On Prinsjesdag, the Dutch Government presented the 2027 Tax Plan. Whilst there are no major systemic changes, the cumulative effect of the measures will be felt by many business owners. For instance, various tax benefits for business owners and employers are being further reduced. These are offset by incentives for innovation, sustainability and restructuring. On a positive note, the business succession scheme and the carry-forward scheme will not be further curtailed. We also note that some previously discussed measures are not included in the 2027 Tax Plan, such as adjustments relating to gifts under acknowledgement of debt, family loans and the overlap between the home-working allowance and the travel allowance.

What do these plans mean for your business? For example, in terms of investments, your employees, your vehicle fleet or business succession within the family. In this top 10 list, our tax specialists outline the most important changes from the 2027 Tax Plan and explain what they mean for you.

1. Fewer tax benefits for entrepreneurs
2. More flexibility for travel expenses, but cuts to the WKR
3. Driving fossil-fueled vehicles to become more expensive; ‘youngtimer’ scheme limit extended to 20 years
4. A lower inflation adjustment increases the tax burden in box 1
5. The postponement of Box 3 creates uncertainty
6. Greater support for innovation and sustainability
7. Tax incentive for start-ups and scale-ups
8. Higher AOF contribution due to the ‘freedom contribution’
9. Transfer tax on investment properties rises to 7%
10. Tax relief for specific healthcare costs to end in 2028

1. Fewer tax benefits for entrepreneurs

From 2027, the government will be scaling back various tax benefits for entrepreneurs. The self-employed person’s allowance and the start-up allowance will be reduced. The cessation allowance and the co-worker allowance will also be reduced and will eventually be phased out completely. The direction is clear: the tax difference between employees and the self-employed is narrowing.

The entrepreneur’s allowance reduces the profit on which an entrepreneur pays income tax. From 2027, various components of this allowance will be further scaled back. The self-employed person’s allowance will fall from €1,200 (2026) to €900. As a result, the taxable profit of entrepreneurs who meet the hours criterion will increase.

The start-up allowance will also be significantly reduced. This increase in the self-employed person’s allowance for start-up entrepreneurs will fall from €2,123 (2026) to €10 with effect from 1 January 2027 and will be completely abolished with effect from 1 January 2028. The discretionary depreciation allowance for start-ups will also be abolished with effect from 1 January 2028. The start-up allowance in the event of incapacity for work will be abolished with effect from 1 January 2029. The current maximum amounts are €12,000 in the first year, €8,000 in the second year and €4,000 in the third year. The scheme applies to entrepreneurs who do not meet the 1,225-hour criterion but do meet the reduced 800-hour criterion and are entitled to incapacity benefit.

The business closure allowance will be reduced in one go from a maximum of €3,630 to €908. The percentages for the co-worker allowance will be reduced in one go from 1.25%, 2%, 3% and 4% to 0.32%, 0.5%, 0.75% and 1% respectively. Both schemes will cease to apply at the start of the third calendar year following the year in which the reduction takes effect. As the changes come into force in 2027, the schemes will therefore cease to apply on 1 January 2030.

Start-up entrepreneurs, entrepreneurs who wish to cease trading within a few years, and entrepreneurs with a working partner will be particularly affected. The choice between a sole trader, a general partnership (VOF) or a private limited company (BV) therefore requires a fresh calculation based on your actual profits and personal circumstances.

Please note! In the event of significant changes to your profits, business partnerships or business succession, have the calculation redone to determine which legal form is most suitable for your business.

Tip! The higher aggregate income may also affect your entitlement to benefits. You should therefore check your estimated income for benefit purposes in good time for 2027 and 2028. Do you make use of the start-up allowance in the event of incapacity for work? If so, you should also check your estimated income for 2029.

2. More flexibility for travel expenses, but cuts to the WKR

Employers may, with retroactive effect up to and including 1 January 2026, reimburse a maximum of €0.25 per business kilometre tax-free. This was previously €0.23. The increase also applies to commuting. The government is now enshrining the increase in law with retroactive effect.

