January 14, 2024

Several financial changes are implemented in the Netherlands from the beginning of 2024. You can read below how these changes might affect your business.

Increase in minimum wage

The minimum wage is increased by 3.75% to EUR 13.27 per hour. Up until 2023, there was a separate minimum monthly wage for full-time employees, but monthly minimum wage is abolished from 2024; only the hourly minimum wage will be applicable.

Reduction of 30% ruling benefits

Eligible foreign employees could have 30% of their salary exempted for 5 years from taxation if they met certain conditions. From 2024, 30% of the salary will be exempted as usual only for the first 20 months. During subsequent 20 months, 20% will be exempted and 10% will be exempted during the next 20 months.

Increase in capital gains tax

Tax on the returns of savings, shares and other possessions will be increased from 32% to 36%. In addition, the returns on savings will be assumed to be 1.03% from 2024 (instead of 0.01% in 2023). The first EUR 57,000 will be exempt from such tax.

For example, if someone has EUR 100,000 of savings, the taxable amount is EUR 43,000, 1.03% of which (EUR 442.90) is assumed to be the returns. The tax of 36% will apply to this amount, resulting in EUR 159.44 due in capital gains tax.

Tax-free reimbursement of travel costs to rise

The maximum tax-free reimbursement of employees’ travel cost will be increased to 23 cent per kilometre, whereas it was 21 cent in 2023.

Minimum tax rate for companies

Due to the worldwide initiative which 139 countries agreed to, big companies will need to pay minimum 15% of corporate income tax (‘CIT’) from 2024.

Since the CIT rate starts from 19% in the Netherlands, groups that are only established in the Netherlands will not be affected. However, if a foreign subsidiary of a Dutch holding entity pays less than 15% of CIT in its foreign jurisdiction, the Netherlands will be able to charge extra tax on the parent company to reach the agreed 15%.

Statutory interest rate to rise

For payment arrears, the creditors will be able to demand the interest of 7%, which was 6% in 2023. The maximum interest rate for lending money, instalments and overdrafting will increase to 15%, which was 14% in 2023.

Please, Contact CIS Management for further information.