Global Daily Tax News, Dutch Government Confirms Measures For 2027 Tax Plan Bill, (Jun 22, 2026)

The Dutch Government has confirmed which tax reform measures are proposed to be included in the 2027 Tax Plan legislative package.

According to the Government, the Tax Plan will include measures from the 2026 Spring Memorandum and the 2026 Budget, including:

• Announcements that the income tax brackets and tax credits will not be fully adjusted for inflation. Under the Government's proposals, the first income tax bracket will increase from EUR38,441 to EUR38,883 in 2026, and the second income tax bracket will increase from EUR76,817 to EUR79,137;

• The transfer tax rate for homes purchased to be rented out or to be used as a holiday home will fall from eight percent to seven percent in 2027;

• The reduced VAT rate for ornamental plant products will be abolished effective from the year 2028, with VAT to rise from nine percent to 21 percent;

• The excise duty refund scheme for bio- and renewable fuels will be terminated as of January 1, 2027;

• The specific healthcare costs deduction scheme will be abolished as of 2028;

• Tax-free travel allowances will be increased from EUR0.23 per kilometer to EUR0.25;

• Motor vehicle tax rates for business delivery vans will be reduced by 50 percent for six months, starting July 1, 2026, until December 31, 2026;

• Motor vehicle tax rates for trucks will be reduced to zero percent for six months, starting July 1, 2026, until December 31, 2026;

• The deduction percentage under the Energy Investment Allowance (EIA) will be increased from 40 percent to 45.5 percent, from January 1, 2027; and

• Tax relief for petrol will be extended for all of 2027.

Further, the 2027 Tax Plan will provide for the reduction of the start-up deduction from January 1, 2027, and completely repeal the relief from January 1, 2028. The measure enables entrepreneurs who have been self-employed for fewer than five years to claim an additional deduction of up to EUR2,123 for a maximum of three years, subject to conditions.

Finally, the Tax Plan will adjust the tax treatment of currency results on hedging instruments under the participation exemption.