Dutch Tax Update 2025: Key takeaways from the CDCC webinar

On 3 April 2025, the Czech-Slovak Dutch Chamber of Commerce (CDCC) hosted its annual Dutch Tax Update webinar, offering members and guests a clear overview of the latest tax developments in the Netherlands. Led by seasoned experts from Taxperience, the online seminar focused on personal income taxation, the 30% ruling, and key international tax developments. The event was tailored especially for internationally active businesses and professionals wanting to stay up to date with relevant fiscal changes.

Personal Income Tax: The three-box system explained

The session kicked off with an overview of how personal income tax is structured in the Netherlands. Income is categorized into three so-called “Boxes,” each taxed separately:

• Box 1 – income from work and home
  This includes salary, business income, and income from an owner-occupied home. It is taxed progressively, with rates reaching up to 49.5%.
• Box 2 – income from substantial interest
  This concerns income from a substantial shareholding (5% or more) in a company. The income from dividends and capital gains is taxed at a rate of 24.5% for the first €67,804 of taxable income and at 31% for the income above that amount.
• Box 3 – income from savings and investments
  This box covers assets like bank savings, shares, and second homes. The current system calculates a deemed income based on the value of assets as of 1 January each year. The type of asset (e.g., cash, real estate, shares) influences the assumed return. This deemed income is then taxed at 36%, with the first €57,684 exempt.

Plans are underway to reform Box 3 starting in 2028, moving toward a system based on actual income (rather than deemed income), with limited deductibility of costs. An alternative regime for real estate is also proposed. However, these changes are still under discussion and may be postponed or revised again.

The 30% ruling: An important incentive for international talent

Another important topic covered was the 30% ruling, a tax advantage for highly skilled international employees relocating to the Netherlands. It allows employers to pay up to 30% of an employee’s salary tax-free, compensating for the extra costs of living abroad.

In 2025, the salary thresholds to qualify for the ruling are:

• €46,660 for employees aged 30 or older
• €35,468 for employees under 30 with a qualifying master’s degree

Starting in 2027, the tax-free portion will be reduced from 30% to 27%, making it crucial for employers and employees to prepare for the change in advance.

International tax developments: What’s coming?

The final part of the webinar provided a concise overview of international tax updates, with a focus on EU and global initiatives:

• Pillar 2 Directive: In effect since 1 January 2024, this regulation ensures a minimum effective tax rate of 15% for multinational groups with consolidated revenues of €750 million or more. However, its implementation faces challenges, including legal objections in Belgium and political pushback in the United States.
• BEFIT (Business in Europe: Framework for Income Taxation): Still under proposal, BEFIT aims to harmonize corporate taxation for large groups operating within the EU.
• EU Transfer Pricing Directive: Also pending, this directive would standardize transfer pricing rules across EU Member States and codify the arm’s length principle, even for dealings within the same company.
• Head Office Taxation for SMEs: This proposal would simplify tax administration for SMEs with operations in multiple EU countries, allowing them to file taxes solely in the country where their head office is located. However, political support is currently limited.

A valuable update from the experts

The webinar offered participants clear, up-to-date insights on both domestic and international tax issues. From structural reforms in income tax to upcoming global rules, the session helped businesses and professionals understand the practical impact of the changes ahead.

The CDCC thanks the expert speakers from Taxperience:

• Bart van Gool, Senior Manager Human Capital
• Maarten van den Beucken, Tax Partner at Taxperience 
• Cas Coelen, Senior Associate Tax

For further information or personal advice, feel free to contact the team at Taxperience.