Topics 2025 Year-end tips

We have divided these Year-end tips for 2025 into the following topics:

1. All entrepreneurs
2. Entrepreneurs subject to income tax
3. Entrepreneurs with a private limited company
4. Private individuals

The proposed measures will take effect on 1 January 2026, unless otherwise stated.

1. ALL ENTREPRENEURS

1.1 Utilise remaining discretionary scope in the WKR

Make good use of the discretionary scope for the work-related expenses scheme (WKR). Do you still have unused scope? If so, you may be able to give your employees tax-free allowances or benefits in kind this year. You cannot carry over any unused portion of the discretionary scope to next year. You only need to include the settlement of the work-related expenses scheme for the year 2025 (final levy on work-related expenses of 80% of the allowances and benefits in kind exceeding the allowance designated as final levy) in your payroll tax return for February 2026. You must submit and pay this return in March 2026.

Tip!
In 2025, the discretionary scope on the first €400,000 of the wage bill will be 2%. Above that amount, a percentage of 1.18% will apply. In 2026, the percentage on the first €400,000 of the wage bill will remain at 2%. If you expect the discretionary scope to exceed the first €400,000 in 2026, it may be advantageous to bring forward part of next year’s allowances and benefits in kind.

If necessary, apply the group scheme. This effectively creates a joint allowance that can be exchanged between group companies.

Please note
If you make use of the group scheme, in 2025 you will only be able to make use of the discretionary scope once for the first
€400,000 of the wage bill.
Consult your adviser about which option is more advantageous: exchanging unused discretionary scope between companies or making multiple use of the discretionary scope on the first €400,000 of the wage bill.

Tip!
Record in writing and in good time (in advance!) that you have designated allowances and benefits in kind and what these are. This will prevent many discussions with the Tax and Customs Administration. Be aware that up to a total amount of €2,400 per employee per year, the Tax and Customs Administration assumes in principle that the customary practice test has been met.

1.2 Targeted exemption for working from home

An employer may (under certain conditions) give its employees a tax-free allowance per day worked from home. For 2025, this allowance is €2.40. For 2026, this allowance is likely to be €2.45. For employees who work from home on a structural basis, a practical arrangement applies, whereby a fixed allowance may be given under certain conditions.

Tip!
Would you like to make use of this specific exemption? Consult your adviser.

Please note
If an employee works both at home and at the office on the same day, you must choose *either* the travel allowance or the home‑working allowance—both cannot apply. If the employee uses a company car or bicycle, or has an OV‑card or public transport subscription for commuting, no home‑working allowance may be granted on that day. Fixed allowances do not need to be adjusted for incidental deviations.

1.3 Choose annually whether to apply the 30% Ruling

If you employ extraterritorial employees, you must choose each year whether to reimburse actual extraterritorial costs or apply the 30% ruling. This choice is made in the first payroll period of the year. If the 30% ruling is applied for within four months of the employee’s start date, the first payroll period after those four months becomes the decision period.

Please note
From 2027 the 30% ruling percentage will be reduced to a flat 27%. Expats already using the ruling in 2025 may continue applying the 30% rate. Partial non-resident taxpayer status ended on 1 January 2025. Transitional arrangements apply until 1 January 2027 for employees who had the 30% ruling before 2024. From 2026, certain actual extraterritorial costs—such as additional living expenses including utilities—will no longer be exempt. Other costs, such as double housing expenses, may still be reimbursed tax‑free.

1.4 Prepare for Additional Levy on Non‑Electric Company Cars

From 2027, a 12% pseudo‑final levy may apply to the list price (incl. VAT and BPM) of employer‑provided fossil‑fuel cars (including hybrids) available for private use, including commuting. For cars older than 25 years, the fair market value applies. The employer cannot recover this levy from employees. The measure does not apply to vans (except passenger vans for care transport).

Please note
A transitional rule exempts non‑electric cars made available to employees before 2027 from this levy until 17 September 2030.

Tip!
Consider the contract duration of new lease agreements for fossil-fuel cars and review your company’s car policy..

1.5 Consider Advancing the Purchase of an Electric Car to 2025

Met ingang van 2026 geldt er geen verlaagd tarief meer voor de bijtelling wegens privégebruik van elektrische auto’s die vanaf dat moment voor het eerst op kenteken worden gezet. Bij aanschaf of afsluiten van een leaseregeling van elektrische auto’s van de zaak in 2025 kan nog gedurende 60 maanden gebruikt worden gemaakt van de 17%-bijtelling over de cataloguswaarde tot € 30.000 en 22% over het meerdere. Wordt een dergelijke auto vanaf 2026 voor het eerst op kenteken gezet, dan geldt een bijtelling van 22% over de gehele cataloguswaarde.

Tip!
Bereken of afkoop van een huidige leaseregeling voor een elektrische auto van de zaak die (begin) 2026 afloopt gevolgd door afsluiten van een nieuw contract voor een (voorraad)auto die dit jaar nog op naam kan worden gezet voordeliger is dan het afsluiten van een nieuw contract na de jaarwisseling.

1.6 Use the Exemption for Company Bicycles Not Parked at Home

Employer‑provided bicycles used privately are subject to a 7% annual addition. Commuting counts as private use. To avoid undesired additions for shared or OV‑bikes, no addition applies if the bicycle is not stored at the employee’s home more than 10% of the time. Bicycles stored at stations to bridge the last commute kilometres fall under this exemption.

Please note
This rule applies retroactively to 1 January 2020. Past incorrect additions may be corrected.

1.7 Wage Cost Benefit (LKV)

Employers may receive wage cost benefits for hiring older or disabled workers. A target group declaration must be obtained within three months of the employee’s start date. LKV rules for reintegrating disabled employees have been expanded from 2025, whereas LKV for older workers is being phased out for employments starting from 2024.

• LKV older employee;
• LKV disabled employee;
• LKV target group job agreement and people with learning difficulties;
• LKV redeployment of disabled employee.

Your employee (or you, if your employee authorises you) must apply for the target group declaration from the UWV or the local authority within three months of the employee joining your company. After those three months, the employee is no longer entitled to that target group declaration and you can no longer apply for LKV for your employee.

The conditions for the LKV redeployment of a disabled employee will be relaxed as of 1 January 2025. The wage cost subsidy for older employees will be phased out for employment relationships that commenced on or after 1 January 2024. In 2026, this wage cost subsidy will only be available for employment relationships that commenced before 1 January 2024.

Tip!
Ensure you obtain a copy of the target group declaration from your employee in time.

1.8 No Increase in the Tax‑Free Commuting Allowance

Employers can give employees a tax-free allowance for the costs of travelling from home to a fixed place of work. In 2025, this tax-free allowance will be €0.23 per kilometre for both the outward and return journeys.

In 2026, this tax-free allowance will remain at £0.23 per kilometre. Employees who regularly commute between their home and a fixed place of work may receive a fixed allowance under certain conditions. If you would like to make use of this targeted exemption in combination with a home working allowance, please contact your adviser to discuss the options.

Please note
Travel and home‑working allowances cannot be combined on the same day (see 1.2).

1.9 Submit Your WBSO Application on Time

Employers can receive a tax allowance for innovation costs through the WBSO. This includes salary costs and other innovation costs. Apply for the WBSO online in advance at RVO (www.rvo.nl). If you have applied for WBSO for 2025 and have received an R&D declaration, you can report what you have achieved in 2025 from mid-February 2026 onwards. To avoid a penalty, you must submit this achievement report before 31 March 2026.

Please note
Applications for the first period of 2026 must be submitted by
20 December 2025.

1.10 Reporting Payments to Third Parties

Employers are obliged to provide information to the Tax and Customs Administration about amounts paid to third parties on which no payroll taxes have been withheld. If you make such payments to a natural person, you must inform the Tax and Customs Administration of a number of details, including: name, address, place of residence, date of birth, citizen service number (BSN) and the amounts paid in the calendar year, including expense allowances. The obligation to provide information does not apply to, among other things, payments to employees, artists, professional athletes or volunteers. Nor does the obligation to provide information apply to persons who have issued an invoice with VAT, provided that the invoice meets the requirements of the 1968 Turnover Tax Act. Even if the sales tax is reversed, you must provide an overview of the amounts paid. For 2025, you can submit the information during the course of the year itself, but no later than January 2026.

Tip!
Identify all persons for whom reporting is required and ensure you hold all necessary data (including BSN).

