Tax measures in coalition agreement 2021-2025

VVD, D66, CDA and ChristenUnie presented on 15 December 2021 the coalition agreement “Looking after each other, looking forward to the future”. Among other things, they announce targeted tax cuts, the development of a new financing system that looks at a larger tax area for the municipalities, and they express their support for the Community proposal for a tax on petroleum. In addition, the parties want to introduce a system of “Payment after use” for all car mobility based on MRB in 2030, where the rate will be made dependent on the number of kilometers driven annually, and they will increase the airline fare. It also heralds the first steps towards simplification and reform of the tax system. Taxes on sugary drinks and tobacco will be increased, and it will be examined whether the VAT on fruit and vegetables can be reduced to 0%. In an international context, the focus is on digital service tax, aviation tax, CO2 limit tax and minimum surplus tax rate to prevent unfair competition between Member States. We also derive the following tax measures from the coalition agreement:

1. Companies and entrepreneurs

  • It has been established that tax on income is only paid on Box 2 when it leaves Box 2, and that this deferral of investment assets can lead to unbalanced situations.
  • The excessive loan bill will be changed and the limit will be raised from € 500,000 to € 700,000.
  • With regard to the business transfer facilities in the inheritance and gift tax and IB, in connection with the evaluation of the business transfer facility, which is to be completed in 2022, it will be examined how the business transfer facilities can be improved and how inappropriate use. of the scheme can be prevented so that the scheme is used for the intended purpose.
  • The self-employed deduction will be further reduced from 2023 in increments of € 650 (including the basic course, last two years in increments of € 605) to € 1,200 in 2030. The self-employed will be more than compensated during the government period through the increase of the employee tax deduction.
  • The CFC measure from “Ter Haar” is being introduced. OECD Pillar II will also be introduced. If this does not lead to the desired savings, another extension of the tax base, the low corporation tax rate and / or the tax framework length in corporation tax will be considered taking into account the business climate and the position in corporation tax. SMV.

2. Power

  • From 2025, a new Box 3 system based on real returns will be introduced, where income from capital is taxed on the basis of actual returns. In anticipation of this, the empty value ratio will be abolished from and including 2023, so that the tax on the return on the rent in Box 3 will be more in line with practice. According to the coalition agreement, this contributes to a more balance in the current tax scheme for private individuals and investors who finance housing for rent in box 3. The proceeds from this, together with an additional budget of € 200 million, will be used. used for financing the exemption in box 3. is increased to approx. € 80,000. In the new Box 3 system, savings and investments will be taxed directly on real returns, but the value development of real estate will initially still be taxed at a fixed rate, switching to actual returns as soon as possible.
  • The gift exemption for owner-occupied housing will be abolished from 2024.
  • The transfer tax for non-dwellings and for acquisitions of dwellings made by legal persons and private individuals who are not to live in the dwellings for a longer period of time will be increased from 8% to 9% from 2023.

Miscellaneous

  • The tobacco tax will be increased to approx. € 10 pr. package.
  • The average scheme in IB will be abolished from 2023.
  • The consumption tax for non-alcoholic beverages (excluding mineral water) will be tightened. To avoid having to pay less excise duty on beer than on soft drinks, the minimum rate for beer is also increased.
  • From 1 January 2024, the tax-free travel allowance will be increased.

Abolition of IACK and landlord tax

  • The income-related combination deduction (IACK) will be abolished for new cases after 2024. This will be done by applying a lower age limit based on the child’s year of birth from 2025. In this way, the IACK will be abolished in 13 years with effect from 2037.
  • The landlord tax will be abolished from 2023.

5. Climate impact

  • The current CO2 tax for the margin industry is tightened through an adjustment of the number of exemption rights and the rate.
  • From 1 January 2023, a minimum CO2 price for industry will be introduced. The minimum price will not act as a fixed fee and will therefore remain below the expected ETS price. Taxpayers are equal to those in the current CO2 tax industry.
  • The tariff structure for the energy tax (EB) is made less degressive by raising the rates in the higher consumption groups for gas and electricity.
  • Compared to the rates in the basic path for storage of renewable energy and climate change (ODE), the ODE tariffs for 2nd and 3rd electricity class will be reduced from 2023.
  • The exemption and reimbursement scheme in EB (natural gas and electricity) for metallurgical and mineralogical processes will be abolished from 1 January 2025.
  • The rate for the 1st gas tranche in EB will be increased by 5.23 cents / m3 in the period 2023-2028.
  • The tariff for electricity in the first fitting in EB is reduced by 5.23 øre / kWh in the period 2023-2028.
  • From 2023, gas suppliers will be obliged to mix a share of green gas into the gas network. This share will increase to 20% by 2030.
  • To compensate for the expected increase in supply rates due to the obligation to mix green gas, the tax component of the energy bill for households will be structurally reduced in 2023 by a target of € 225 million via the EB tax deduction.
  • The input exemption in EB for consumption of natural gas for electricity production is limited for combined heat and power plants (CHP) from 1 January 2025 to natural gas used for the production of electricity supplied to the grid.
  • The reduced rate in EB for greenhouse horticultural companies will be abolished from 1 January 2025.
  • In 2030, an MRB-Plus (mileage pricing) will be introduced with a fixed mileage rate for all passenger cars and vans.
  • The BPM exemption for vans by entrepreneurs will be phased out in three stages from 1 January 2024 to zero in 2026. Thereafter, the standard BPM rate for vans will also apply to entrepreneurs. The exemption for emission-free vans will continue to exist.
  • The air passenger tax will be increased in 2023, so that budget revenues will increase by 400 million euros a year.
  • The EIA budget will be structurally increased by EUR 50 million from 1 January 2023.
  • The budget for MIA will be structurally increased by € 30 million from 1 January 2025.

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