The increase does not automatically mean that every employee is entitled to €0.25 per kilometre. This depends on the employment contract, the collective labour agreement and the employer’s own mobility policy. For employers, a higher allowance may therefore lead to higher wage costs.

This relaxation is offset by a tightening of the work-related expenses scheme (WKR). The targeted exemption for sector-specific products is being abolished. Until now, employers were permitted to grant employees a 20 per cent staff discount on the market value, tax-free, up to a maximum of €500 per year. This exemption is being abolished. However, the discount may still be charged to the ‘free space’. If you exceed the ‘free space’, you will pay 80 per cent final levy on the amount above that limit.

The tax-free allowance on the first €400,000 of taxable payroll will increase from 2% to 2.16% with effect from 1 January 2027. As a result, you will receive a maximum of €640 extra tax-free allowance per year. This increase was adopted earlier and is therefore not part of the 2027 Tax Plan.

Tip! Update your staff handbook, expense claim policy and payroll administration in good time, and assess whether a higher mileage allowance is advisable from both a financial and an employment conditions perspective. Does your organisation offer staff discounts on sector-specific products? If so, consider what the expiry of this exemption will mean, particularly in the retail and manufacturing sectors.

3. Driving fossil-fueled vehicles to become more expensive; ‘youngtimer’ scheme limit extended to 20 years

If, as an employer, you make a passenger car with emissions available to an employee for private use from 2027 onwards, you will be subject to a pseudo-final levy of 12 per cent of the list price. This levy is in addition to the employee’s additional tax liability and you may not pass it on to the employee. Transitional provisions apply to cars made available before 1 January 2027.

Following consultation with the sector, four amendments are proposed. For example, the levy does not apply to replacement transport during the first fourteen calendar days of maintenance or repair. Manual-gear driving-school cars are also exempt. Until 31 December 2030, an exemption also applies to a fossil-fuelled passenger car that an employer makes available for private use no more than once per calendar year for a maximum of seven consecutive days. For example, in the case of a short-term hire car or a shared car. Finally, the transitional rules for fossil-fuelled passenger cars made available before 1 January 2027 will be extended until 31 December 2030. In addition to these changes, a so-called anti-cumulation provision will come into force on 1 January 2027, preventing this tax from being levied again on severance pay.

The ‘youngtimer’ scheme will be phased out more gradually than previously stipulated. The additional tax liability will continue to be based on the market value, but the age limit will rise from 16 years to 17 years in 2027 and to 20 years from 2028 onwards. The previously planned rapid increase to 25 years will therefore not go ahead. Transitional provisions apply to cars that were already made available by 31 December 2025 at the latest and which will be 17 years old in 2027. These cars may continue to benefit from the ‘youngtimer’ scheme throughout 2027. From 1 January 2028, the scheme will apply only to cars older than 20 years.

For employers, this makes the choice of a company car even more important. The contract term, drive type and the date on which a car is first made available can have significant tax implications. As a result, an existing lease plan may turn out to be much more expensive or, conversely, more attractive.

Tip! Before making any new leasing decisions, carefully assess the total employer costs, the employee’s taxable benefit, the lease term and the transitional tax rules.

4. A lower inflation adjustment increases the tax burden in box 1

Box 1 tax applies to, amongst other things, wages, pensions and business profits. Normally, the thresholds for the tax bands and various tax credits rise in line with inflation. This means that the tax burden normally remains the same if income rises in line with inflation.

In 2027 and 2028, the Government will apply the inflation adjustment only partially. Without this measure, the inflation adjustment for 2027 would amount to 2.6 per cent. Of this, 48 per cent will be applied. As a result, tax bracket thresholds and tax credits will rise less in line with inflation.