1.11 Pay less tax: take advantage of the small-scale investment allowance (KIA)

Are you planning to invest in your business? It may be advantageous to do so this year, or it may be better to postpone (part of) the investment until 2026. This will allow you to make optimal use of the small-scale investment deduction and pay less tax. To qualify for the KIA, you must invest at least £2,900.

If you invest more than £392,230 (2025), you are not entitled to the KIA. Investments up to £450 do not count. The KIA applies to both new and used business assets. You cannot obtain KIA for some business assets, such as land, residential properties and passenger cars.

Please note
If the business asset in which the investment was made is not yet in use in 2025, the KIA will be limited to the amount paid at the end of 2025. The excess amount will then be deductible in 2026. However, you can still make optimal use of the KIA in 2025 if you make a down payment equal to the amount of the KIA for that business asset.

Tip!
If you forgot to apply the investment deduction in your tax return, you can still submit a request to apply it within five years.

1.12 Take advantage of the energy and environmental investment deduction

In addition to the small-scale investment allowance (KIA), you may also be entitled to an energy investment allowance (EIA) if you invest in certain energy-efficient business assets, or an environmental investment allowance (MIA) if you make certain environmentally friendly investments. The EIA amounts to 40% of the investment. Depending on the business asset, the MIA amounts to 27%, 36% or 45%. Only investments in new business assets are eligible for the EIA or MIA. Small investments up to an amount of €2,500 are not eligible for EIA or MIA. You will only receive EIA or MIA if the investments are reported digitally via the e-loket at mijn.rvo.nl within three months of entering into the commitment. You can determine whether a business asset is eligible for EIA or MIA on the basis of the energy list or the environmental list (available at www.rvo.nl).

1.13 Avoid a divestment addition

Have you applied investment relief in the past five years? And are you selling the business asset again? Then you may be subject to the divestment surcharge. This is an additional charge on your company’s profits, which means you will have to repay part of the previous investment relief. The surcharge only applies if you dispose of more than €2,900 worth of business assets.

Tip!
Did you invest in a business asset with investment relief in 2021? If you are going to dispose of that business asset, you can avoid the divestment surcharge by postponing the sale until early 2026.

1.14 Avoid additional tax liability for staff delivery vans

Does your company have delivery vans that are made available to staff? If so, employees are generally required to pay tax on the additional tax liability for private use of the delivery van.

Does your employee drive less than 500 km privately with this delivery van on an annual basis? In that case, the employee can apply for a “Declaration of no private use of a car” for a delivery van, just as they would for a passenger car. For delivery vans, there are also special options for avoiding the additional tax liability if the employee cannot or is not allowed to drive the delivery van for private use. These include:

• a delivery van that cannot be used outside working hours (a “behind the fence” car);
• a ban on private use of the delivery van;
• a “Declaration of exclusive business use of delivery van”.

In that case, you must make private use impossible and monitor the use of the vehicle. For the ban on private use, you can use a sample agreement that you can download from www.belastingdienst.nl (sample agreement prohibiting private use of delivery vans, in Dutch).

Tip!
Are the delivery vans used continuously on a rotating basis and is it impossible to determine the private use per employee? In that case, a final levy of €438 per delivery van applies. From 2026, this final levy will be indexed. If commuting is not excluded, this will result in a full VAT correction for private use. For VAT purposes, commuting is considered private use, unless you work in different locations and need a car for this purpose.

Please note
If, due to its nature and design, the delivery van is (almost) exclusively suitable for the transport of goods, you do not need to take a fixed additional tax liability into account. Discuss your situation with your adviser.

1.15 Pay tax later: depreciate business assets at random

As an entrepreneur, you must depreciate business assets if they decrease in value through use. This depreciation is deductible from your profits. Sometimes you can make use of arbitrary depreciation. This means that you can depreciate more quickly. You then bring the costs forward and thus defer taxation. Arbitrary depreciation is available for environmental investments (VAMIL, up to 75% of the investment costs), but also for investments by start-up entrepreneurs. Start-up entrepreneurs will be able to depreciate their investments arbitrarily in 2025, if the maximum investment amount in 2025 is €392,230.

Tip!
If you intend to invest in new business assets in 2026, you may be able to bring these investments forward in order to benefit from the arbitrary depreciation in 2025

1.16 Write down receivables, business assets and stock

Your company’s assets are listed on the (tax) balance sheet at their purchase price, less depreciation. We call this the book value. If the actual value of the assets is lower than the book value, you may be able to write them down. The write-down is deducted from your business profits, which means you pay less tax this year.

1.17 Defer tax: form a HIR and substantiate your reinvestment intention

Has your company sold business assets this year at a price higher than their book value? If so, you will probably have to pay tax on this book profit. You can avoid this by reserving the book profit in a reinvestment reserve (HIR).

However, you must have the intention to make new investments in the same year or in the following three years.

As long as you do not proceed with the investment, you must demonstrate your reinvestment intention. This could involve recording the intended investments in a management decision, supplemented by records of the concrete steps you have taken to reinvest. For example, requesting quotations or conducting searches and the like.

Please note
Under special circumstances, the reinvestment period may be extended. For example, if the nature of the business asset requires a longer period or if the purchase has been delayed due to special circumstances. In that case, ask the Tax and Customs Administration for an extension of the period before the end of the three-year period. Your adviser can help you with this.

1.18 Reinvest on time

Have you formed a reinvestment reserve (HIR) in previous years? In principle, this will remain in place for a maximum of three years.

If you do not invest within that period, the HIR will be added back to your profits and you will still have to pay tax on it. A reinvestment reserve formed in 2022 must therefore be used for a new investment in business assets by 31 December 2025 at the latest. So make sure you invest in good time. Reinvestment can happen very quickly. All you need to do is sign the contract for the investment in 2025. The business asset does not have to be delivered to you or paid for by you in 2025.

1.19 Consider the possibility of creating a provision

Are you reasonably certain that you will have to make certain (large) expenditures in 2026? If so, you may be able to reduce your profit for 2025 by creating a provision.

Please note
You may only create a provision for future expenses if they are caused by facts and circumstances that occurred in 2025 or earlier years. The future expenses must also be attributable to these years.

1.20 Limit the deduction restriction for mixed costs

Mixed costs are costs that contain both a business and a private element. Did you incur mixed costs in 2025? If so, these are not deductible up to an amount of £5,700. However, you can also choose to deduct 80% of these costs. This is advantageous if the limited deductible costs for 2025 amount to less than £28,500.

Please note
Different rules apply to companies that are subject to corporation tax. Do you run your business as a private limited company? In that case, the amount of the limited deductible costs is equal to 0.4% of the taxable wages of employees, with a minimum of €5,700. If you opt for this in your tax return, wages from previous employment, such as those of retired employees, are not included in the wages. The private limited company can also choose to replace this amount with 73.5% of the actual costs, if this amount is lower.

1.21 VAT entrepreneur with low turnover: apply the small business scheme

Entrepreneurs in the Netherlands with a VAT turnover of up to €20,000 can opt for the VAT exemption for small businesses: the small business scheme (KOR). Participation in the KOR reduces the administrative obligations for VAT. The entrepreneur may then no longer charge VAT to his customers and may not deduct turnover tax as input tax. This scheme also applies to private limited companies and other legal entities, such as foundations and associations.

If you wish to make use of the KOR, you must apply for it four weeks before the start of the next tax return period, i.e. before 3 December 2025 for application from 2026 onwards.

When using the KOR, the sales tax on business expenses and investments is not deductible. This also applies to VAT you have paid in another EU country, such as VAT on refuelling in Germany. You may have to repay VAT previously deducted, based on the revision rules. Ask your tax advisor about the consequences of the KOR for your business.

The KOR also applies to other countries within the European Union. You will not be allowed to have more than €100,000 in turnover within the European Union, nor more than the threshold amounts in each Member State.

Tip!
If you no longer wish to apply the KOR with effect from 1 January 2026, you can deregister using a special form on the Tax and Customs Administration website. You must do this by 3 December 2025 at the latest. The consequence of this is that you will not be able to use the KOR for a maximum of two years with effect from 2026. Consult your advisor in advance to discuss the consequences.

1.22 Correct previous VAT returns

Have you noticed that you have paid too much or too little VAT? If so, you must correct this. You can process this correction in your next VAT return. However, the VAT correction must not exceed €1,000. If the correction is larger than this, you must submit a separate supplementary return.

