Here are some other corporate tax changes and tips for you.
Do you expect to pay tax for the tax year 2024? If you request a provisional assessment in good time, this will save you legal interest. The tax rate for income tax entrepreneurs is currently 7.5% and for Corporate Tax the rate is 10%.
Did you find out that you forgot to include some items in your VAT return? Then consider to submit a supplement declaration. You can do this for this year or for the past 5 years. If it concerns VAT to be received or remitted of € 1,000 or less, this may be included in the next VAT return without a correction for the previous period.
Do you drive a company car and do you use this car privately? In that case, a correction must be made for private use in the last VAT return (to be submitted in January 2025). This may be based on actual use or on the basis of a fixed rate. Do you have questions about this? We are happy to help you.
If, as a business owner, you have made sufficient investments to qualify for the small-scale investment deduction, but have not yet paid all investments, we advise you to make these payments before the end of the year so that you are eligible for the small-scale investment deduction. You are eligible for the small-scale investment deduction when the total investment is higher than € 2.600.–.
Has your partner worked in your business this year but has not received compensation yet? Then consider paying compensation before the end of the year. This is deductible in your business. For your partner, this reimbursement is taxable in box 1. The rate depends on your partner’s total Box 1 income and is especially advantageous if your partner has a low income.
From 1 January 2025, the BPM exemption for company vans will be abolished. However, the BPM exemption will continue to apply to emission-free vans.
Do you expect your annual turnover to remain below € 20.000 in the coming years? And do you wish to participate in the small business VAT exemption arrangement (KOR)? Then make sure you have registered this with the Tax Office before December 3rd next. Entrepreneurs who apply for the KOR are exempt from VAT and have fewer administrative obligations. For instance, they usually don not have to file a VAT return. However, the KOR can also be disadvantageous, as for instance, entrepreneurs with the KOR cannot deduct VAT on expenses.
If you have turnover taxable in another EU country for VAT, you may be able to qualify for a similar VAT exemption arrangement in. The regulations change as per 1-1-2025 in order to unify the schemes in various countries. An important condition is that the EU-wide annual turnover must remain below the €100.000 limit. For more information about the regulations, please contact our office.
We would like to make you aware of the possibility under the Dutch Wages Tax Act to make a payment on a tax free basis for certain reimbursements which normally would be regarded as taxable income. This year this tax free scheme (‘vrije ruimte’) is maximised at 1,92% of the total company wages up to € 400.000,– and 1,18% beyond that. If you have not paid any other reimbursements or benefit of any kind to employees including directors which could be regarded as taxable wage, you could still make use of this scheme by paying out a tax free bonus as long as this is usual. A maximum amount of € 2.400 would be regarded as usual. For 2025 the percentage is increased to 2% of the company wage to € 400.000.
The tax-free travel allowance of € 0,23 remains the same in 2025. Because many people have been working from home since the corona crisis (and this indirectly costs the employee money; more energy consumption, coffee consumption, etc.), the cabinet has decided to introduce a tax-free working from home allowance. As a result, employers can reimburse a maximum of € 2,36 per day in or part of a day worked in 2024 (€ 2,40 in 2025). The allowances cannot be paid at the same time; per day you can either opt for payment of the work from home allowance, or payment of the travel allowance.
An employer can provide a tax-free allowance for setting up a home workplace. The employer can reimburse the costs for, for example, an office chair or computer screen via other specific exemptions from the work-related costs scheme.
It was the intention of this cabinet to halve the benefit of the charitable donations deduction. The 2025 Tax Plan therefore scrapped the gift deduction in corporate income tax. However, as a result of an adopted amendment, the gift tax deduction remains in place for gifts under € 100.000 and up to a maximum of 50% of the profit. Since personal tax deductions are limited to the lowest bracket, it may be more favourable to make donations from the BV. Moreover, there is no threshold for deduction BV as opposed to personal giving. Let us know if you have any questions on this subject.
