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HANRE DREYER

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1. Dutch tax changes confirmed in coalition agreement

14 Oct 2017, 18:28 Publicly Viewable

With numerous tax changes confirmed in the agreement the following stood out:

Personal income tax, the documents confirm that the income tax structure will be reduced from four brackets to two, of 37% on income up to €68 000 and 49.5% on income exceeding this threshold. At present, personal income is taxed at progressive rates up to 52%, which applies to income exceeding €67 072.

To offset the cost of these tax cuts, it is proposed that the lower rate of value-added tax will be increased from 6% to 9%.

In other tax measures, the coalition has agreed to higher environmental taxes, with a carbon price to be introduced in the electricity sector, and the possible introduction of noise and pollution taxes on the aviation sector, including a flight ticket tax.

Source: https://www.tax-news.com/news/Dutch_Tax_Changes_Confirmed_In_Coalition_Agreement____75466.html