{"id":1208,"date":"2025-02-05T22:07:24","date_gmt":"2025-02-05T21:07:24","guid":{"rendered":"https:\/\/wisniowsky.nl\/the-6-most-important-changes-to-tax-laws-in-the-netherlands-in-2025\/"},"modified":"2025-02-05T22:07:24","modified_gmt":"2025-02-05T21:07:24","slug":"the-6-most-important-changes-to-tax-laws-in-the-netherlands-in-2025","status":"publish","type":"post","link":"https:\/\/wisniowsky.nl\/en\/the-6-most-important-changes-to-tax-laws-in-the-netherlands-in-2025\/","title":{"rendered":"The 6 most important changes to tax laws in the Netherlands in 2025"},"content":{"rendered":"<br \/>\n<h3>New tax rates &#8211; change in thresholds and reliefs \ud83d\udcca\ud83d\udcb8<\/h3>\n<p>A new system of tax thresholds for individuals will be introduced starting in 2025. The existing two thresholds will be replaced by three:\n  <\/p>\n<ul>\n<li>35.82% &#8211; for income up to \u20ac38,441<\/li>\n<li>37.48% &#8211; for incomes between \u20ac38,441 and \u20ac76,817<\/li>\n<li>49.50% &#8211; for income above \u20ac76,817<\/li>\n<\/ul>\n<p>This means that those earning below the first threshold will pay slightly less tax than they do now, while for those with incomes in the middle range the difference will be minimal. For the highest income group, the changes are the least favorable, as the 49.50% threshold remains unchanged.   <br \/>\nIn addition, changes have been made to tax credits:<\/p>\n<ul>\n<li>The employee tax credit (arbeidskorting) increases to \u20ac5,599, which means a greater tax benefit for those who are employed.<\/li>\n<li>The general tax credit (algemene heffingskorting, AHK) is being reduced to \u20ac3,027, which could negatively affect the tax returns of low-income earners.<\/li>\n<\/ul>\n<hr>\n<h3>2. reduction in MKB relief &#8211; fewer benefits for businesses \ud83d\udcc9\ud83c\udfe2<\/h3>\n<p>Sole proprietors (SPEs) and small and medium-sized businesses (SMEs) must prepare for smaller tax breaks. The MKB-winstvrijstelling, or relief for the SME sector, will be reduced from 13.31% to 12.70%.\n<\/p>\n<p>This means that entrepreneurs will be able to deduct a smaller portion of their income from tax, which will increase their tax liability. The government justifies the change with the aim of making the tax system fairer and reducing the tax advantage of the self-employed over the employed. <\/p>\n<hr>\n<h3>3. elimination of low-income relief (LIV) \u2696\ufe0f\u274c<\/h3>\n<p>The LIV relief (lage-inkomensvoordeel) was financial support for employers who hired low-income people. The program was designed to make it easier to hire people in the lowest jobs and reduce labor costs. <\/p>\n<p>As of 2025, LIV will be completely eliminated, meaning that employers will no longer be compensated for hiring lower-income workers. This could affect the hiring decisions of many companies and result in fewer job opportunities for low-skilled workers. <\/p>\n<hr>\n<h3>4 Bank account \ud83d\udcb3<\/h3>\n<p>Although there is no formal requirement to have a company bank account, it is highly recommended. Separating personal and corporate finances makes it easier to manage finances and is beneficial from a tax perspective. \ud83d\udcb0<\/p>\n<hr>\n<h3>4. reduction in LKV relief for older workers \ud83d\udc75\ud83d\udc74<\/h3>\n<p>LKV relief (loonkostenvoordeel) is a form of support for employers who hire people from hard-to-hire groups, such as older workers (55+). Significant changes are being made starting in 2025:\n  <\/p>\n<ul>\n<li>The amount of relief is reduced to \u20ac1.35 per hour of work (a maximum of \u20ac2,600 per year per employee).<\/li>\n<li>As of 2026, the LKV relief for new employees over 55 will be phased out completely.\n    <\/li>\n<\/ul>\n<p>This could make older workers less attractive to employers, which could make it harder for them to find work.<\/p>\n<hr>\n<h3>5. increase in VAT to 21% for selected industries \ud83c\udfa8\ud83d\udcda\ud83c\udfcb\ufe0f<\/h3>\n<p>\n  The government has decided to raise VAT from 9% to 21% for several sectors that previously enjoyed a reduced rate. The increase affects, among others:<\/p>\n<p>   <span>\u2705 Culture &#8211; including some art events and museums<\/span><br \/>\n <span>\u2705 Books &#8211; both printed and digital<br \/>\n<\/span><br \/>\n<span>\u2705 Sports &#8211; including passes to gyms and sports classes<\/span><br \/>\n<span>\u2705 Hospitality services &#8211; accommodation in hotels, guesthouses and short-term rentals<\/span><\/p>\n<p>  However, there is no change in VAT for:\n<\/p>\n<ul>\n<li>Cinemas, amusement parks and theaters, where a reduced rate of 9% still applies.<\/li>\n<\/ul>\n<p>For companies in the cultural and sports industry, this may mean having to raise prices, which will affect customer interest.<\/p>\n<hr>\n<h3>6 Road tax changes &#8211; higher fees for electric cars \ud83d\ude97\u26a1<\/h3>\n<p>For years, the government has supported the purchase of electric cars by offering tax credits and lower road tax (MRB). In 2025, these privileges will begin to disappear:\n<\/p>\n<ul>\n<li>Electric passenger cars &#8211; in 2025 the road tax will be 25% of the normal rate (previously it was 0%).<\/li>\n<li>Electric vans and plug-in hybrids &#8211; will lose preferential rates and be subject to standard road tax starting in 2025.<\/li>\n<\/ul>\n<p>For businesses using electric vans, this means an increase in fleet maintenance costs.<\/p>\n<hr>\n<h4 style=\"font-size: 2rem; margin-bottom: 1rem; margin-top:2rem; text-align: center;\">Prinsjesdag \ud83d\udc51\ud83d\udcc5<\/h4>\n<h4 style=\"font-size: 2rem; margin-bottom: 2rem; text-align: center;\">All changes are announced during Prinsjesdag. Details can be found at <a href=\"https:\/\/rijksoverheid.nl\" target=\"_blank\">rijksoverheid.nl<\/a> <\/h4>\n","protected":false},"excerpt":{"rendered":"<p>New tax rates &#8211; change in thresholds and reliefs \ud83d\udcca\ud83d\udcb8 A new system of tax thresholds for individuals will be introduced starting in 2025. The existing two thresholds will be replaced by three: 35.82% &#8211; for income up to \u20ac38,441 37.48% &#8211; for incomes between \u20ac38,441 and \u20ac76,817 49.50% &#8211; for income above \u20ac76,817 This [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-1208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-knowledge"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Top 6 tax changes in the Netherlands in 2025<\/title>\n<meta name=\"description\" content=\"Find out what has changed in the regulations in 2025. Changes in tax thresholds. 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