September 25, 2023

Budget Day (‘Prinsjesdag’) is an annual Dutch tradition that takes place on the third Tuesday of September each year, in which the Dutch government launches its plans for the coming year, including financial plans.

This year, Budget Day took place on 19 September 2023. CIS Management summarised below some of the changes that will be important for Dutch businesses.

Corporate income tax rate remains the same

Just like 2023, corporate income tax rate will remain at 19% for profit up to EUR 200,000 and 25.8% for profit exceeding this amount.

Lowering the profit exemption for small and medium-sized enterprises

Small and medium-sized enterprises can have a part of their profit exempted from taxable income, which is currently 14%. This will be lowered to 12.7%.

Changes on limited partnerships (‘commanditaire vennootschap’)

Currently, ‘open’ limited partnerships where not all partners need to consent to the appointment or replacement of the limited partner were subject to the corporate income tax, whereas the partners were taxed in case of ‘closed’ limited partnerships. This will change as of 1 January 2025 and limited partnerships will no longer be subject to the corporate income tax.

Tax-free travel cost reimbursement to be 23 cent per kilometer

Starting from 1 January 2024, employers in the Netherlands will be allowed to reimburse 23 cent per kilometer for the travel cost of an employee without having to pay additional tax. This maximum amount is 21 cent per kilometer in 2023. This increase also applies for self-employed workers; they will be able to deduct 23 cent per kilometer from their tax return.

Energy investment deduction for entrepreneurs

Companies that invest in environmental-friendly assets can deduct 45.5% of the investment costs from the profit. This regime was scheduled to end on 1 January 2024, but it will be extended for another 5 years until 31 December 2028. However, the deductible percentage will be lowered to 40%.

Please, Contact CIS Management for further information.