As usual on Budget Day (Prinsjesdag), the Tax Plan (Belastingplan) for 2024 was unveiled on the third Tuesday of September. Because we currently have a caretaker government, the proposed plans for the coming year are somewhat more restrained than usual. Nevertheless, there are important announcements that matter for entrepreneurs. What should you keep an eye on in the coming period? Below we give an overview of the main changes:
Income tax – Box 1:
- Mileage allowance
As in 2023, the mileage allowance (kilometervergoeding) is going up in 2024. From 1 January 2024, the allowance rises to €0.23 per business kilometre, instead of the previous €0.21. This only applies to business kilometres you travel with your private car or bicycle.
- Self-employed deduction
The phasing down of the self-employed deduction (zelfstandigenaftrek), a measure introduced in previous years, is continuing. The deduction falls from €5,030 in 2023 to €3,750 in 2024. This is part of the effort to narrow the tax differences between working as an employee and being an entrepreneur.
- SME profit exemption
The SME profit exemption (mkb-winstvrijstelling), a deduction for entrepreneurs, is being reduced from 14% to 12.7%.
- Tax rates
Box 1 has two tax brackets with different tax rates. The rate in the first bracket, for income up to €75,624, rises to 36.97% in 2024, an increase of 0.04 percentage points compared with 2023. The rate in the second bracket, for income above €75,624, remains unchanged at 49.50%.
- Employed person's tax credit
The employed person's tax credit (arbeidskorting) is being increased by €115 as part of the purchasing power package, bringing the maximum benefit to €5,553.
Provisional assessment: The discount for paying the provisional income tax assessment (voorlopige aanslag) in full in one go is being abolished.
Wealth tax – Box 3
There has been a lot of discussion recently about how the tax in Box 3 is calculated. Currently, tax is levied on the basis of a notional return on your private assets, determined on 1 January. According to the law, however, this is incorrect, and tax should be levied on the basis of the actual return achieved. Although these new rules were originally due to take effect in 2026, their introduction has been postponed to 2027, with a transitional arrangement for the period 2022-2026. As a result of this postponement, the Box 3 tax rate is being raised to 34% in 2024, compared with the previous 32%.
All in all, quite a few changes. If you can't work it out or would like more information – don't hesitate to get in touch!