Please note
To avoid penalties, a supplementary VAT return must be submitted before the entrepreneur knows or has reasonable grounds to suspect that the Tax and Customs Administration is aware of the inaccuracy in question. From 2025 onwards, a supplementary VAT return must in any case be submitted within eight weeks of the entrepreneur discovering that the VAT return submitted was incorrect.

1.23 One-stop shop system for distance sales

The new EU VAT e-commerce regulation has been in force since 1 July 2021. If you supply goods to customers in the EU who do not submit VAT returns, you can use the so-called one-stop shop system ( ). This saves you having to register in the countries where you supply the goods.

Tip!
Not yet using the one-stop shop system? Ask your adviser about the options.

1.24 VAT review for mixed services

If, as an entrepreneur, you use capital goods for both taxable and exempt services, you cannot reclaim the full VAT on those capital goods. The deduction is based on the pro rata ratio of the taxed and exempt services in the financial year in which they were put into use. If this pro rata ratio changes in subsequent years, you must assess annually whether the VAT reclaimed on the capital goods needs to be revised. For movable property, the review period is 4 years after the year of commissioning and for immovable property 9 years after the year of commissioning. The annual revision amounts to a maximum of 1/5th and 1/10th of the reclaimed VAT respectively. If the difference with the reclaimed amount for that year is less than 10%, no revision is required.

1.25 Anticipate the introduction of the VAT revision scheme for costly services

A VAT adjustment scheme already applies to investments in movable and immovable property. From 2026, a VAT adjustment scheme will also apply to services to one or more immovable properties that serve them for several years, including materials, installations, machinery and tools that, after installation or assembly, qualify as immovable. A threshold amount of €30,000 excluding VAT per investment service applies. The new adjustment scheme applies to investment services that are put into use on or after 1 January 2026. From 2026 onwards, these investment services will be monitored in the year of commissioning, plus the four subsequent years. Based on case law of the European Court of Justice, you can opt for a ten-year review period, but this means you are committed for longer. If the use for VAT-taxed and/or VAT-exempt services changes during that period, the VAT deduction on the investment service will be revised.

Tip!
The new revision scheme applies to investment services that are put into use on or after 1 January 2026. If possible, it is therefore worthwhile to put the investment service into use (or have it put into use) before 1 January 2026 and to record this moment of commissioning accurately in your records.

1.26 Note VAT in connection with private use and the Exclusion of Deduction Decree (BUA)

Do you or your staff use goods or services from your company for private use? Or do you use them to maintain a certain status, for business gifts or gifts to non-deductible persons, or for staff facilities? If so, you may be liable for VAT if you have favoured one or more staff members (or business relations) by more than €227 (excluding VAT) in a year. With effect from 1 January 2024, the amount of a personal contribution to be paid for staff benefits, business gifts or other gifts may no longer be deducted from the total expenditure that is assessed against the threshold amount of the BUA. Consult your adviser about the consequences.

1.27 Reclaim VAT from non-paying debtors

Are you certain that customers will no longer pay your invoices? If so, you can reclaim the VAT that you charged on those invoices and paid to the tax authorities. You can do this in any case if the invoice has not been paid one year after the due date. Have you not agreed on a payment term? Then a payment term of 30 days after receipt of the invoice by your customer applies. You can reclaim the VAT you do not receive in your normal VAT return.

1.28 Correct VAT for private use of a car in your final tax return for 2025

The VAT invoiced to you or your company in 2025 for the purchase, maintenance or use of a business car driven by you or your employee is deductible as input tax, provided that you or your company has taxable turnover. However, a correction must be indicated in the final return for the year if this car is also used for private purposes. You can base this correction on the ratio between private kilometres and business kilometres. If no mileage records have been kept, you can assume a correction of 2.7% of the list price (including VAT and BPM) or 1.5% for cars purchased without VAT (margin cars) or cars that have been in use for more than 5 years.

Please note
For sales tax purposes, commuting is considered private use unless you have to travel to different work locations by car.

1.29 Please note the application of the correct VAT rate

The previously announced increase in the VAT rate on culture, media and sport will not go ahead. However, from 2026, the high VAT rate will apply to the provision of accommodation, such as overnight stays in hotels, holiday homes, B&Bs and guesthouses. The provision of accommodation does not include the provision of camping facilities within the framework of camp and holiday accommodation to persons who are only staying there for a short period of time.

Please note
Transitional law already applies to advance payments made this year for overnight stays in 2026. The high VAT rate of 21% must already be charged on these advance payments.

1.30 Ensure liquidity: request for provisional loss relief

Do you expect your company to suffer a loss in 2025, even though you have paid a provisional assessment for 2025? If so, submit a request for a reduction in your provisional assessment for 2025. This will prevent you from paying too much tax in advance. You will then have more money available for your business activities.

Once the financial year has ended and your tax return has been submitted, you can also submit a request for a provisional loss deduction. The advantage of this is that you can already offset 80% of the loss against profits from previous years. This means you will receive your refund more quickly. So be sure to request a provisional loss deduction as soon as possible.

Please note
The provisional loss settlement will later be settled with the final loss settlement. The provisional loss settlement therefore leads to more liquidity, but not to a higher amount.

1.31 Retention periods: check your records

You are obliged to keep your records for at least 7 years. In some situations, the retention period is even longer. Consider, for example, data relating to immovable property, for which a review period of 10 years applies. The retention period for this is longer. So check carefully that you are storing your data correctly.

Has the retention period expired? Then you can destroy everything. Make sure that no privacy-sensitive information is disclosed.

1.32 Relaxation of special payment arrangements for (coronavirus) tax debts

Many entrepreneurs are busy repaying their corona tax debts. Are you having difficulty repaying these corona tax debts? If so, you can request the Tax and Customs Administration to relax the payment arrangement. Under certain conditions, you can request payment in quarterly instalments instead of monthly instalments, a payment break of up to six consecutive months or two consecutive quarters, an extension of the repayment period to seven years instead of five years, or a combination of these relaxations. Ask your adviser about the options and conditions.

Please note
Relaxing the payment arrangement has consequences for the collection interest payable. The collection interest will be 1% from 1 July 2022, 2% from 1 January 2023, 3% from 1 July 2023 and 4% from 1 January 2024.

1.33 Take advantage of the ISDE this year

If you intend to invest in a heat pump, solar boiler and/or small-scale wind turbines for your business in 2026, you may be able to bring these investments forward in order to benefit from the Sustainable Energy and Energy Saving Investment Subsidy (ISDE, in Dutch) this year. Incidentally, this scheme will also remain available in 2026. Consult your advisor for the possibilities.

Please note
For business users, the ISDE application process differs from that for private users. The most important difference is that you must first apply for the subsidy and only then enter into an agreement with a contractor.

1.34 Avoid penalties related to bogus self-employment

The enforcement moratorium will come to an end in 2025. This means that the Tax and Customs Administration will once again start enforcing the rules on bogus self-employment, even if there is no intent or bad faith involved. Bogus self-employment occurs when a self-employed person (zzp’er) is actually employed by a client according to the (legal) rules. The Tax and Customs Administration can impose corrective obligations, additional tax assessments and fines with retroactive effect to 1 January 2025 if it appears that a self-employed person does meet the criteria for an employment relationship. There will be a one-year transition period during which employers and employees will not be fined if they can prove that they are taking steps to combat bogus self-employment. This so-called ‘soft landing’ will not be continued next year. This means that from 2026 onwards, the Tax and Customs Administration will be able to impose fines if a contract for services is used incorrectly when in fact an employment relationship exists. This will also apply if there is no intent or bad faith.

Since 6 September 2024, the Tax and Customs Administration no longer assesses model agreements between clients and contractors. Approved agreements that were still valid on 6 September 2024 may still be used until 31 December 2029.

Please note
The Tax and Customs Administration’s motivation for discontinuing the use of model agreements is that experience has shown that, in practice, an employment relationship often does not correspond to the agreements in the model agreement. In general, partly for this reason, it is not the provisions of the agreement that are decisive, but how the work is carried out in practice. The manner in which the work is actually performed is decisive in determining whether the contractor is an employee or self-employed.

Tip!
Critically assess the employment relationship with all your self-employed persons. Consult your adviser.

1.35 Consider the Business Succession Scheme

At present, there are facilities in place for gifts and deaths of persons with a sole proprietorship or with shares in a private limited company in which a business is located. The income tax claim can be deferred and there is a conditional exemption for gift and inheritance tax. Do you already intend to donate the company in the foreseeable future? If so, take into account recent and upcoming changes to these tax regulations. With effect from 2026, the business succession regulations will be amended again. For example, the regulations on (cumulative) preference shares will be amended. Furthermore, with effect from 1 January 2025, a three-year continuation requirement will apply to gift and inheritance tax. The rules for business succession are complex and have undergone radical changes in recent years. Please consult your adviser for more information.

