Tax Plan 2027: What Will Change for Entrepreneurs and Employers?
On Budget Day, the Dutch government presented the Tax Plan 2027. Below is an overview of the most important preliminary measures for entrepreneurs and employers.
Transport and Mobility
Higher Tax-Free Travel Allowance
The tax-free travel allowance will increase from €0.23 to €0.25 per kilometre. This increase applies retroactively from 1 January 2026. As a result, employers can provide employees with a higher tax-free reimbursement for both business travel and commuting.
Temporary Reduction of Motor Vehicle Tax
The government intends to provide temporary relief to entrepreneurs through reductions in motor vehicle tax (MRB):
- For commercial vans used by entrepreneurs, the MRB rate will be reduced by 50% for a six-month period starting on 1 July 2026.
- For trucks, the MRB rate will be reduced to zero during the same period.
Both measures will remain in effect until 31 December 2026.
Pseudo Final Levy for Fossil-Fuel Vehicles
To prevent double taxation, an anti-cumulation provision is being proposed. This would ensure that employers cannot be taxed simultaneously through both the new pseudo final levy on fossil-fuel vehicles and the existing pseudo final levy on high severance payments based on the same taxable amount.
Climate and Innovation
Additional Tax Incentives for Sustainable Investments
As of 1 January 2027, the government will increase the deduction percentage of the Energy Investment Allowance (EIA) from 40% to 45.5%. This will make investments in energy-efficient business assets more attractive.
The Innovation Box threshold for SMEs will also increase from €25,000 to €100,000 in 2027.
Taxes
The tax scheme for employee stock options in startups and scale-ups will be adjusted. Payroll taxes will only be calculated on 65% of the gain from stock options instead of 100%. Taxation will take place no later than the moment the shares are actually sold. The government aims to make it easier for innovative companies to attract and retain talent.
Reduction of the Self-Employed Deduction
The self-employed deduction will decrease from €1,200 to €900 in 2027.
Phasing Out the Startup Deduction
The startup deduction allowed new entrepreneurs, subject to certain conditions, to claim an additional deduction of €2,123 per year for up to three years. This deduction will be phased out as follows:
- From 1 January 2027, the deduction amount will be reduced.
- From 1 January 2028, the scheme will be abolished entirely.
Arbitrary Depreciation Scheme for Starting Entrepreneurs
The Arbitrary Depreciation Scheme for Starting Entrepreneurs (WASO) allows starters to depreciate qualifying business assets more quickly. This scheme will be abolished as of 1 January 2028.
30% Ruling
From 1 January 2027, the maximum tax-free reimbursement percentage under the expat tax ruling will be reduced from 30% to 27%.
Other Proposals
Introduction of the Freedom Contribution
From 2027 onwards, businesses will be required to pay a so-called Freedom Contribution. The proceeds will be used, among other things, to help finance the significant increase in defence spending. The contribution will be implemented through an increase in the Disability Fund premium (Aof premium).
The Work-Related Costs Scheme (WKR)
The discretionary scope of the Work-Related Costs Scheme (WKR) will increase to 2.16% of the fiscal wage bill up to €400,000 from 1 January 2027.
In addition, the government proposes abolishing the specific exemption for industry-specific products within the WKR. Employers will still be able to offer discounts on their own products or services to employees, but these discounts must be included within the discretionary scope of the WKR. An advantage of this change is that employers will no longer need to track the amount of employee discounts granted on an individual basis.
Further information
The Dutch House of Representatives will discuss the tax proposals during the General Political Debates. Since these are still preliminary proposals, the measures may be amended before they are enacted.
Sources: Salaris Vanmorgen
