Prinsjesdag 2023 (Budget Day)

Last Tuesday was Budget Day. The government announced its plans and budget for 2024. This week there are the General Considerations in which the plans and budgets can be adjusted.
An important point is that the government is releasing 2 billion for poverty reduction. By increasing the employment tax credit, people around the minimum income will have more net money left over. This is financed by a limited indexation of the rate brackets, so that higher incomes pay proportionately more tax.

Other highlights we would like to highlight:

• Travel allowance will increase from €0.21 to €0.23 in 2024
• SME exemption decreases from 14% to 12.7%, causing IB entrepreneurs to pay more tax
• Tax box 3 increases from 32% to 34%
• In 2028, the classic car tax scheme will only be valid for cars built before 1988.
• Energy investment deduction is extended until 2028, but the percentage deduction decreases from 45.5% to 40%
• Gift deduction for companies will be abolished
• Dividend from box 2 is taxed in 2 brackets, 24.5% up to € 67,000 and 31% on the excess
• Increase in employment tax credit by €115 per year, causing low incomes to rise
• Rate writing limits indexing, causing higher incomes to pay more tax
• Introduction of capital gains tax postponed to 2027
• Tax-free capital remains €57,000 per person
• More money available for energy and environmental investment deductions and WBSO

Any questions? Please contact your Kop of Munt relationship manager.