Leaks from The Hague, firm rules

On Tuesday 15 September 2026, the Dutch government will present the Budget Memorandum and the 2027 Tax Plan. However, a considerable amount is already known. Some changes have already been passed into law, others appear in official preliminary publications, and parts of the budget plans have also been leaked.

Already final or currently applicable

More room under the Work-Related Costs Scheme
From 1 January 2027, the discretionary budget under the Work-Related Costs Scheme (WKR) will increase from 2.00% to 2.16% of the first €400,000 of the taxable payroll. The percentage above €400,000 will remain 1.18%.
For an employer with a taxable payroll of at least €400,000, this means a maximum of €640 in additional discretionary budget. This change has already been passed into law.

Tax-free mileage allowance of €0.25
Since 1 January 2026, employers may reimburse up to €0.25 per business kilometre tax-free. This also applies to commuting and to travel by bicycle or on foot. For public transport, employers may instead reimburse the actual costs tax-free, subject to the applicable conditions.
In 2026, the increase applies under a policy decree with retroactive effect to 1 January 2026. This decree expires on 1 January 2027. The government therefore intends to put the increase on a statutory footing through the 2027 Tax Plan.
Employers are not automatically required to increase the allowance. This depends on the employment contract, collective labour agreement or company policy.

Pseudo-final levy on fossil-fuel passenger cars
From 1 January 2027, an employer must pay a pseudo-final levy if it makes a fossil-fuel passenger car available to an employee for private use.

The levy will be 12% per year of the car’s list price, including VAT and Dutch private motor vehicle and motorcycle tax (BPM), calculated proportionately per calendar month. For a car first put into use more than 25 years ago, the fair market value will be used.

Important points:

1. commuting is treated as private use for this levy;
2. the rules also apply to hybrid passenger cars;
3. only passenger cars recorded in the vehicle registration system as having CO₂ emissions of 0 grams per kilometre are excluded;
4. the employer is liable for the pseudo-final levy, which is separate from the employee’s regular taxable company-car benefit; and
5. the levy may also apply where the employee demonstrates that no more than 500 private kilometres were driven for the purposes of the regular company-car benefit, because commuting is treated as private use for this pseudo-final levy.

Transitional rules apply to passenger cars that the employer first made available to one or more employees before 1 January 2027. The pseudo-final levy will not apply to these cars until 17 September 2030.

The levy does not apply to a business car used personally by an individual entrepreneur subject to Dutch income tax. It may, however, apply if that entrepreneur, acting as an employer, makes a fossil-fuel passenger car available to an employee. A director-major shareholder with a car provided by their own company may also be affected.

Youngtimer age threshold will increase to 25 years
In 2026, the Dutch youngtimer scheme generally applies to cars aged 16 years or older. Under legislation already passed, the age threshold will increase to 25 years on 1 January 2027.
Cars aged between 16 and 25 will then no longer qualify for the taxable benefit of 35% of their fair market value. In principle, the standard company-car benefit rules will apply to these cars again.
A transitional arrangement has been introduced by policy decree for a limited group affected by the increase in the age threshold from 15 to 16 years on 1 January 2026. The government intends to put this arrangement on a statutory footing in 2027. This does not change the main rule for 2027.
Various options for a more gradual transition to the age threshold of 25 years have also been examined. As at our cut-off date, no final amendment has been published. Unless new legislation is passed, the statutory age threshold of 25 years from 1 January 2027 remains the starting point.

Expat scheme reduced to 27% for many employees from 2027
The applicable rules depend on when the expat scheme was first applied to the employee:

1. no later than 31 December 2023: the maximum 30% allowance and the existing salary threshold will continue to apply;
2. during 2024: from 2027, a maximum allowance of 27% will apply, but the existing salary threshold will be retained; and
3. from 1 January 2025: from 2027, a maximum allowance of 27% and the new, higher salary threshold will apply.

An interruption or change in the application of the expat scheme may affect the transitional rules. Each employee’s position should therefore be assessed individually.

Transitional rules for partial non-resident taxpayer status will end
Partial non-resident taxpayer status was abolished from 1 January 2025. Only employees for whom the expat scheme was actually applied in the final payroll period of 2023 may, under the transitional rules and for as long as the expat scheme continues without interruption, still opt for partial non-resident taxpayer status in their Dutch income tax return until no later than 31 December 2026.
From 1 January 2027, this option will also end for this group. An expat living in the Netherlands will then, in principle, again be treated under the normal rules for resident taxpayers for Box 2 and Box 3. As a result, foreign interests in companies that qualify for Box 2 and assets held outside the Netherlands may fall within the Dutch tax base. The precise consequences depend on the individual circumstances, applicable exemptions and relevant tax treaties.

Self-employed persons deduction reduced to €900
For individual entrepreneurs subject to Dutch income tax who meet the applicable conditions, including the hours criterion, the self-employed persons deduction will decrease from €1,200 to €900 in 2027. This reduction was previously passed into law.