At the same time, the Box 1 rates will change. For taxpayers under state pension age, the rate in the first tax bracket will rise from 35.75% in 2026 to 36.23% in 2027. The rate in the second tax bracket will rise from 37.56% to 38.16%. The rate in the third bracket remains at 49.50 per cent. The threshold for the first bracket rises from €38,883 to €39,247. The threshold for the second bracket remains at €78,426

Due to the increase in tax rates and limited indexation, the tax burden in Box 1 will rise. This effect is mitigated for homeowners who can deduct their mortgage interest at a higher rate.

Please note! Always assess salary, dividends and profits in conjunction with one another. The general tax credit depends on aggregate income and may also be reduced by a dividend payment.

5. The postponement of Box 3 creates uncertainty

Box 3 taxes private assets, such as savings, investments and a second home. Under the current system, the Tax and Customs Administration calculates the return largely using flat-rate figures. If your actual return is lower, you may, subject to certain conditions, provide evidence to the contrary.

The Government has provisionally postponed consideration of the ‘Actual Return on Box 3’ Bill. It will present a new proposal in the 2027 Spring Memorandum. Consequently, the intended introduction on 1 January 2028 will not be met, or at the very least, this date remains uncertain. The Government is re-examining whether a capital gains tax would be more appropriate than a capital appreciation tax.

Under a capital appreciation tax, even unrealised increases in value are taken into account annually. Under a capital gains tax, tax is only levied upon sale. For entrepreneurs and directors/major shareholders with investments, let property or other assets that are difficult to sell, this makes a significant difference.

Until a new system comes into force, it remains important to keep accurate records of interest, dividends, rent, costs and changes in value. This information is required for the rebuttal scheme and for weighing up whether to invest privately or through a private limited company.

Tip! Don’t wait for the new system. Record the actual return on each asset annually and keep the supporting documents.

6. Greater support for innovation and sustainability

The government is making various tax schemes for investment and innovation more attractive. For example, the energy investment allowance will rise from 40% to 45.5% with effect from 1 January 2027. Are you investing in qualifying energy-efficient business assets? If so, this will allow you to claim an additional deduction from your profits for a larger proportion of your investment.

The payroll tax relief for research and development work is also being extended. The flat-rate hourly wage will rise from €29 to €33. This scheme reduces the payroll tax you, as an employer, pay when your employees are working on technically new products, processes or software.

Does your business make use of the innovation box? This scheme is also becoming more attractive. From 1 January 2027, the maximum flat-rate amount will rise from €25,000 to €100,000 per year. The flat rate remains capped at 25 per cent of profits.  The current three-year period of application will also remain unchanged. This means you can have a larger proportion of your profit taxed at the lower Innovation Box rate.

Tip! Would you like to make use of the energy investment allowance? Before you enter into any commitments, check whether the asset is included on the energy list. Then submit your application to the RVO within the applicable deadline.

7. Tax incentive for start-ups and scale-ups

To stimulate innovation and growth in specific young enterprises, the government is introducing an attractive tax scheme for employee share options at start-ups and scale-ups. In principle, the employee pays tax when they actually sell the shares resulting from the options. After deducting the exercise price attributable to the shares, only 65 per cent of the benefit is taxed as salary, subject to certain conditions. If the employee sells the share option entitlement themselves, this lower tax base does not apply. The employee may also opt in writing for taxation to take place earlier – at the time the option is exercised or as soon as the shares become tradable.

The scheme applies only to companies that qualify as start-ups or scale-ups and have received a decision from the Netherlands Enterprise Agency (RVO). This decision is valid for eight years from the date of issue. Subject to certain conditions, you may extend the decision in five-year increments, up to a maximum total duration of 23 years. In addition, in principle, there must be a minimum period of two years between the grant of the share option and the sale of that option or the shares arising from it. If the employee sells earlier due to a sale following the company’s initial public offering (IPO), an exception applies.

The scheme is due to come into force on 1 January 2027. The definitive date of entry into force will be determined by Royal Decree. Transitional provisions may apply to share option rights granted on or after 17 April 2025. For this to apply, the share option rights must not yet have been included in payroll tax as at 31 December 2026, and the other conditions must be met. In that case, your company must apply for the decision by 31 December 2027 at the latest.