1.36 Prepare for the CBAM

With the Carbon Border Adjustment Mechanism (CBAM), the EU wants to tax non-EU producers on carbon emissions during the production of goods imported into the EU. CBAM is therefore EU legislation that taxes the nitrogen emissions of imported goods. The regulations are extremely complex, so if you are affected by this, it is advisable to consult a specialist

1.37 Consider VAT in the digital age (VIDA)

The sales tax landscape will undergo radical changes in the coming years. For example, real-time digital reporting for cross-border trade, based on e-invoicing, will be introduced. For the Netherlands, this part of the Bill is due to come into force on 1 July 2030. This is still a long way off for the Netherlands. Other Member States of the European Union are already much further ahead. In Belgium, for example, e-invoicing will be mandatory from 1 January 2026. In Germany, the acceptance of e-invoices is already mandatory and from 1 January 2027, the mandatory sending of e-invoices will also be phased in. This also affects Dutch companies, particularly if they perform services in a Member State of the European Union from a legal entity or permanent establishment based in that Member State. They will have to adapt their invoicing systems to the new VIDA rules.

There will be updated rules for the platform economy. According to the new rules, platforms that facilitate services in the passenger transport sector – such as Uber – and short-term accommodation – such as Airbnb – will be responsible for collecting and paying VAT to the tax authorities when their users do not do so, for example because they are small businesses or individual providers. A bill on the platform economy has now been submitted for internet consultation.

Further expansion of the single VAT registration. Building on the existing ‘one-stop shop’ (OSS) system for e-commerce, the proposals would enable more businesses selling to consumers in another EU country to fulfil their VAT obligations via an online portal in a single EU country. Further measures to improve VAT collection include making the ‘one-stop shop for imports’ (IOSS) mandatory for certain platforms that facilitate sales by persons established outside the EU to consumers in the EU. A bill for this regulation is expected to be sent to the House of Commons in 2026.

Tip!
Seek advice from your advisor on the above points.

1.38 Prepare for DAC8 if you are a crypto service provider

DAC8 will come into force on 1 January 2026. This is a directive that requires crypto service providers (brokers, exchanges and digital wallet providers) to record, check and report customer data and transactions. If you or your company falls under this regulation, you must report your clients’ details, such as name, address, tax number/social security number, as well as the transactions carried out, by 31 January 2027 at the latest.

2. IB entrepreneurs

2.1 Keep track of your hours!

The hour criterion is the key to many tax allowances for IB entrepreneurs. These include the self-employed person’s allowance, the start-up allowance, the allowance for research and development work and the co-worker allowance. You must demonstrate that you have spent at least 1,225 hours on the business in a calendar year. If you are not (or no longer) a start-up entrepreneur and you perform other work (in or outside of employment) in addition to work for your business, you must also demonstrate that more than half of the time available for work has been spent on your business.

Tip!
If you are a start-up entrepreneur, keep accurate records of all your activities, including the time spent on your business, and consult your advisor in good time.

2.2 Transferring the retirement reserve and/or termination profit to reduce box 3 tax

If you plan to supplement your retirement provision this year by paying the retirement reserve and/or termination profit into a bank savings account or annuity product, please do so before 1 January 2026. This will reduce your assets in box 3, which will probably lower your box 3 tax liability.

Tip!
Ask your accountant to calculate the maximum tax-deductible amount you can pay in.

Tip!
The deposit must not only be made administratively, but must also actually be paid. Ensure that the company has sufficient liquidity.

2.3 Paying the retirement reserve in years with lower profits

If you expect low profits this year and you have liquidity, you can deposit the retirement reserve into a bank savings or annuity product. This will result in a (partial) release of the retirement reserve. This release is taxed at a lower rate than the annuity deduction due to the SME profit exemption. In addition, the release of the retirement reserve will increase the taxable business profit. This may also increase the employed person’s tax credit and save you additional income tax. Consult your tax advisor to see whether this is advantageous for you.

2.4 Opt for a business remuneration for your assisting partner

If your partner works in your business, it is reasonable to grant them an adequate remuneration. You have four options to choose from: you can enter into a husband/wife partnership, you can enter into an employment relationship with your partner, you can agree on a realistic remuneration for work, or you can opt for the co-worker deduction.

A civil-law employment contract with your partner requires that there be a relationship of authority by virtue of the employment contract. In the case of such an employment relationship, you can make use of facilities in the payroll tax. If you choose to grant your partner a fair remuneration, you can deduct this remuneration as labour costs from your profits. However, this remuneration must amount to €5,000 or more and must actually be paid.

You can apply the co-worker deduction if you, as an entrepreneur, make a profit, meet the hour criterion and your partner works at least 525 hours in your business during the calendar year without receiving any remuneration that you can deduct from your profits. The deduction amounts to a percentage of the profit ranging from 1.25% to a maximum of 4%, depending on the number of hours your partner works. Unlike employment and remuneration of £5,000 or more, your partner is not liable for tax on the co-worker deduction you claim.

The choice between an employment contract, a realistic remuneration or the co-worker deduction is determined by the actual situation. Have your tax advisor check which option is best for you and your partner before the end of the year.

Please note
The co-worker deduction will only be deductible at a maximum rate of 37.48% in 2025 and 37.56% in 2026.

2.5 Take out disability insurance in a favourable year

On Prinsjesdag (Budget Day) 2024, it was announced that the current government aims to make basic disability insurance for self-employed persons compulsory for entrepreneurs in 2027. The premium is tax deductible. Consult your adviser to determine whether it is advantageous to take out disability insurance.

2.6 Avoid tax interest and request a provisional assessment

For the 2025 income tax assessment, the Tax and Customs Administration will charge interest of currently 6.5% from 1 July 2026 on the taxable amount to be determined at that time, insofar as no provisional assessment has yet been imposed. This tax interest can be avoided by requesting a provisional assessment in good time, in which you estimate your profit and other income for 2025 as accurately as possible. So check whether a provisional assessment that has been imposed is correct. If the assessment is too low, request a new provisional assessment as soon as possible.

Tip!
If you wish to make use of the current mass objection procedures against the tax interest rate, you must first submit an objection (or have one submitted on your behalf). For provisional assessments, you must first submit a request for review. These requests are not included in the mass objection procedure. Ask your advisor.

3. Entrepreneurs with a private limited company

3.1 Two-tier rate for substantial interest 2024

You will then pay 24.5% tax on the first €67,804 and 31% on any amount above that. If you have a fiscal partner, you can pay out €135,608 at 24.5% dividend. Think of dividends from your private limited company or the sale of your private limited company shares. Please note that from 2025 onwards, dividends will affect the amount of the general tax credit. Therefore, consult with your tax advisor in good time if you have plans to pay dividends or sell your shares in the future.

Tip!
It may be fiscally advantageous to bring forward or postpone a dividend payment until next year. Consult your adviser in good time.

3.2 Excessive borrowing from own company Act

The Excessive Borrowing from Own Company Act came into force on 1 January 2023. On the reference date of 31 December, the Tax and Customs Administration will assess whether you have borrowed too much from your own private limited company for tax purposes. If, on 31 December 2025, you and your partner or persons associated with you have borrowed more than €500,000 from your private limited company, the excess will be regarded as notional income in box 2. A debt to the company in connection with your own home will be disregarded under certain conditions. Please contact your adviser in good time to discuss the consequences of this legislation.

Please note
It is currently unclear whether the law on excessive borrowing is contrary to European law. It may be advisable to lodge an objection to the final assessment in which the notional income due to excessive borrowing is included. Consult your adviser to determine whether it is advisable to lodge an objection to excessive borrowing.

3.3 Make use of your partner’s general tax credit

If your partner was born after 31 December 1962, the general tax credit will not be paid to your partner if they have no income in 2025. Therefore, do not leave the general tax credit for 2025 (€3,068) unused and have your private limited company pay out a dividend of €12,522 in 2025. In the income tax return for the year 2025, this dividend payment will be allocated to the partner as income in box 2. The partner will owe 24.5% tax (€3,068) on this amount, which can be offset against the general tax credit of €3,068. This means that the dividend payment of €12,522 in 2025 will be received tax-free. Ask your adviser for advice.

