Netherlands: The Dutch Spring Memorandum (Voorjaarsnota)

In short

On May 20, 2022, the Dutch government released its annual Spring Memorandum (Voorjaarsnota), containing an update to the budget for 2022 and the government’s fiscal plans for 2023 and beyond. The spring memorandum outlines the administration’s policy intentions. These will then be debated in the Dutch lower house, after which they can be turned into a bill. The bill would then have to go through the regular parliamentary process before being passed into law.

Below, we summarize the most important measures proposed with regard to Dutch wage and income tax legislation.


  1. Payroll tax
    1. Tax-free travel allowance
    2. 30% ease
  2. Income tax
    1. Box 2
    2. Box 3
    3. Retirement tax reserve
    4. Tax credits

Payroll tax

Tax-free travel allowance

The government agreement of December 15, 2021 had proposed an increase in the tax-free travel allowance. This increase is brought forward by one year. The amount of the increase is not yet clear, but it is likely to increase to EUR 0.21 per business kilometer next year and to EUR 0.23 per business kilometer in 2024. Currently, employers can reimburse 0.19 EUR per professional kilometer tax-free.

30% ease

The 30% facility is a Dutch tax benefit which is available to a particular group of employees (often referred to as expatriates), who have been recruited from abroad to work in the Netherlands. Based on this facility, 30% of Dutch taxable wages can be paid as tax-free compensation for so-called offshore costs for up to five years, provided additional conditions are met. The Dutch government proposes to limit the maximum salaries on which the 30% facility can be applied. This maximum could coincide with the so-called Prime Minister’s salary standard (Balkenendenorm), which in 2022 amounts to 216,000 euros gross per year. If approved, this measure would be phased in over a three-year period starting in 2024.

Income tax

Box 2

For the taxation of so-called substantial holdings (i.e., in short: 5% or more of any class of shares of a company, also called “box 2” tax), the administration intends introduce two tax brackets from 2024. The first bracket should have a base rate of 26% on the first 67,000 euros of income per taxpayer, and the second bracket of 29.5% on the excess amount.

In addition, the Dutch government proposes to reduce the so-called efficiency margin to determine the usual salaries that must be paid each year as a taxable benefit to major shareholder-directors (DGA). The efficiency margin makes it possible to pay DGAs a taxable benefit lower by a certain percentage than the salary considered normal for the level and length of employment of the DGA. This margin will be reduced from 25% to 15%, as a result of which the tax burden on the DGA’s earned income (“Tax ‘Box 1’“) should increase.

Box 3

The Dutch Supreme Court recently ruled that the Dutch return on capital tax (“‘Tax box 3′“) entails a violation of the first protocol of the European Convention on Human Rights and of Article 14 of the European Convention on Human Rights. The Spring 2022 memorandum confirms that taxpayers who have filed an objection in timely against their box 3 tax notices for 2017, 2018, 2019 and/or 2020 (“eligible tax contributions from box 3“), should be compensated according to the so-called savings variant. This involves a revised calculation of their presumed taxable yield in box 3, based on the actual composition of their assets in box 3. The savings variant works with three distinct presumed incomes: (1) from savings, (2) from debts and (3) from other assets For savings, the interest rates for savings for the years 2017 to 2022 should be used , for debt mortgage interest and for other assets, the average annual multi-yield rates of investments.Compensation will also be extended to eligible tax assessments in box 3 that are not yet final. timely object to Box 3 eligible tax assessments, but who disagree with the proposed compensation, may submit a formal request A decision is still pending on whether compensation will be awarded to taxpayers that i did not object, or did not object at all in a timely manner, to the qualifying tax assessments in Box 3.

The government agreement of December 15, 2021 had proposed a measure to increase the tax-exempt amount of Box 3 in three stages from EUR 50,650 currently to around EUR 80,000 in the long term. However, this increase will be cancelled.

Retirement tax reserve

On the basis of the so-called old-age tax reserve (FOR), persons who are entrepreneurs for Dutch income tax purposes can currently build up an old-age pension in a tax-facilitated manner, provided that certain conditions are met. fulfilled. However, the administration intends to abolish this FOR from January 1, 2023, any FOR already constituted can still be liquidated on the basis of the rules in force.

Tax credits

General tax credit

In addition to income from box 1, from 2025 income from boxes 2 and 3 can also reduce the general tax credit. As a result, persons whose income mainly falls under box 2 or box 3 may benefit from a lower reduction on the amount of tax payable.

Senior citizen tax credit

The government agreement of December 15, 2021 had proposed an increase in the tax credit for the elderly. However, this increase will be reversed, which should mainly affect middle (high) income seniors. People with low incomes generally do not qualify for any senior tax credit, and people with higher incomes do not normally qualify for the senior tax credit.

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