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Financial tips


In 2024, the WKR will be reduced

In 2023, the working allowance (WKR) rate is 3% up to a wage bill of €400,000 and above 1.18%. In 2024, the rate is reduced to 1.92% up to
€400,000 and on the excess the free space remains 1.18%. This may make it convenient to take into account items that would potentially be reimbursed in 2024 already in 2023.

Bonuses can be brought into the free space up to € 2,400 without substantiation. This applies to staff and to the DMS. This amount may be given freely, without payroll tax as far as the free space allows.

If you would like to take advantage of this, please contact our payroll specialist.

Gift deduction BV

Arrange gift to ANBI before January 1

In corporate tax, it is now still possible to make a deductible annual gift of up to €100,000. This gift is deductible for 50% from the profit. If you want to make a gift to an ANBI through a private limited company, you can still use the gift deduction until January 1, 2024. The deduction will be processed through the 2023 corporate tax return.

Annual space 2023

Utilize annual space 2023

Annuity accrual was brought into line with the Pension Act in 2023, retroactive to Jan. 1. As a result, from 2023, the options for accumulating annuity capital have been widened. The main changes are as follows:

  1. The annual percentage allowance goes up from 13.3% to 30%.
  2. The reserve margin becomes a fixed amount of up to €38,000.

The deadline for the reserve space is extended from 7 to 10 years.
As a result, evaporated annual leave for the years 2013 and 2014 can still be used

Building up annuity capital can be interesting for the DMS as a pension provision or as a supplement to the pension for salaried employees. Please note that the premium must be deposited into an accrual product with an insurer or bank before December 31, 2023. For completeness, we note that some providers may apply a deadline for the deposit.

How much annuity capital can be built up in 2023 depends on the taxable income in Box 1 2022. If you want to know whether this is interesting in your personal situation and how much you can lay down, a calculation can be made.

Ask this question by Dec. 11 Monday so that you receive the outcome in a timely manner.


Rates of dividend payments from substantial interest change

Starting in 2024, the rates for dividend payments from a substantial interest will change. A substantial interest exists if you own more than 5% of the shares in a company. The taxation of the substantial interest is through Box 2.

Income in Box 2 Rate
< € 67,000 (for tax partners < € 134,000) 24.5%
> € 67,000 (for tax partners > € 134,000) 33%

For distributions up to €67,000, it is fiscally beneficial to make the distribution after December 31, 2023. For higher amounts, it may be more advantageous to make the distribution before year-end. Whether this is actually the case depends on the personal situation of the substantial interest holder and of the BV. For example, the BV must have sufficient liquidity and the reserves must meet the requirements for a dividend distribution.

If you would like to make a dividend distribution before the end of 2023, please contact your relationship manager. If you would like advice in advance, we are also happy to assist you with this.

Budget Day 2023

All tax plans listed

Yesterday during Budget Day, the fiscal plans for 2024 were presented.

The measures announced include:

  • purchasing power;
  • increase excise tax rates;
  • tightening the business succession regime (BOR);
  • reduction SME profit exemption.

Below we have highlighted some important measures that may have tax implications for you. If you would like to see all Tax Plans, please click here.

Reduction in SME profit exemption

The government wants to reduce the SME profit exemption from 14% to 12.7%. The SME profit exemption reduces taxable profits. If the company incurs a loss, the SME profit exemption reduces the tax loss.

Mutual fund change

For a mutual fund (fgr) to remain independently taxable for corporate income tax purposes, it must meet a new condition as of Jan. 1, 2025. Namely, it will then have to be a qualifying investment fund or fund for collective investment in securities.
Share ownership must be evidenced by negotiable evidence of share ownership.

Reduction of free space working allowance

In 2023, the free margin for the work expense scheme will be 3% of the wage bill for tax purposes up to €400,000. Over the part of the wage bill for tax purposes that exceeds
€ 400,000, the free space is 1.18%. The law erroneously stated that the maximum amount of the free space in the first bracket in 2023 is €6,800 (instead of €12,000). This will be retroactively changed to
January 1, 2023 restored, which will make the maximum amount in the first bracket equal to 3% of €400,000.
From 2024, the percentage of the free space will be reduced from 3% to 1.92% on a taxable wage bill up to €400,000.