3.4 Be careful when paying dividends

If your private limited company pays dividends, you pay tax on them in box 2. Currently, you pay 24.5% or 31% tax on those dividends. You can use the amounts received to repay private debts, cover private expenses or reduce a loan or current account with your private limited company. If you do not use the dividend to repay loans but leave it in your savings account, this may have consequences for the tax payable in box 3 and for your tax credits. Ask your adviser for advice.

Tip!
It may be fiscally advantageous to bring forward or postpone a dividend payment until next year. Consult your adviser in good time.

3.5 Assess your customary salary

Are you a director and major shareholder (DMS)? If so, you are expected to receive at least a ‘customary’ salary. You can determine this salary yourself. In 2025, your customary salary will be at least equal to the highest of the following three amounts:

• 100% of the salary from the ‘most comparable employment’;
• the highest salary of the other employees within the company or affiliated entities;
• €56,000.

In some cases, you may apply a customary wage lower than €56,000. For example, if you only work part-time for your private limited company. In that case, you must be able to demonstrate that you actually work less than 40 hours per week and that the proportional part of the wage of the most comparable employment or the highest wage of your employee is lower than €56,000.

Tip!
Seek advice from your adviser on this matter.

3.6 Voorkom belasting over een extra beloning: dividend in plaats van loon

Do you run your business through a private limited company and would you like to pay yourself a bonus this year? By paying out a dividend instead of a bonus, you may be able to save on tax. Ask your adviser for advice.

Please note
Before paying out dividends, a balance sheet test and a distribution test must be carried out. Always check this.

3.7 Non-deductible AB loss: request conversion into a discount

If you, the director/major shareholder and your partner no longer have a substantial interest, but still have un d losses from a substantial interest, ask the Tax and Customs Administration to convert the un d loss from a substantial interest into a tax credit of 24.5% (2025) of the amount of this loss. For more information, please contact your adviser.

3.8 Liquidation of a participating interest: claim the loss

If the private limited company liquidates a participation – a subsidiary – the liquidation loss is deductible under certain conditions: the participation exemption does not apply to a liquidation loss. The liquidation loss can only be taken into account once the liquidation of the subsidiary has been completed. If your private limited company still wants to claim a liquidation loss in 2025, make sure that the liquidation is fully completed in 2025. Would it be better for tax purposes to use the loss in a subsequent year? If so, wait before completing the liquidation, as this will allow the tax loss to remain deductible for longer.

Please note
You can only take the liquidation loss into account if you liquidate within three years of the calendar year in which the company ceased trading.

3.9 Form a fiscal unity and reap the benefits

If you have several private limited companies, you must file a corporation tax return for each company. This changes if you request that private limited companies be included in a fiscal unity. In that case, only one corporation tax return needs to be filed. Most intercompany transactions will also no longer be relevant for corporation tax purposes. This means you will not have to pay tax on the profits from these transactions.

Furthermore, losses incurred by one company can be offset against the profits of another company.

Please note
Special rules apply to the offsetting of losses carried forward. Consult your adviser.

In order to form a fiscal unity for corporation tax purposes, a number of requirements must be met. For example, the parent company must own at least 95% of the shares.

Whether it is advantageous to form a fiscal unity for corporation tax purposes depends, among other things, on the results of the various companies. Please note that for taxable amounts above €200,000, a corporation tax rate of 25.8% applies instead of 19%. Consult your advisor.

Tip!
Within a corporate tax entity, the companies must divide the corporation tax due. Therefore, ensure that you have an agreement in place that clearly sets out how this corporation tax is to be settled.

Please note
Consult your adviser to find out whether a fiscal unity could be advantageous. If you wish to enter into a fiscal unity with effect from 1 January 2026, you must submit a request before 1 April 2026.

3.10 Terminate your fiscal unity in good time and avoid disadvantages

Do you have a fiscal unity for corporation tax purposes? If so, this can offer many advantages. However, a fiscal unity can also have disadvantages. This is because all companies are jointly and severally liable for the corporation tax debt of the fiscal unity ( ). You can avoid this disadvantage for future debts by terminating the fiscal unity.

A request to terminate the fiscal unity must be made before the desired date of termination. So if you want to terminate the fiscal unity as of 1 January 2026, you must submit the request no later than 31 December 2025. Here too, the amount of the fiscal unity’s taxable income may influence the decision whether or not to terminate the fiscal unity. If tangible or intangible fixed assets have been transferred within the fiscal unity from one company to another in the past six years, the termination may result in a profit. Consult your adviser.

3.11 Report the dissolution of a fiscal unity for VAT purposes

Does your company consist of several private limited companies that form a fiscal unity for turnover tax purposes? And are you selling one of those private limited companies? If so, this fiscal unity will be dissolved. You must report this to the Tax and Customs Administration, otherwise the remaining private limited companies will remain liable for the VAT debts of the sold private limited company and also for the VAT debts of the sold private limited company that arise after the sale of the shares.

3.12 Take advantage of the low corporation tax rate!

Keep your private limited company’s profit below £200,000 to benefit from the low corporation tax rate of 19%. Bring forward costs and defer income to save corporation tax. For example, by making use of the cost equalisation reserve, the reinvestment reserve, provisions or accelerated depreciation. Consult your adviser to see if this is possible for you.

3.13 Consider terminating the VAT fiscal unity

Your company may be facing difficult times. Is one of your operating companies performing poorly? Are you concerned that this subsidiary will not survive?

If your holding company forms a VAT group with that operating company, you may want to consider breaking up that group. If your operating company does not survive, your holding company will be liable for the operating company’s VAT debt. You will need to notify the Tax and Customs Administration in writing that you are dissolving the fiscal unity for turnover tax purposes. Otherwise, the various parts of the old fiscal unity will remain liable for each other’s turnover tax debts. See also section 3.11 above.

Please note
Breaking up the VAT fiscal unity requires a change in the actual relationships. Consult with your tax adviser to determine whether this is desirable and how best to approach it in your situation.

3.14 Apply the tax incentives for innovation

Do you run a business through a private limited company? If so, you may be able to apply the innovation box. Profits that your company generates from innovative activities will then only be taxed at a rate of 9%. There are also other tax incentives that can generate (significant) liquidity. Consider, for example, the tax credit for research and development (R&D scheme).

There are often deadlines for making use of these schemes. Consult your adviser.

3.15 Report inability to pay in good time

Is your private limited company unable to pay the wage tax and/or turnover tax due on time? If so, as a director of the private limited company, make sure you report this inability to pay to the Tax and Customs Administration in good time. If you fail to do so, you may be held liable as a director for the debts of the private limited company. The report must be made quickly: generally within two weeks of the date on which the private limited company should have paid the tax.

Please note
In 2023, the Supreme Court referred preliminary questions to the European Court of Justice as to whether the Dutch rules on reporting inability to pay VAT are unreasonably onerous. In 2025, following the ruling of the European Court of Justice on the preliminary questions, the Supreme Court ruled that there was no incompatibility with European legislation.

Tip!
It may be an option to request a relaxation of the payment arrangements for (coronavirus-related) tax debts.

Please note
If you are experiencing liquidity problems, contact your adviser as soon as possible to discuss whether, when and how a notification should be made.

3.16 Check the provisional corporation tax assessment for 2025

The rules on tax interest are strict. Compared to the interest on a savings account, the interest you have to pay to the tax authorities is very high. From 2025, a rate of 6.5% (depending on the ECB interest rate) will apply to all taxes, with the exception of corporation tax, for which a rate of 9% (depending on the ECB interest rate) will apply. You should therefore take a critical look at your provisional assessment or provisional refund. Did your private limited company perform better than expected in 2025? Do the (provisional) figures show that the company will have to pay additional corporation tax for 2025? If so, request an adjustment to the provisional corporation tax assessment for 2025. This will enable you to avoid tax interest.

If you wish to lodge an objection against the tax interest, please contact the tax advisers at AAme.

Tip!
There are currently a large number of objection procedures against the tax interest rate. If you wish to make use of this, you will first need to submit an objection (or have one submitted on your behalf). For provisional assessments, you must first submit a request for review. These requests are not included in the mass objection procedure. Ask your adviser..

Please note
You can avoid tax interest by submitting a request for a provisional assessment for 2025 before 1 May 2026, or by submitting your corporation tax return for 2025 before 1 June 2026.

