Netherlands 2024 Statutory Amendments
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On 19 September 2023, the Dutch Ministry of Finance submitted the 2024 Dutch Budget(Belastingplan 2024) to Parliament. If approved, the below amendments will be implemented effective 1 January 2024:
The rate for tax-free travel allowance is currently EUR 0.21 per kilometer. It has been proposed to increase the rate to EUR 0.23 per kilometer. Furthermore, no tax will be payable if an employer provides an employee with a public transport card that they use exclusively for business travel.
The rate for tax-free work from home allowance is currently EUR 2.15 per day. It has been proposed to increase the rate to EUR 2.35 per day.
The 30% ruling, which allows employers to exempt from tax a portion of the wages paid to employees recruited from abroad, may be amended. In addition to the restriction placed by the Balkenende standard, where the 30% ruling may be limited to an annual salary maximum as per the WNT standard, the 2024 budget proposes to abolish the ruling effective 2024. Further, recommendation has been made to gradually decrease the exemption on existing 30% schemes as illustrated below:
- 30% in the first 20 months
- 20% in the subsequent 20 months
- 10% in the final 20 months
The rates for wage tax may be amended as per below:
| Annual income From | Annual income To | No AOW | Born before 1946 | Born after 1946 |
|---|---|---|---|---|
| 0.00 | 38 110.00 | 36.97% | 19.07% | 19.07% |
| 38 110.00 | 40 038.00 | 36.97% | 19.07% | 36.97% |
| 40 038.00 | 75 549.00 | 36.97% | 36.97% | 36.97% |
| 75 549.00 | Above | 49,50% | 49,50% | 49,50% |
The rates for general tax credit may be amended as per below:
| General tax credit | No AOW | AOW age |
|---|---|---|
| Basic credit | €3 362.00 | €1 735.00 |
| Maximum calculation base | €24 812.00 | €24 812.00 |
| Deduction for each € 1 over maximum | 6.630% | 3.420% |
| Reduction complete at | €75 518.00 | €75 518.00 |
The rates for labour wage tax credit may be amended as per below:
| No AOW | |||
|---|---|---|---|
| Bracket from | Bracket to | Rate | Tax credit |
| 0.00 | €11 490.00 | 8.425% | €968.00 |
| €11 490.00 | €24 820.00 | 31.433% | €4 190.00 |
| €24 820.00 | €39 957.00 | 2.471% | €374.00 |
| €39 957.00 | €124 934.00 | -6.510% | -€5 532.00 |
| AOW age | |||
|---|---|---|---|
| Bracket from | Bracket to | Rate | Tax credit |
| 0.00 | €11 490.00 | 4.346% | €501.00 |
| €11 490.00 | €24 820.00 | 16.214% | €2 161.00 |
| €24 820.00 | €39 957.00 | 1.275% | €192.00 |
| €39 957.00 | €124 934.00 | -3.358% | -€2 854.00 |
The government adjusts the amount of the minimum wage twice a year – on 1 January and 1 July. As of 2024, there will no longer be a monthly, weekly or daily minimum wage. The proposed January 2024 changes are as follows:
| Age | Hourly minimum wage |
|---|---|
| 21 year and older | €13.27 |
| 20 year | €10.62 |
| 19 year | €7.96 |
| 18 year | €6.64 |
| 17 year | €5.24 |
| 16 year | €4.58 |
| 15 year | €3.98 |
The maximum annual salary basis cap for employer contributions may be amended to €71 628.00.
The Social security rates may be amended as shown in the table affixed below:
| Social Security | 2023 | 2024 |
|---|---|---|
| General unemployment insurance (AWF) High | 7.64% | 7.64% |
| General unemployment insurance (AWF) Low | 2.64% | 2.64% |
| Occupational disability insurance (Aof) High | 7.11% | 7.54% |
| Occupational disability insurance (Aof) Low | 5.82% | 6.18% |
| Childcare allowance contribution | 0.50% | 0.50% |
| Government unemployment insurance (Ufo - paid by government employers in place of AWF) | 0.68% | 0.68% |
| Healthcare Insurance - General | 6.68% | 6.57% |
| Healthcare Insurance - Pensioners, self-employed individuals, and entrepreneurs | 5.43% | 5.32% |
| Work Cost Ruling Scheme(WKR) – Up to EUR 400 000 | 3.00% | 1.92% |
| Work Cost Ruling Scheme(WKR) – Above EUR 400 000 | 1.18% | 1.18% |
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
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2024 Dutch Budget: Key Tax and Wage Changes in the Netherlands869.65 KB