Special Budget Day 2024 / Tax Plan 2025

The first Schoof cabinet voted on Tuesday, September 17, 2024 Budget Memorandum 2025, the Tax Plan 2025 and various other bills presented. The previous Friday, September 13, 2024, the cabinet Schoof presented her Coalition Agreement. This newsletter contains a number of important points for employers from the Budget Memorandum, the Tax Plan and the Government Agreement.

New wage and income tax rate and reduction of general tax credit

A new rate will be introduced in wage and income tax as of 2025. The current first rate is split into a rate of 35.82% for taxable income up to €38,441 and a rate of 37.48% for the next €38,376 of taxable income. From €76,817 taxable income the rate is 49.5% (as this year) rates in the first bracket and partly also in the second bracket include the national insurance premiums (27.65%). The general tax credit is reduced by €335 per year. 30% scheme for expats

The austerity/phasing out of the 30% scheme introduced in 2024 will largely be reversed. The percentage of the tax-free compensation remains the same during the term of the 30% scheme and will become 27% from 2027. For the years 2025 and 2026 the percentage is 30% for every employee who is entitled to the 30% scheme. The salary standards for the application of the 30% scheme will be increased. In 2025 to €50,436 taxable income (was €46,107) or €38,338 taxable income (was € 35,048) for incoming employees under 30 years of age with a qualifying master's degree. This means that the total gross salary of a incoming employee in 2025 at least more than €72,000 per year (normal standard) or almost €53,000 (reduced standard) in 2025. New transitional law will apply again. For incoming employees who 2024 the 30% scheme will continue until the end of the term of their regulation the percentage of 30% tax-free compensation will apply. They will also continue to receive the old (indexed) salary standards apply. The previously introduced maximum basis for the 30% reimbursement (the WNT standard) and the abolition of the partial foreign tax liability

not reversed and therefore remain applicable. Final levy for continuous alternating use of a company van

If a company van is used by multiple employees and no conclusive mileage administration is kept per employee, the employer instead of an additional payment per employee choose to so-called final levy per van to be paid on an annual basis. The final levy is currently €300 and will be indexed to €438 per van by 2025. From In 2006 this amount was no longer indexed, so this will be the case for now and the future restored.

The definition of what is and what is not a van is being simplified. Public transport cards for employees

As of 2024, the targeted exemption for public transport cards, public transport subscriptions and advantage hours cards have been expanded. As a result, the public transport card, etc., which is not only for business travel is used but also for private travel, specifically exempted; there is so there is no taxable benefit in the event of private use. The information on this any ambiguities that still exist in the text of the law are now being removed by speak of “a granted right to a discount”. In addition, the distinction between travelling with Dutch public transport and other public transport. Distinction between employees and self-employed persons

A (new) bill is being introduced to make the distinction between employees and to make it clearer for the self-employed. In doing so, a legal presumption of employment relationship. The government is also working (further) on a compulsory disability insurance for self-employed persons. As already known, the government will lift the enforcement moratorium on 1 January 2025 false self-employment of the Tax Authorities. From January 2025, the

Tax authorities will therefore actively enforce bogus self-employment. Simplification of transition payment compensation

Employers can receive compensation for the transition payment they pay to an employee who leaves after 2 years of illness. The compensation is depending on the amount of the transition payment paid. From July 2026 only small employers (with less than 25 employees) are still eligible for this compensation eligible. Bill on security of flex and bandwidth contract

A new bill will provide more certainty to flexible workers by replacing zero-hour contracts with a “bandwidth contract” with more schedule and income security for flexible workers. Furthermore, the most uncertain phases of temporary work are shortened and the plan is to introduce “revolving door constructions” for temporary contracts to prevent. The previous government's plans to non-competition clause to be modernized. Simplification of types of leave

The leave system must be simplified, including by shortening and long-term care leave to be merged into “informal care leave”. The SER is requesting advice asked for a future-proof combination of work and care. Also the right to flexible working should be better known. Low unemployment rate for overtime

If employees with a permanent contract work an average of more than 30 hours per week

From January 2025, the employer will be entitled to a lower overtime wage for overtime work unemployment benefit rate due. Simplification of unemployment benefit

The WW will be adjusted. Various variants will be developed for this purpose, including a reduction of the unemployment benefit period to 8 months, together with, among other things, the UWV and the social partners. LKV target group job agreement

The LKV target group job agreement will be simplified as of 2026. There would then be no target group statement are more necessary. Crisis and employees

The bill on Staff Retention in Crisis is being continued. The aim is to in the event of a crisis outside the normal business risk, employers can temporarily redeploy employees within the company or temporarily to work less (with a wage subsidy). Employment agencies

The draft law on the Admission of the Provision of Labour, currently being processed by the House of Representatives, will form the basis for the tackling fraudulent employment agencies. Labor migration

There needs to be more control over labor migration. To achieve this, among other things, the knowledge migrant scheme tightened, a framework for consideration will be introduced

establishment of new companies in relation to migrant workers and space, are employers responsible for costs and inconvenience of migrant workers who do not have regular housing and for learning Dutch by migrant workers who reside in the Netherlands for a long period of time. Tightening of the knowledge migrant scheme is being further investigated, for example through higher salary standards and/or stricter requirements for recognized referees. Labor participation of newcomers and status holders

The labor participation of newcomers and status holders must be increased. To achieve this, employers who employ newcomers and status holders be relieved of as much worry as possible.