3.17 Avoid disputes: always draw up a proper loan agreement

In recent years, the Tax and Customs Administration has been paying a lot of attention to loans between companies. If the loan has not been granted on commercial terms, it is considered non-commercial. A loan may be considered non-commercial if no repayment schedule has been agreed or if insufficient security has been provided to the creditor. If a loan is considered non-commercial, any loss on that loan is not deductible from profit ( ). To prevent a loan from being uncommercial, you must first draw up a loan agreement. Ensure that you make clear agreements about the interest and repayments to be paid and about security for the creditor. This also applies if the loan is granted between the company and the shareholder who is a natural person.

3.18 Check whether you have recorded all agreements with the company

The director/major shareholder and the private limited company are often regarded as one and the same. Strictly speaking, this is not the case. This means that all agreements between the private limited company and the director/major shareholder must be recorded in writing. You should therefore check whether this has been done for all agreements (employment contract, loan agreement, etc.).

Tip!
While you are busy recording everything in writing, check whether all your employees have a written employment contract. Without a written employment contract, the rate for the unemployment insurance contribution is higher.

3.19 Reporting obligation for work-related personal mobility for large employers

If your organisation has 100 or more employees, you will be required to report on your employees’ business travel and commuting from 1 July 2024. This reporting obligation has been introduced to gain insight into CO2 emissions in the Netherlands, with a view to reducing them. You must submit the requested data for 2025 by 30 June 2026 at the latest.

3.20 Make use of the corporate income tax deduction for donations

There is a scheme for gift deductions in corporation tax. This deduction amounts to a maximum of 50% of the profit, up to a maximum of €100,000. In principle, a donation by a private limited company can be regarded as satisfying the needs of the shareholder(s) who are natural persons. This would then lead to a disguised dividend payment that is subject to dividend tax and income tax. Since 2025, donations above the maximum deductible amount have been subject to dividend tax and income tax for the director and major shareholder. In the past, it was approved that gifts up to the maximum amount of €100,000 did not lead to a disguised dividend payment. This meant that no dividend tax or income tax was payable on these gifts. It is not certain whether this approval still applies. It is advisable to consult with the Tax and Customs Administration in advance.

Tip!
Are you considering making a donation to an ANBI from your private limited company in excess of the maximum deductible amount? If so, consider replacing the donation with an amount for sponsorship or advertising. Such expenses, which are offset by a consideration in return, are not considered donations under certain conditions and are therefore simply deductible from the profit. Please note that the recipient of the sponsorship or advertising may be liable for sales tax. This is disadvantageous for you if you cannot deduct the sales tax.

3.21 Open limited partnership and mutual fund

With effect from 2025, open limited partnerships (commanditaire vennootschap) will become fiscally transparent and mutual funds will generally no longer be independently liable for corporation tax. In principle, this led to a mandatory transfer, including tax settlement of assets, and a disposal of the participation by the limited partner or the beneficiary to the mutual fund as at 31 December 2024. Due to an amendment to the transitional law, open mutual funds (FGR) that intended to restructure before 1 January 2025 have until 31 December 2025 to complete this without immediate tax settlement. It is therefore important to act quickly if this is desired but not yet completed, especially since a solicitor is usually involved in this process.

3.22 Prepare FGRs for transitional law

FGRs (funds for joint account) that were fiscally transparent until 2024 may temporarily opt not to be classified as taxable. All participants must agree to the continuation of transitional law by 28 February 2026 at the latest. This prevents short-term tax liability in 2025 and 2026. Transitional law applies until 1 January 2028 at the latest.

3.23 Prepare your organisation for equal terms and conditions of employment for temporary workers

From 1 January 2026, all temporary workers and seconded employees will be entitled to equivalent terms and conditions of employment as permanent employees in comparable positions. This means that not only wages and allowances must be equal, but also the total package of terms and conditions of employment: holiday entitlement, travel allowance, training opportunities, end-of-year bonus, bonus schemes and other secondary and tertiary terms and conditions of employment. The familiar system of hirer remuneration will disappear completely. Ensure that your entire package of terms and conditions of employment is up to date and fully documented, including the staff handbook, company regulations and additional benefits such as gym memberships or bicycle schemes.

3.24 Check whether the sector classification for 2026 is correct

At the end of 2025, you will receive a decision from the Tax and Customs Administration with your sector classification and the corresponding contribution rates for the Return to Work Fund (Whk) for 2026. Check whether the classified sector corresponds to the activities of your company. An incorrect sector classification can lead to a significantly higher Whk contribution.

4. Private individuals

4.1 Combine deductions

For certain deductible costs, you must take into account an income-related threshold. This applies, for example, to your healthcare costs and donations to certain associations and charities that are ANBI or SBBI support foundations. It may then be advantageous to bring forward or postpone costs or donations so that you only have to deal with a threshold once, rather than every year.
Please note: there is a ceiling for the deduction of donations of 10% of your aggregate income before deduction of personal allowances. If your donations exceed this ceiling, it is better to split them.

Tip!
Consider converting your annual recurring donations into a periodic donation. In that case, no threshold applies. From 2025, a maximum of €1,500,000 will apply. Your adviser can help you with this.

Please note
Cash donations are no longer deductible. Payment by bank transfer is therefore necessary.

4.2 Consider cultural donations

Donations to cultural institutions are increased by 25% for the purposes of the gift deduction, but by no more than £1,250. From 2023, this maximum increase will apply to fiscal partners jointly. In its tax return systems, the Tax and Customs Administration will already assume a maximum increase of £1,250 for partners jointly until 2023.

Tip!
In its tax return systems, the Tax and Customs Administration has already assumed a maximum increase of €1,250 for partners together until 2023. Check whether 25% of the amount of your and your partner’s annual donations to cultural institutions in the years 2020-2022 exceeds that €1,250. If so, you can still ask the Tax and Customs Administration to reduce your tax assessment for those years. You can do this by submitting an official request for a reduction or, if the tax assessment was issued less than six weeks ago, by submitting an objection. For 2020, you must do this before 31 December 2025. The request must be received by the Tax and Customs Administration no later than 31 December 2025.

4.3 Pay annuity premiums on time

If you need an extra pension pot for your retirement, an annuity may be a good option. With an annuity, you can save for extra income in addition to or instead of your pension. You can use either an annuity insurance policy or a bank savings account for this purpose. You can deduct the premium or contribution paid. If you want to deduct the premiums in your 2025 income tax return, you must pay the annuity premium or contribution before 31 December 2025.

Please note
The premium paid is only deductible if you have a pension shortfall. This is determined on the basis of the annual allowance and reserve allowance. Your adviser can determine whether you have a pension shortfall and inform you whether the premium or contribution for an annuity is deductible.

Tip!
By paying the premium or contribution for an annuity this year, your bank balances will be lower on 1 January 2026, which may mean you pay less tax in box 3 for 2026. Consult your adviser to see if this is of interest to you.

4.4 Consider requesting averaging up to and including 2024

If you have had highly fluctuating income in three consecutive years, you may still be entitled to a tax refund. By averaging your income – distributing it equally – over those three years, you can offset the adverse effect of the progressive income tax rate. Averaging means that the tax is recalculated on the basis of your average income over those three years. The difference between the tax actually levied and the recalculated tax after averaging is refunded after deduction of a threshold. For 2024, that threshold is £545. Averaging is only possible for income in box 1. Consult your advisor for more information.

Tip!
Consult your adviser to find out whether averaging is beneficial for you and for which years. You may only submit one averaging request per year. Your adviser can also submit the request for you.

Please note
Averaging will be abolished as of 1 January 2023. The last period for which averaging is still possible is 2022, 2023 and 2024. The request for averaging must be made within 36 months after the final assessment for the three years has been irrevocably determined.

4.5 Villatax: consult with your adviser to determine whether it is worthwhile to lodge an objection

If, in 2025, you own a home with a WOZ value of more than €1,330,000 (2024: €1,310,000), an increased notional rental value of 2.35% will be taken into account for the value above this amount. This is referred to as the villa tax. This villa tax may be in breach of European law. Have you received a final income tax assessment that includes the villa tax? Consult with your advisor to determine whether it is worthwhile to lodge an objection! This must be done within six weeks of the date of the assessment.