Tip! Check in good time whether your company is eligible for an RVO decision. Also consider whether employee participation can help you attract, reward and retain talent.

8. Higher AOF contribution due to the ‘freedom contribution’

Employers also make a so-called ‘freedom contribution’ to help fund rising defence expenditure. The Government intends to collect most of this additional burden through an increase in the contribution to the Disability Insurance Fund (Aof). According to estimates, this increase will generate €1.5 billion in additional contribution revenue in 2027. From 2028 onwards, this will amount to €1.7 billion per year on a structural basis.

The high and low Aof contribution rates have not yet been finalised. The contribution rates will be announced at a later date, alongside the annual contribution rates for employees’ insurance schemes. As a result, it is not yet clear exactly how much your employer’s social security contributions will increase.

Tip! Take higher employer costs into account in your 2027 staff budget.  Adjust your payroll cost calculations as soon as the high and low Aof contribution rates for 2027 have been officially set.

9. Transfer tax on investment properties rises to 7%

Are you buying a property in which you do not intend to live permanently yourself? If so, you will pay transfer tax at the standard residential rate. This applies, for example, to a let property or a holiday home. From 1 January 2027, this rate will fall from 8% to 7%. The 2% rate for a property in which you intend to live yourself and the first-time buyer’s exemption remain unchanged.

This reduction does not apply to commercial premises. In the case of mixed-use properties, conversions and property development projects, there may be some debate as to which part qualifies as a residential property. The use and condition of the property at the time of acquisition play an important role in this regard.

Due to the rate reduction, it may be worth reconsidering the timing of the transaction. You should also take other factors into account, such as financing, return on investment, VAT and the legal structure.

Tip! Before signing the purchase agreement, have an assessment carried out to determine which rate applies to your situation. In doing so, investigate whether it is sensible and feasible to postpone the legal transfer of title until after 1 January 2027.

10. Tax relief for specific healthcare costs to end in 2028

Certain healthcare costs that are not reimbursed are currently deductible for income tax purposes, subject to certain conditions. These include specific medicines, medical aids, dietary costs, transport and additional family support. The deduction only applies after allowances and an income-related threshold have been taken into account.

The government is abolishing the deduction for specific healthcare costs with effect from 1 January 2028. The associated scheme for compensation for specific healthcare costs, the TSZ scheme, will also be abolished. For people with a chronic illness, the government is working on a targeted compensation scheme. The bill does not include any transitional provisions. The measure will primarily affect people with a chronic illness, a disability or structurally high non-reimbursed healthcare costs. Entrepreneurs and directors/major shareholders may also face higher net personal tax liabilities as a result. The financial impact varies greatly, as not every out-of-pocket healthcare expense is currently tax-deductible.

Tip! Make a list of your recurring deductible healthcare costs. This will show which tax benefits may be lost from 2028 onwards and to what extent a future compensation scheme will cover them.

What do the plans mean in general terms?

The 2027 Tax Plan does not opt for a single major overhaul of the system. The government is amending existing schemes step by step. Tax reliefs for businesses are being reduced, and employers will face additional costs relating to fossil-fuel-based transport. At the same time, support remains available for innovation, energy saving and certain restructuring measures. For water-intensive businesses, the removal of the tax ceiling on tap water could also lead to a significant rise in costs. Furthermore, a number of measures that were previously expected are missing.

For SMEs, the impact therefore often lies in the combination of factors. A higher travel allowance may go hand in hand with less scope under the work-related expenses scheme. Business succession affects not only the business succession scheme, but also financing, gifts, loans and the shareholding structure. And for directors/major shareholders, salary, dividends, Box 2, Box 3 and loans from the private limited company all interplay with one another.

The key message is therefore: do not just look at individual measures. Assess what the changes mean collectively for your business, your employees and your personal financial position. By preparing in good time, you can prevent the consequences of a tax change from only becoming apparent when it is too late to make adjustments.