Prinsjesdag 2024 brings several important changes for entrepreneurs. Currently, the proposals are being discussed in the House of Representatives. Once the proposals are approved by both the House of Representatives and the Senate, they will be implemented. We have summarized and elaborated on the most relevant measures for you.
1. Adjustments in income tax
The cabinet plans to change the rates and brackets for income tax as of January 1, 2025. Additionally, the general tax credit (AHK) will be reduced by €335. This means that especially people with middle incomes will have a bit more to spend. However, the reduction of the AHK also means that people with a lower income will pay slightly more tax and premiums on their income. To help those with low incomes, the cabinet intends to implement other measures. For example, housing allowance will be increased, and more child-related budget will become available.
What are the proposed changes?
1st bracket: Rate decreases to 35.82%.
2nd bracket: Rate slightly increases to 37.48%.
3rd bracket: Rate remains the same at 49.50%.
2. Reduction of the MKB profit exemption
The MKB profit exemption decreases from 13,31% to 12,7%. This means that a smaller portion of your profit is exempt from tax. For entrepreneurs, this results in a direct increase in the taxable portion of their profit, leading to a slight increase in tax burden. This is an important point to consider in profit expectations for the coming years.
3. VAT changes
Several adjustments have been made to VAT regulations. Entrepreneurs working in the cultural sector, art, books, and sports will move from the reduced VAT rate (9%) to the general rate of 21%. The proposal is that the VAT change will take effect on January 1, 2026. It may be helpful to review these changes with your bookkeeper to avoid any mistakes in your tax return and to take advantage of potential new regulations.
4. False self-employment and flexible workers
To combat false self-employment, the law DBA (deregulering beoordeling arbeidsrelatie) will be enforced more strictly. It is expected that there will be stricter checks on freelancers who work for the same client for an extended period. Additionally, mandatory disability insurance for self-employed individuals will be introduced. This may lead to extra costs for freelancers, but it also provides more security in case of illness or disability.
5. Further reduction in self-employed tax deduction
The self-employed tax deduction will be reduced again. In 2025, it will be set at €2,470 per year, whereas it was still €3,750 in 2024. This means you will have slightly less tax benefit and will likely end up paying more taxes. The government aims to reduce the differences between self-employed individuals and employees with this change. Keep this in mind when making your financial planning.
The measures from Prinsjesdag 2024 present both challenges and opportunities for entrepreneurs. It is important to respond to these changes in a timely manner so that you can take advantage of the benefits and mitigate any risks. Do you have any questions about this? You can always ask your bookkeeper!
