On September 18, 2012, the Dutch government released various bills that propose amendments to Dutch tax law.
In view of the outcome of the recent Dutch general election and the pending negotiations to form a new government, it remains to be seen whether the proposals will be adopted in their current form by Parliament. The most important proposed amendments are:
Dutch personal income tax:
Introduction of a limitation of the deductibility of financing costs incurred in respect of a taxpayer’s principal abode in connection with mortgage loans entered into as of January 1, 2013.
Tax band and rates (for taxpayers under 65 / tax bands not yet adjusted for inflation):
|Tax band||Proposed rate|
|Up to EUR 19,645||37% (5.85% tax + 31.15% national insurance)|
|EUR 19,645 – EUR 33,363||42% (10.85% tax + 31.15% national insurance)|
|EUR 33,363 – EUR 55,991||42% (tax only)|
|Over EUR 55,991||52% (tax only)|