The self-employed deduction has been phasing out since 2020. From 2023, this is happening in an accelerated fashion. The plan is to gradually reduce the self-employed deduction by € 1.280 a year, to € 900 in 2027. In 2024, the maximum self-employed deduction was € 3.750, in 2025 this will be € 2.470. In 2025 the SME profit exemption will be reduced from 13,31% to 12,7%.
The possibility to borrow from one’s own BV has been restricted as of 2023, with the taking effect of the Excessive Borrowing from Own Company Act(wet excessief lenen). If a shareholder borrows more than € 500.000 from his or her own BV, the excess will be taxed in box 2 (once). Last year the amount was €700.000, but as per reference date of 31 December 2024 this has been reduced to € 500.000. First home equity debts do not count towards the € 500.000 limit if they are covered by a notarial mortgage deed (a mortgage deed is not required for home equity debts existing as of 31 December 2022). In the case of high loans or overdrafts, it is important to anticipate this and consider repayments before the end of the year, or reserve money for the tax settlement. Specific rules also apply in partner situations. Is your debt to the BV higher than € 500.000? Contact our office to discuss the possibilities and consequences.
In 2024 a two bracket tax rate was introduced in box 2. This concerns income from substantial interest, such as dividends and capital gains on shareholdings above 5%. The rate in 2025 will be 24,5% for the first € 67.000 and 31% for the amount above that. Since this applies per partner, a total of € 134.000 can be taxed at the low rate in case of fiscal partnership.
Here are some other tax tips and changes for you this year.
General
Do you expect to pay tax for the 2024 or 2025 tax year? Requesting a provisional assessment in good time, will save you legal interest. Interest is calculated if the assessment is imposed later than 6 months after the end of the calendar year (1 July 2025). The interest is 7.5% currently. To ensure that the assessment is imposed in time, we recommend that you apply for it before 1 April 2025. The assessment for the 2024 tax year must be paid at once. There is the possibility of paying the assessment for the tax year 2025 in instalments during the year. Do you have questions about this? We are happy to assist you in applying for a provisional assessment.
If you expect to receive a refund for 2019, an Income Tax return for this year must be submitted before December 31, 2024. In 2024, the 5-year term for submitting this declaration will expire.
Deductions
If possible, bundle deductible expenses such as medical expenses and donations in one specific year. For example, a deduction is achieved earlier and the threshold is only deducted once from the expenses. For donations, the threshold disappears completely if you commit to donating to a charitable institution for 5 years, which has to be agreed on in writing.
In 2024, deductible items may be taken at a maximum of the low rate of 36,97% even if your income falls in the highest bracket.
Box 3
As mentioned in the introduction, if you were planning on converting (low-yielding) assets (e.g. shares, crypto, real estate) to bank accounts, this could save a substantial amount of box 3 tax for 2025 if this is done before the end of the year. All other assets apart from bank accounts are taxed at the highest rate, while bank accounts are taxed at a lower rate.
Receivables and loaned amounts are also taxed at the highest rate, therefore it would save box 3 tax for 2025 if the amounts are received or paid back into your bank account before the end of the year. This is only applicable if, in due course, you choose for taxation on fictitious box 3 income.The green investment exemption in box 3 will be scaled back from 1 January 2025. From 1 January 2025, the green investments exemption will be reduced to € 30.000, for 2024 the exemption was € 71.251.
Home owners
If you received a one-off gift under the exemption of up to € 100.000 for a house in 2022 and you have not yet fully used this amount, you should spend it on your house in 2024; if not, gift tax will be due on the unused portion.
House buyers between the age of 18 and 35 can benefit from a one-off transfer tax/stamp duty exemption if they meet certain requirements. The limit of this starter exemption (house value limit) will be raised from € 510.000 to € 525.000 in 2025, meaning that by waiting with the house purchase until 2025, you could potentially save thousands of euros in transfer tax.
The general transfer tax/stamp duty rate will remain at 10.4% in 2025 as in 2024. However, with effect from 1 January 2026, this rate will be reduced to 8%. This rate is valid for all properties except those to which the reduced rate of 2% or the starter exemption applies.
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