Time flies and 2023 has almost come to an end. Inflation in the Netherlands has been decreasing steadily with the economy still showing some resilience and wage increases realized through negotiations done by labour unions. On 19 December, the Eerste Kamer has agreed on the Belastingplan 2024 or Tax Plan 2024. Below are some of the changes you can expect next year:
- Income Tax (Box 1): The base rate increases in 2024 to 36,97% (36,93% in 2023) for income lower and equal to € 75.518
| € 0 – € 75.518 | > € 75.518 | |
| Tax rate | 36,97% | 49,50% |
- Untaxed Travel Allowance (Box 1): The amount of untaxed travel allowance will increase from 1 January 2024 from € 0,21 to € 0,23 per kilometer. This increase is meant to give the possibility for the employers to reimburse without tax a higher amount in travel allowance to the employees
- Public Transport or OV (Box 1): From 2024, it is not necessary anymore for the employer to keep the administration of the employee’s OV as long as the OV card is used by the employee partly for the business trip. The travel allowance is also exempt from tax
- Limitation on the 30% tax ruling (Box 1): The 30% ruling is a facility for incoming employees or ‘expats’ who have been temporarily living in the Netherlands. Employer may pay out a maximum of 30% of their employees’ taxable salary tax-free which is meant to provide allowance for the extra costs that employees incur while living in the Netherlands. From 1 January 2024, the rule will change, namely, for the first 20 months, a maximum of 30% of salary applies. For the subsequent 20 months, a maximum of 20% of salary applies and the subsequent 20 months a maximum of 10% of salary applies
- Transfer tax rate or startersvrijstelling exemption increase: People who comply with the requirements for startersvrijstelling can enjoy this tax exempt for higher house’s purchase value, which is € 510.000 (€ 440.000 in 2023)
- Tax rate of assets increase (Box 3): The tax-free amount for your assets stay the same as last year in 2023 which is € 57.000 or € 114.000 as fiscal partnership. However, the tax rate increases from 32% in 2023 to 36% in 2024
- Tax-free for gifts is abolished: From 1 January 2024, it is no longer possible to provide gifts for the purpose of buying a house tax-free. This tax exemption used to be called jubelton in Dutch