4.6 Avoid the (high) box 3 levy

The tax-free allowance in box 3 will be €57,684 as of 1 January 2025 (this will be reduced to €51,396 as of 1 January 2026!). Tax partners do not pay tax on assets up to €115,368 (2026: €102,792). Above that amount, you pay 36% tax on the income in box 3. The income in box 3 is calculated as follows. First, a fixed income is calculated for three asset categories: bank balances, investments/other assets and debts. The flat-rate percentages for 2025 for bank balances and debts will not be announced until February 2026(!). Based on provisional figures, these flat rates are 1.44% for bank balances and 2.62% for debts. The flat rate for investments in 2025 is 5.88% (increased to 7.78% in 2026). These flat-rate incomes are added together and divided by your total assets (rate of return). You multiply this rate of return by your assets above your tax-free allowance. In 2025, you will pay 36% (2026: 36%) tax on the income calculated in this way in box 3.

Please note
From 1 January 2023, cash, shares in the owners’ association reserve fund and third-party accounts held by solicitors/bailiffs will be taxed on the basis of the fixed return for bank balances.

Tip!
The flat-rate percentages for investments are higher than for bank balances and debts. It may be advantageous for the tax in box 3 to use investments to repay debts or, after selling investments, to keep the proceeds as a bank balance. If you do this, make sure you do so before the reference date of 1 January 2026.

Please note
In connection with anti-abuse provisions, you must maintain a reduction in investments in the last quarter of 2025 in favour of your bank balance for at least three months. Unless you can demonstrate that there are business reasons for doing so. Otherwise, these transactions will be ignored on the reference date of 1 January 2026.

Tip!
In 2026, you may also opt for taxation based on the actual return achieved (see below). Due to the increase in the fixed return on other assets, this may be more advantageous.

4.7 Check whether applying the box 3 rebuttal rule offers any advantages

In the so-called 6 June judgments of 2024, the Supreme Court ruled that the Box 3 Legal Remedy (2017-2022) and the Box 3 Bridging Act (2023 and beyond) are not acceptable. The Supreme Court believes that legal remedy must be provided by aligning with the actual return. The Box 3 rebuttal scheme now offers the possibility to do so. It is advantageous to invoke this if the total actual return for the year is lower than the fixed return. The calculation rules for determining the actual return have been provided by the Supreme Court. Unrealised increases in value are also included, for example, and costs, with the exception of interest, are not deductible. In addition, no account is taken of the tax-free allowance. Consult your adviser to determine whether invoking the Box 3 rebuttal scheme Act is beneficial for you!

Please note
It is possible to make use of the counter-evidence scheme for the years 2017 to 2027. For the years 2017 to 2020, this is only possible if the final assessment was not yet irrevocably determined on 24 December 2021 and you have lodged an objection or submitted a request for an ex officio reduction in good time. It is still possible to submit an ex officio request for the year 2020 before the end of the year. Such a request must be received by the Tax and Customs Administration within five years of the end of the relevant tax year. Please contact your adviser for more information.

To invoke the counter-evidence scheme, you must use the Actual Return Statement (OWR) form. Since July 2025, the Tax and Customs Administration has been sending letters in phases to inform taxpayers each year whether the form may be submitted. If you receive such a letter, please contact your advisor as soon as possible! In some cases, the response period is only twelve weeks! In certain cases, a postponement may be possible.

Tip!
If the actual return in box 3 for a particular year is higher than the fixed return, you do not need to do anything and the lower fixed return applies. This is also the case if you opt to apply the actual return for another year. You can make this choice annually.

4.8 Opt for green investments in 2026

Do you have assets in box 3 on which you have to pay income tax? If so, consider whether it would be advantageous to invest in green investments. In 2026, there will still be an exemption for green investments in box 3. On 1 January of that year (reference date), this exemption will amount to a maximum of €26,715 per person (€53,430 for fiscal partners). Incidentally, the exemption for green investments held on 1 January 2025 was €26,312 per person. The tax credit for green investments in 2025 and 2026 will be only 0.1% of the exemption in both years.

Please note
The special scheme in box 3 for green investments was initially to be abolished in 2027, but this has now been postponed to 2028. However, in 2027, only an exemption of €200 will apply.

4.9 Make larger private expenditures this year!

If your assets in box 3 currently exceed the tax-free allowance and you have some of these assets in liquid form, consider purchasing a (new) car, boat, caravan, jewellery, etc. or new furnishings for your home this year. Such possessions for personal use are not included in the basis for the capital gains tax. This means that if you make a purchase of, for example, €50,000 before the end of this year, your assets in box 3 will be reduced by €50,000 on 1 January 2026, while you do not have to declare the value of the car or furnishings you have acquired in box 3. This may allow you to remain within the tax-free allowance, saving you tax in box 3. Consult your adviser for the options.

4.10 Settle small debts and/or tax debts before the end of this year

Debts reduce the tax base in box 3 only for the amount above the debt threshold. For 2026, a threshold of approximately £3,800 per person will probably apply again for each fiscal partner. If your assets are high enough that you pay tax in box 3 and you have a small total amount of debts that you can declare in box 3, it is advisable to pay off these debts. By paying off these small debts before the reference date of 1 January 2026, you reduce your taxable bank balance. And since you cannot deduct these small debts anyway, you will not be missing out on any deductions.

Outstanding tax debts do not count as debt in box 3, with the exception of inheritance tax debts. By paying the outstanding tax debts from your private assets before 1 January 2026, this money will no longer be included as taxable bank balance in box 3 in 2026.

4.11 Purchase or sale of your own home and taxation in box 3: before or after 31 December 2025?

If you are planning to sell your own home in the near future, it is advantageous to postpone the transfer of ownership until after the turn of the year if you have not yet purchased another home for which you intend to use the proceeds from the sale of your current home. If you sell your home this year and transfer ownership by means of a notarial deed, the proceeds will be included in your box 3 assets. By transferring ownership after the turn of the year, your home will not be subject to capital gains tax as of 1 January 2026.
If you want to buy your own home and pay for it with a substantial amount of your own capital, the opposite applies. In that case, your assets in box 3 will be transferred to box 1, which makes it advantageous to have the property transferred before the turn of the year.

4.12 Postpone the purchase of your first home until 2026

If you are going to buy your (first) home this year, it may be fiscally advantageous for a first-time buyer to postpone the notarial transfer until 2026.
As of 1 January 2026, the starter exemption for transfer tax will be increased from €525,000 (2025) to €555,000. If the purchase price of your (first) home is between €525,000 and €555,000, postponing the notarial transfer until 2026 could save you 2% in transfer tax. To be eligible for the starter exemption for transfer tax, the following conditions apply:

• The buyer of the home must be at least 18 years old, but not yet 35 years old;
• The total value of the home must not exceed
  €525,000 (2025: €555,000);
• The buyer of the home has not previously used the starter exemption for transfer tax.

From 2025 onwards, the acquisition of the beneficial ownership of a home will no longer be excluded from the 2% rate or from the starter exemption. The starter exemption can only be used once. If, for example, the starter exemption has been used when acquiring the beneficial ownership, it cannot be used again when subsequently acquiring the legal ownership.

A key agreement is often concluded in order to be able to carry out work on the property prior to the legal acquisition. If this means that the risk of a change in value is transferred to the buyer to some extent, this constitutes an acquisition of beneficial ownership. This acquisition is subject to transfer tax.

From 2025 onwards, a key agreement will no longer be regarded as an acquisition of beneficial ownership and will therefore not be subject to tax, provided that the legal transfer of the property takes place within six months and the property is subject to the 2% rate or the starter exemption.

Please note
The starter exemption for transfer tax also requires the buyer to declare clearly, unequivocally and without reservation in writing that they will use the property as their main residence on a permanent basis.

4.13 Postpone the purchase of a second home until 2026

Are you planning to purchase a second home, for example a holiday home for your own use or for rental? Try to postpone the purchase until 2026. This is because the transfer tax will be reduced from 10.4% to 8% for homes that are not for your own use as of 1 January 2026.

Please note
For the purchase of other properties, such as office buildings or commercial premises, the rate of 10.4% will continue to apply in 2026.

4.14 Note the vacancy rate for rented homes

If you own a property and let it, you may apply a correction to the value due to the let status, the vacancy value ratio. This rule applies to both income tax (box 3) and inheritance tax. If certain conditions are met, the value is determined as the WOZ value multiplied by the vacancy value ratio. The vacancy value ratio varies from 73% to 100% and depends on the percentage of the annual rent in relation to the WOZ value. From 2026 onwards, it will be determined that if the rent or lease price agreed between related parties is such that it would not have been agreed between unrelated third parties, this situation will be immediately excluded from the application of the vacancy value ratio and the associated table.