These measures are still proposals

The official preliminary overview of the 2027 Tax Plan includes the following measures, among others.

Limited inflation adjustment for income tax
The government intends to apply the annual tax table adjustment factor only partially in 2027 and 2028. As a result, tax amounts and income tax bracket thresholds may increase by less than they would under full inflation adjustment. The exact rates, amounts and effects on taxpayers will only become known on Budget Day.

Abolition of the exemption for products from the employer’s own business
The government proposes abolishing the specific WKR exemption for discounts on products from the employer’s own business or sector from 2027.
Employers may continue to offer employee discounts, but these will generally have to be included in the discretionary budget under the WKR. This proposal still requires parliamentary approval.

Higher Energy Investment Allowance
The government proposes increasing the Energy Investment Allowance (EIA) from 40% to 45.5% from 1 January 2027.
Entrepreneurs considering an energy-efficient investment may therefore wish to review the timing of that investment. Deferral is not automatically beneficial: the investment must also meet the applicable conditions and appear on the Energy List in force at that time.

Employee equity participation at startups and scale-ups
A more favourable scheme is being prepared for employees of qualifying startups and scale-ups. The proposal would defer taxation until no later than the disposal of the share options and reduce the taxable amount to 65% of the benefit.
The intended effective date is 1 January 2027. The final structure is still being developed, the bill still requires parliamentary approval and the scheme requires approval from the European Commission.

Real estate transfer tax on homes not occupied by the buyer
The government intends to reduce the real estate transfer tax rate for homes in which the buyer will not live on a long-term basis, such as investment properties, from 8% to 7% from 1 January 2027.
The proposed reduction will apply only to residential property and not to other types of real estate. The measure has not yet been passed into law.

Further reduction of the start-up deduction
In addition to the reduction of the self-employed persons deduction that has already been passed into law, the government intends to reduce the start-up deduction in 2027 and abolish it entirely from 1 January 2028.
The amount of the start-up deduction for 2027 will only become clear when the final bill is published.

Greentimer: no scheme yet
The government has commissioned research into a possible greentimer scheme for fully electric cars approximately five to eight years old. As at our cut-off date, no final public bill or government decision has been published. Employers, employees, director-major shareholders and entrepreneurs cannot therefore rely on such a scheme at this time.

Leaked, but not yet official

According to NOS, following earlier reporting by RTL Nieuws and confirmation from sources close to the negotiations, the budget agreement includes:

1. €1.5 billion for measures to support purchasing power;
2. a total tax increase of €750 million for higher-income taxpayers;
3. cancellation of proposed cuts to the Dutch state pension (AOW) and the maximum daily wage used to calculate social security benefits;
4. postponement of the reduction in the maximum duration of unemployment benefits;
5. almost €4 billion for innovation funds;
6. postponement of the increase in the compulsory health insurance excess; and
7. continuation of a temporary reduction in excise duties on petrol and diesel.

The exact tax measures are not yet known. For example, it is unclear how the tax increase for higher-income taxpayers will be implemented and which tax rates, tax credits or tax bases will be changed.

There is also uncertainty about fuel excise duties. The official preliminary overview published in June referred only to petrol, while the leaked information also mentions diesel.

The budget and new legislation require parliamentary support. Measures may be amended, postponed or rejected during the parliamentary process.

Box 3: bill officially still pending, possible delay leaked
The Actual Return Box 3 Bill was passed by the House of Representatives on 12 February 2026. The Senate debated the bill in plenary session on 30 June 2026 but postponed the vote pending announced supplementary bills.
According to leaked Budget Day plans, further consideration of the bill may be put on hold while alternatives are examined, including a system in which increases in value would more often be taxed only when realised. This has not yet been officially confirmed. The bill formally remains before the Senate and has not been withdrawn or rejected.
The previously intended effective date of 1 January 2028 is therefore uncertain. The final structure of a new Box 3 system has not yet been determined either.

What can you do now?

We recommend that you already:

1. identify which fossil-fuel and hybrid passenger cars will be made available to employees or director-major shareholders from 2027;
2. as an employer, determine which transitional rules under the expat scheme apply to each employee;
3. as an expat who still uses partial non-resident taxpayer status in 2026, have the Box 2 and Box 3 consequences from 2027 assessed in good time;
4. take account of the higher discretionary budget and the possible abolition of the exemption for products from the employer’s own business when preparing your 2027 WKR budget;
5. reassess planned energy investments in view of the proposed higher EIA; and
6. avoid making irreversible decisions based solely on proposed or leaked measures.

When will we know more?

The official Budget Day documents will be published on Tuesday 15 September 2026. According to the provisional timetable, the House of Representatives will vote on the package on Thursday 12 November 2026. The bills will then be considered by the Senate.

As soon as the official documents become available, we will update this overview. You will then receive a short and practical analysis of the final proposals and their possible consequences for you, your business and your employees.

Do you already have questions about your vehicle fleet, the Work-Related Costs Scheme, your expats, Box 3 or a planned investment? Please contact your adviser at AAme.