NETHERLANDS Trends and Developments Contributed by: Frans Sonneveldt, Mike Vrijmoed and Bianca de Kroon, Forvis Mazars NV
Whether such proposals become law or not, the debate itself already influences behaviour. Families are accelerating gifting programmes, revisiting exist - ing structures and, in some cases, considering reloca - tion. The underlying shift runs through all the trends in this article: resilience is becoming more important than optimisation. Personal Income Tax: A System in Motion The Dutch income tax system is divided into three “boxes”, each with its own tax rules and rates. Recently, we have seen significant changes, particu - larly aimed at preventing improper use, according to the legislator and improving the fairness of the system. Box 1: income from work and home ownership Box 1 includes income from employment and home ownership. The tax rates in this box are progressive, with a maximum rate of 49.5% in 2026. Although no major changes have been announced for Box 1, it remains a focus for policymakers striving for a bal - anced tax system. Will we see shifts in the future in the balance between labour and capital? Box 2: substantial shareholdings Box 2 concerns income from substantial sharehold - ings (at least 5%), which in practice often amounts to dividends and capital gains. Here we have seen significant recent changes. The rates were raised in recent years from a fixed rate of 25% to a two-bracket system. In 2026, box 2 contains the following brack - ets: • 24.5% on the first EUR68,843 (EUR137,686 for fis - cal partners); and • 31% on the excess. The measure that taxes debts to one’s own com - pany above a certain threshold as deemed divi - dends remains applicable (Excessive Borrowing Act). For 2026, this applies above a total loan amount of EUR500,000. In recent years, there have been significant develop - ments in legislation around donations from compa - nies to Public Benefit Organisations (in Dutch: ANBIs). Company donations are deductible for corporate income tax purposes up to EUR100,000 per year (not
exceeding 50% of profit). Only in 2024 were com - pany donations exempt from income tax in Box 2 and from dividend withholding tax. In other words, when a company makes a significant donation from 2025 onwards, it will be deemed a dividend to its share- holders. For individuals, it is still possible to receive tax ben - efits by structuring the donation as a periodic gift (at least five annual gifts). Box 3: the fiscal Rubik’s cube for savings and investments Box 3, which taxes income from savings and invest - ments, has undergone the most turbulent period. In 2021, the Supreme Court ruled that the then Box 3 system was incompatible with European law. Since 1 January 2023, transitional legislation has been in effect and when you think you have solved it, you are forced to think again. The current system works as follows: there is an exemption of EUR59,357 per person (2026). Sepa - rate notional returns are used for different asset cat - egories: • savings: 1.28%; • investments and other assets: 6.00%; and • debts: -2.70% (deductible). The calculated notional return is taxed at 36% (2026). In June 2024, the Supreme Court again ruled that the current system violates the prohibition of discrimina - tion and the property right. As a result, taxpayers must be allowed to demonstrate that their actual return is lower than the notional return and in that case, pay tax on the lower actual return. Following that case law, in 2025, the temporary counter-evidence law for Box 3 took force. This law allows for the demonstration of the actual total return. The current Box 3 regime remains transitional and further changes are expected in 2028, once a system more closely aligned with actual returns is introduced. The uncertainty surrounding Box 3 has reinforced a broader trend. Increasingly, clients are prioritising flex - ibility over optimisation. Structures that can adapt to
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