Back to list All Articles Archives Search RSS Terug naar lijst Alle artikelen Archieven Zoek RSS

New coalition plans income tax overhaul, boost to middle incomes

THE NETHERLANDS. The new coalition plans to shake up the income tax system by cutting the number of tax bands to two from 2019, according to broadcaster NOS.

The four parties involved in the talks – the VVD, D66, ChristenUnie and Christian Democrats – are currently looking at the financial impact of their plans, as the negotiation process draws to a close.

The change will cut the tax bill of someone earning €40,000 by €1,200 a year, but middle and high earners will benefit most, the broadcaster said. In total, the tax cuts will cost €5bn.

The new system will involve an income tax rate of 37% on earnings up to €68,000 and 49.5% for all income above that, NOS said. Currently taxpayers are charged roughly 36.55% on earnings up to €20,000, 40.8% on earnings up to €67,000 and 52% above that.

To pay for the changes, the new coalition will increase value-added tax (btw) on some items and increase energy taxes, NOS said.

There may also be changes to mortgage tax relief. Although the VVD opposes a further reduction, D66, ChristenUnie and the CDA all favour further cuts, arguing that the low interest rates will minimise the impact on home owners.

This article appeared first on

About is a proThe Netherlands and Belgium will today sign a formal treaty swapping pieces of land along their border at the Maas river.vider of quality Dutch news and current affairs in English for an international audience. Some 25,000 people read every day, either online, through our daily digital newsletter or via our social media channels.



There are currently no comments.Er zijn geen reacties.

Post a Comment

Laat een reactie achter

Door een reactie te plaatsen gaat u akkoord met de verwerking van de ingevulde gegevens door Observant.
Voor meer informatie: Privacyverklaring
By responding, you agree to send the entered data to Observant.
For more info: Privacy statement

Name (required)

Email (required)