Prinsjesdag 2024: tax plans for eenmanszaken and partnerships

• Box 1 Income from employment, benefits, home ownership
• Box 2 Income from share ownership
• Box 3 Income from savings and investments
• Entrepreneur's tax deductions
• Changes to the Business succession scheme BOR
• Other income tax measures

Box 1 Income from employment, benefits, home ownership

In 2024, income in box 1 is taxed in 2 brackets. This will change to 3 brackets. In 2025, you will pay 35.82% tax on your income up to €38,441 in the new first bracket. This is about 1% lower than in 2024. In the new second bracket, you will pay 37.48% tax on your income between €38,441 and €76,817. That is about 0.5% more than in 2024. On your income above €76,817 you will pay 49.5% next year, the same as in 2024.

Those with lower incomes will benefit from the lower first bracket. Those with higher incomes will not see as much difference in their tax bill because of the higher rate in the new second bracket.

Box 1 includes deductions. These are costs that you can deduct from your income, which means you pay less income tax. For example, mortgage interest deduction for your own home and deductible gifts. But also the deductions for entrepreneurs, such as the private business ownership allowance (zelfstandigenaftrek), the working partner’s abatement (meewerkaftrek) and the SME profit exemption (MKB-winstvrijstelling). Is your income higher than €38,441 in 2025? Then in 2025 you will get back a maximum of 35.82% on the deductions, the rate of tax in the first bracket. This is slightly lower than in 2024.

Different rates apply to people receiving the state pension (AOW).

Box 2 Income from share ownership

If you own 5% or more of the shares in a company, you have a substantial interest (aanmerkelijk belang). You may then receive profit distribution or a dividend. In 2025, the tax rate on profit distributions up to €67,804 is 24.5%, the same as in 2024. On everything above that, you will pay 31% tax in 2025. That was 33% in 2024.

With this adjustment, the government wants to ensure that there is more balance between the tax rates for substantial interest holders, entrepreneurs with a sole proprietorship for example, and employees. This is to ensure that entrepreneurs do not choose a legal form solely because of tax differences.

Fiscal partners can split the total profit distribution. As a result, they use the low rate twice. This means, for example, that you pay the low rate of 24.5% on a distribution totalling €135,608 (2 x €67,804). A fiscal partner with no income cannot use the tax credits. By dividing the profit distribution, the partner can also use the general tax credit.

Box 3 Income from savings and investments

Do you have savings or investments? Then you will pay no tax on your assets up to €57,684 in 2025. If your assets exceed that amount then, just like this year, you will pay 36% tax on the return that the Tax Administration expects you to make in 2025. We call this a notional return.

Debts are also included in box 3. Do you have debts? The Tax Administration sets a notional return for that too. You deduct this return from the return on savings and investments. A fixed amount of your debts cannot be deducted. This is called the debt threshold.

These notional returns on savings and debts are set after the end of the 2025 calendar year. The return on investments is set by the Tax Administration at the beginning of 2025.

Entrepreneur's tax deductions

The SME profit exemption falls from 13.31% to 12.7% in 2025. The reduction in the private business ownership allowance (zelfstandigenaftrek) had been announced earlier. In 2025, the deduction will still be € 2,470 and this will continue to fall in the coming years. This means your taxable income is higher and you pay more tax.

Ch anges to the Business succession scheme BOR

Do you inherit or are you given a business? Then you pay inheritance or gift tax. How much tax you pay depends on the value of the business. You can use an exemption: the Business Succession Scheme (BOR).  

You can use the BOR if you meet three conditions:  

• The business must be active, not just making investments. 
• The previous owner must have been an owner for at least 5 years before making the gift. If you inherit the business, this is 1 year. This is called the ownership requirement. 
• You must continue the business for at least 5 years after taking it over. You are also not allowed to sell the shares during that period. 

Do you meet these requirements? Then you can make use of the BOR. That means you get an exemption of 100% if the value of the company is €1,325,253 or less. Is the company worth more? Then you get an 83% exemption for the value above that amount.  

On Budget Day, the government proposed reducing the continuation requirement from 5 to 3 years in 2025. This will, among other things, allow you to sell your business as early as 3 years after the gift or inheritance. 

A number of other changes to the BOR are expected in 2026. 

Other income tax measures

Contrary to previous reports, income tax gift deduction remains unchanged.

Please note: it is not yet certain when the amendments to the law will take effect

A legislative amendment must first be approved by the Lower and Upper Houses of parliament (Tweede en Eerste Kamer). After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch), the law can take effect.

An Order in Council (Algemene Maatregel van Bestuur, AMvB) or ministerial decree also applies only after publication in the Staatsblad or Staatscourant.

Find out more

Visit Business.gov.nl to see the complete overview of government plans that are important to your business. Or find out more about Budget Day on KVK.nl.