4.15 Make use of your partner’s general tax credit

If your partner was born after 31 December 1962, the general tax credit will not be paid to your partner if your partner has no income in 2025. Therefore, do not leave the general tax credit for 2025 (€3,068) unused and allocate part of your box 3- d assets to your partner. The partner will owe 36% tax on this amount, which can be offset against the general tax credit of £3,068. Ask your adviser for advice.

4.16 Make use of the income-related combination allowance (IACK)

In 2025, you will be entitled to IACK if you have an income from employment of more than €6,145, you have a child under the age of 12 who has been registered at your home address for at least 6 months of a calendar year, and if you have a partner, your income from employment is lower than that of your partner. The maximum IACK in 2025 will be €2,986. Co-parents may also be eligible for the IACK under certain conditions; a separate scheme applies to them. Please consult your adviser for more information.

Please note
The IACK will be phased out for all parents from 2027 onwards. As a result, the IACK will be abolished with effect from 1 January 2035.

4.17 Check the provisional income tax assessment for 2025

The rules on tax interest are strict. Compared to the interest on a savings account, the interest you have to pay to the tax authorities is very high. From 2025, a rate of 6.5% (depending on the ECB interest rate) will apply to all taxes, with the exception of corporation tax, for which a rate of 9% (depending on the ECB interest rate) will apply. You should therefore carefully review your provisional assessment or provisional refund. Check your provisional assessment or provisional refund for income tax for 2025. If it turns out that you will have to pay extra for 2025, request an adjustment to the provisional assessment or provisional refund for income tax for 2025. This will enable you to avoid tax interest. Consult your adviser for more information.

Tip!
There are currently a large number of objection procedures against the tax interest rate. If you wish to make use of this, you will first have to submit an objection (or have one submitted on your behalf). For provisional assessments, you must first submit a request for review. These requests are not included in the mass objection procedure. Ask your adviser.

Please note
You can avoid tax interest by submitting your income tax return for 2025 before 1 May 2026.

4.18 Remember the means test for benefits and personal contributions under the Long-Term Care Act (Wlz)

The two best-known exemptions for gifts to children are the annual exemption (€6,713 in 2025) and the one-off increased exemption (€32,195 in 2025). The increased exemption can only be used once for a child between the ages of 18 and 40. Have you forgotten to make a ‘large’ exempt gift to your son or daughter in time – before they turn 40? If your child’s spouse or partner is not yet 40, you can also make use of this exemption when making a gift to your child. Consult your adviser for the options.

Tip!
If, in connection with the means test, it is advisable to reduce your assets as at 1 January 2026, consider making gifts (see below), repaying your mortgage on your own home or bringing forward planned, larger purchases.

4.19 Make use of gift tax exemptions

The two best-known exemptions for gifts to children are the annual exemption (€6,713 in 2025) and the one-off increased exemption (€32,195 in 2025). The increased exemption can only be used once for a child between the ages of 18 and 40. Have you forgotten to make a ‘large’ exempt gift to your son or daughter in time – before they turn 40? If your child’s spouse or partner is not yet 40, you can also make use of this exemption when making a gift to your child. Consult your adviser for the options.

Please note
If you make use of the one-off increased exemption of €32,195, you will not be able to make use of the other increased exemptions (see below) in later years. If you have already made use of an increased gift tax exemption for your child, you will not be able to make use of this exemption again.

Please note
You must file a tax return if you make use of the one-off increased exemption. If you only make use of the annual exemption, you do not need to file a tax return.

4.20 Gift your child €67,064 tax-free for an expensive course of study

In 2025, parents will be able to make a one-off tax-free gift of €67,064 to a child to cover the costs of an expensive course of study. To be eligible for this exemption, the following conditions must be met:

• the child must be between 18 and 40 years of age at the time of the gift;
• the gift must be made in a single year, up to a maximum of £67,064;
• the child must use the amount of the gift to pay for the costs of a course of study or training for a profession whose costs, excluding living expenses, amount to at least £20,000 per year;
• the purpose of the donated amount for the specific study or training and the expected costs of that study or training must be laid down in a notarial deed, and the money must be spent on this no later than in the second year after the year of donation.

Please note
You must file a gift tax return if you make use of this exemption. If you have already made use of an increased exemption for the same person, you can no longer make use of this exemption. Consult your adviser.

4.21 Donate to your child or grandchild

Gifts to children are subject to a regular annual exemption of €6,713 (amount for 2025) and gifts to grandchildren are subject to an exemption of €2,690.

4.22 Gifts to non-recognised children

From 2026, biological non-recognised children will have the same rights as ‘ordinary’ children with regard to gift and inheritance tax. This will prevent biological, non-recognised children from having to pay more tax on a gift or inheritance than ordinary children. This change in the law is the result of a ruling by the Supreme Court. Biological unrecognised children could already claim the exemption and lower rate by invoking the hardship clause. From 2026, this will no longer be necessary, but a DNA test will be required to prove that the recipient of the gift or inheritance is a biological child of the donor or testator.

4.23 Gift under acknowledgement of debt

In the case of a gift under acknowledgement of debt, you make a gift to your children ‘on paper’: you gift a sum of money and you remain indebted for that amount. This means you owe your children a debt. This gives the children a claim against you. They can usually only claim this amount upon the death of the surviving parent. This type of gift is a good option if you do not have sufficient free funds available, for example if the money is tied up in your business or in investments. Incidentally, such a gift does have consequences for box 3. The parents incur a debt, while the children have a claim that is included in the assets in box 3. Consult your adviser.

Please note
You must pay the children interest of 6% per annum on the outstanding amount. If you fail to do so, the children will be deemed to have acquired the amount of the gift (plus the interest payable) upon death under inheritance law. They will then still have to pay inheritance tax on it. Your income must therefore be sufficient to pay the annual interest. In addition, the gift must in principle also be recorded by a solicitor.

Please note
During the debate on the 2026 Tax Plan, the government commented that if the gift under acknowledgement of debt is based solely on tax motives, this is undesirable. The current caretaker government is leaving it to the next government to take any measures against this. It is possible that gifts under acknowledgement of debt will no longer be possible.

4.24 Gifting a home to your children

The government has proposed that, with effect from 1 January 2027, the value of the home for gift tax purposes should be based on the market value rather than the WOZ value, as is currently the case.

Take this into account and take action before 1 January 2027 if you still want to use the WOZ value for a taxable gift. Consult your adviser for more information

4.25 Have your prenuptial agreement checked

The choice of a particular matrimonial property regime is often made consciously when entering into marriage and accepted as a given in the years that follow. However, changes in facts and circumstances over time may mean that a different matrimonial property regime is much more favourable than the one originally chosen. It is therefore advisable to review this periodically, particularly in the event of a change in family circumstances or a significant increase or decrease in assets.

Please note
Any changes to or the conclusion of a prenuptial agreement must be done through a solicitor

4.26 Please note in the case of unequal fractional community property

An unequal division of property agreement is an agreement between spouses whereby the joint assets are not divided equally (i.e. not 50/50), but in unequal shares, for example 90% for one spouse and 10% for the other. This agreement could result in tax advantages in the event of death or divorce. It was seen as a way of transferring assets in a more tax-efficient manner, particularly if one partner was expected to die earlier. In the event of death, for example, only 10% of the community would be liable for inheritance tax. The legislator does not consider such a construction desirable and has now stipulated the following:
in the case of a matrimonial community with unequal shares, any amount to which a spouse is entitled upon dissolution (due to death or divorce) of the matrimonial community that exceeds half of that community is subject to inheritance or gift tax. This also applies in the case of a final or periodic settlement clause whereby assets or income are settled on the basis of unequal entitlement to those assets or income.

Please note
The measure does not apply in the case of prenuptial agreements in which an unequal fractional community or a settlement clause with unequal fractions was already agreed before 16 September 2025, 16:00 hours. If, after that time, the spouses concerned amend their prenuptial agreement in such a way that the share in the matrimonial property or the assets to be settled changes, they will lose their entitlement to transitional law and the new regulations will apply with effect from 1 January 2026.

4.27 Implement the settlement clause in your prenuptial agreement

Are you married under a prenuptial agreement and does your prenuptial agreement include a settlement clause? Then do not forget to draw up the settlement with your spouse. If no settlement has been made (over a number of years), this can lead to highly unpleasant consequences in the event of death or divorce. In the event of death or divorce, it is often assumed that the partners were married in community of property.

Tip!
If you have failed to comply with the periodic settlement clause for many years, please contact your adviser. Such settlement clauses must be ‘repaired’ as soon as possible. With the help of a settlement agreement and a change to the settlement, the intentions of the parties can still be realised.

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