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Dutch Coalition Government Agrees on Tax Plans

20 May 2024

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Proposed Changes

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Netherlands

The coalition parties of the new Dutch government have published their general agreement and budgetary annex, which includes the government's tax plans. Some of the main measures include: Reversing the previously approved abolishment of the tax-free share buyback facility for listed companies from 1 January 2025; Increasing the 20% of EBITDA interest deduction limitation to 25%; Canceling the planned reduction in the SME profit exemption (reduction) rate to 12.03% in 2025 (currently scheduled reduction to 12.7% in 2025 will be maintained); Increasing the general unemployment insurance (AWF) contribution by 0.1 percentage points from 2026 for both permanent and flexible contract...