On 20 September 2022 the Dutch government has published its Budget Day proposals. The Budget Day proposals contain the Dutch government’s budget for 2023 and announces tax proposals for calendar year 2023 and onwards.

What impact will this have on your company or organisation? BDO's experts provide clear explanations. Download our extended update with the most important changes below.
 

Read the extended update

In terms of the proposed amendments to domestic legislation per 2023, its international impact is markedly small: the lower tax bracket of the Dutch CIT will decrease and its rate increased. This alteration results in a substantial increase of CIT due for (predominantly) SMEs. 

Legislation proposed by the EU may be of more importance. For instance, the ‘Unshell Directive’ targets entities in the EU that do not conduct economic activities and the Pillar Two Directive seeks to establish a global minimum effective tax rate of 15% for multinational entities.

Please see the relevant proposals below:

• The Dutch government has proposed to lower the first income bracket in the Corporate Income Tax (CIT) from € 395,000 to € 200,000 and to increase the CIT rate on this first income bracket from 15% to 19% per 1 January 2023. 
• Per 1 January 2024, the conditional withholding tax on interest and royalty payments to entities that are residents of low-tax jurisdictions and in instances of tax abuse will be extended to include dividend payments. The conditional withholding tax rate is equal to the highest CIT rate.
• The Dutch government expects to implement additional measures targeting ‘dividendstripping’ by 1 January 2024 at the earliest.
• The European Commission has proposed a Directive (‘ATAD3’) to prevent tax-evasion and tax-avoidance practices by entities that are resident of an EU member state but do not conduct any economic activities (‘shell entities’). The proposed Directive will, inter alia, prevent shell entities from taking advantage of tax treaty or EU directive tax benefits. If implemented, ATAD3 will be in force per 1 January 2024.
• The standard real estate transfer tax rate (i.e. real estate that is not purchased by a natural person to will be used as the person’s main residence) is expected to increase from 8% in 2022 to 10,4% per 1 January 2023.
• The Dutch government has announced a two-bracket system on income from substantial shareholdings in the Dutch Personal Income Tax Act. In 2022 a standard rate of 26,9% applies to aforementioned income. It is envisaged that per 1 January 2024 the first EUR 67,000 of income from substantial shareholdings per person will be taxed at a rate of 24,5%. Any income exceeding the aforementioned income per person will be taxed at a rate of EUR 31%.
• The Dutch government has announced plans to introduce a “windfall tax” for entities in the energy sector that profit from the high prices on gas. It is expected that a higher tax rate will be levied on the profits derived from the sale of natural gasses where the price exceeds € 0,50 per m3.
• It has been (re)confirmed that the 30%-scheme will be reduced from 30% of the persons taxable wage to the maximum set in the Standards for Remuneration Act per 1 January 2024 (in 2022 the maximum is set at € 216,000).