Correction deduction limit mortgage interest joint purchase of own home

Under current legislation, if partners decide to first purchase an owner-occupied home jointly and only then sell the home of one of the two partners, this can result in the deduction of (mortgage) interest being limited. It is proposed to amend the law with retroactive effect to Jan. 1, 2022, to prevent this unwanted interest deduction limitation.

Stricter testing of income-dependent combination credit in co-parenting case

The income-related combination credit (IACK) is a tax credit for single or least-earning partners who combine work and care for a child. With co-parenting, the care of the child must be shared equally by the co-parents. Due to a Supreme Court ruling, this was already the case for 78 days of care of the child in a calendar year by one of the co-parents. As of Jan. 1, 2024, co-parents must each care for the child at least 156 days of the calendar year.

New income tax rates 2024

Rates IB 2024 non-AOW worker 
Taxpayers who have not reached state pension age at the beginning of 2024 are expected to face the following rate brackets in 2024.

Income tax rate 2024
Disc low rate €75,624 49.50%

Rates IB 2024 state pensioner
Disc rate 1 € 38,139 75,624 49.50%
* Born before 1946: bracket 1 up to €40,077

Tax Interest
Tax interest has been increased to 6% as of last July 1. One exception is corporate and withholding taxes.

Tax interest is the interest the tax authorities charge for missed interest. When you owe money to the tax authorities, chances are good that tax interest will be charged. This is also the case if you have requested a deferral.

  • File your income tax return later than May 1 and the IRS imposes an assessment after
    July 1, then you owe tax interest.
  • If you file the return after July 1, then tax interest will be charged anyway.

Income tax
To avoid incurring tax interest on income tax, it is important that the preliminary assessment be determined as realistically as possible.

Inheritance tax
As a survivor, make sure that the inheritance tax return or a request for a provisional return is filed as realistically as possible within 8 months of death. If the tax authorities agree, no tax interest will be charged.

Need any help?
Want to minimize tax interest as much as possible? Then enlist our help.

We know the rights and obligations of taxpayers as well as the IRS. Object? We are happy to assist you.

Recovery interest

Recovery interest is the interest charged by the Internal Revenue Service if you do not pay the amount of the assessment within the statutory payment period.

During the corona period, the interest rate was temporarily 0%, but has since returned to 3%. By 2024, even one percent will be added.

Avoid extra charges and so pay on time.

There is often confusion about the deductibility of purchased goods and services. If you use the goods or services for both business and personal use, the private use portion must be adjusted.

Consider the laptop purchased for business but which you also use privately in the evening. Suppose the use is 80% business 20% private then you may only reclaim the VAT for 80%.

Phone and internet bill
The VAT from the portion of the phone and internet bill that you use privately may also not be fully allocated to the business. The VAT is not deductible anyway for:

  • traffic fines
  • VAT on hospitality expenses.

Are you unsure about the deductibility of VAT on goods or services purchased, or need help adjusting for private use? Then take contact with us.

Because of privacy protection and identity fraud, sole traders have received a new VAT identification number (VAT ID) from the Tax and Customs Administration since 2020. This number is no longer linked to the citizen service number (bsn). It is required by law to note the new VAT ID number on outgoing invoices and the website.

We recommend checking this to be sure. A Dutch VAT number starts with NL, followed by 9 digits, the letter B and another 2 digits. Example: NL123456789B01.

Savings, investments and other assets are reported in Box 3. The Tax Office always calculates a fixed (notional) return on those assets.

It probably hasn't escaped your notice that the Internal Revenue Service has changed the Box 3 rules quite a bit. Starting in 2026, the government will tax assets that match actual earnings. This could have quite an impact on your box 3.

In our Box 3 blog we will keep you updated on the latest on the changes announced by the government and how they will affect you.

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More information

Niek Pilgram portrait
Niek Pilgram

tax advisor
+31 (0)35 628 57 53

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