year, the limit will be lowered to €200,000. The low tax rate will also go up from 15 to 19 percent. The percentage for the high rate remains unchanged.

Self-employment deduction accelerated

Since 2020, the self-employed deduction has been gradually reduced each year. The government plans to drastically accelerate the reduction starting in 2023. Thus, the maximum deductible amount will be €900 in 2027. Originally, the end point would not be reached until 2036, with a higher deductible amount (€3,240). In 2023, the deduction will be €5,030. The phase-out is, however, compensated through the higher employment deduction. No changes will be made to the starter's deduction.

Increase in employment tax credit

The earned income tax credit will be increased to €5,052 (is now €4,260). Will you earn more than € 37,626 next year? In that case, the labor discount will be phased out by 6.51 percent. The phase-out will be faster in 2023 than the current 5.86 percent.

Minimum wage rises 10%

In 2023, the minimum wage will be increased by 10 percent.

Tax on wealth increases

The tax on wealth will rise in 1 percent increments over the next few years from 31 to 34 percent in 2025. You pay this tax on things like savings, stocks and other investments. Starting in 2026, there will likely be a switch to a new tax system in Box 3.

Countering excessive borrowing

On Sept. 13, the House of Representatives passed a law to combat excessive borrowing by shareholders from their own companies. Now it is often more interesting to borrow money from the PLC, instead of paying dividends or wages. Income tax in Box 2 can thus possibly be deferred or avoided. From 2023, substantial interest holders must pay income tax in box 2 when they borrow more than €700,000 from their PLC. The 26.9% tax is only charged above this threshold amount. Subject to conditions, an exception does apply to new loans used to finance a private home.

Usual-wage scheme to be adjusted

For the usual-wage scheme of a major shareholder (dga), a wage is determined that is normal for the level and duration of employment. The wage assumed must be at least the highest amount of one of the following:

  • 75% of wages from the most comparable employment
  • The salary of the highest-earning employee at the company or of the highest-earning employee of an affiliated company of the employer
  • At least €48,000

Under the first criterion, there is now a 25% efficiency margin. This may be abolished in 2023. The purpose of the measure is to equalize the taxation of income of entrepreneurs and salaried employees.

Investor transfer tax goes up

If you buy a home that you will not live in yourself, you currently pay 8 percent transfer tax. Next year, this rate will increase to 10.4 percent. This will increase the threshold for investors in homes.

Tax credit on gasoline and diesel

Last April, the excise tax on gasoline and diesel was reduced. This saves 17 and 11 cents per liter, respectively. This reduction will remain in effect until July of next year. After that, this excise tax reduction will be slowly phased out. This will benefit you both business and personal.

The plans in the million note are not yet final. The Senate and House of Representatives still have to vote on them. In addition, politicians are discussing support for companies facing high energy prices. In short, to be continued.

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