2023-09-29-KPMG_Global-Netherlands_–_2024_Tax_Plan_Package_Presented_3页_278kb

Key Overview

The Netherlands presented the 2024 Tax Plan Package on September 19, 2023, as part of Budget Day proceedings. KPMG has analyzed the package, highlighting significant changes to payroll taxes and social security contributions.

Major Change: Introduction of a 30% Ruling Cap

As of January 1, 2024, a cap will be placed on the 30% tax-free allowance in employment income. The Works Norm Tax (WNT-norm) for 2024 is €233,000, limiting the tax-free amount to €69,900. This change has been adopted in law but is effective retroactively to 2024.

Impact and Significance

• This cap may increase the top income tax rate to 49.5% for income exceeding €233,000, raising tax liabilities for high earners.
• Potential effects include impacts on employee tax payments, employer obligations, and assignment-related costs, especially if tax equalization is used.
• The measures are intended to take effect on January 1, 2024, unless specified otherwise.

Context and Timeline

• Parliament will discuss and vote on the plan in the coming months, with legislative approval expected by year-end.
• The final proposal will be published in the Government Gazette by late 2023.

Recommendations

• Stakeholders are urged to review their tax planning, budgets, and administrative processes promptly.
• Affected parties should consult with qualified tax professionals or contact GMS/KPMG teams for further guidance.

Contact Information

For additional inquiries, refer to KPMG professionals or utilize available resources, but specific contact details are redirected to standard GMS channels.