Employers

Reverse austerity of the 30% facility

The austerity of the 30% facility in 2024 (30-20-10 scheme) will partially be reversed. As from 1 January 2027, the maximum non-taxable allowance will be 27%. For 2025 and 2026, the rate remains at 30% for all incoming employees. The salary standard increases to € 50,436 and for employees below the age of 30 who have a Master’s degree, to € 38,338. Incoming employees who have made use of the 30% facility before 2024 are covered by transitional law. They will continue to be subject to a 30% rate until the end of the term and the old (indexed) salary standards apply.

Authorisation to change R&D deduction

Companies can get a tax reduction on research and development (R&D) services. To date, R&D rates and tax bracket limits have been bound to changes in the law. It is proposed to make the scheme more flexible, in which it is easier for the Minister for Economic Affairs to amend the scheme. On the basis of the proposal, the Minister may amend both the limit amounts and the deduction rates.

Exemption of private use of public transport pass

The government proposes to clarify the ‘targeted exemption of public transport subscriptions’ measure. If an employer allows an employee to travel for free or at a discounted rate, these costs are specifically exempted, provided that some degree of business use takes place. The targeted exemption therefore also applies to private trips with a right to free travel or a right to a discount from the employer. The targeted exemption has also been extended to non-Dutch public transport.

Take note!

The targeted exemption does not apply to private trips made with a private public transport pass. The same trips made with an employer’s public transport pass are exempt.

The wage cost benefit

The wage cost benefit for low-income employees ceases to apply. For elderly employees too, the wage cost benefit is incrementally being phased out.

Duration of contribution limit for pensions

The fiscal contribution limit for accruing old-age and partner’s pension in the event of death on or after the retirement date remains at 30%, but the calculation is being adjusted. Instead of a term of 100 years, this has now been legally enacted at 60 years. This will provide a more accurate yield expectation that is more in line with the original calculations in the Future Pensions Act (Wet toekomst pensioenen). The amendment is being introduced on 1 January 2025 and will have a retroactive effect to 1 October 2024.

Reparation of Belgian seafarer’s tax levy omission

Based on current law, the Netherlands cannot, in rare situations, levy a tax on a Belgian resident who is employed as a seafarer by a Dutch employer and works entirely outside the Netherlands. A reparation is being made in cases where the Netherlands has tax jurisdiction to levy taxes under international conventions. This legislative proposal already takes account of additional arrangements that the Netherlands wants to make with other countries on the allocation of wages to what is known as working from home days.

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