2026 Tax Plan adopted by the House of Representatives

Deferral of multiplier for Box 2 income from lucrative interest

Upon request, the benefits from an indirectly held lucrative interest may be taxed in Box 2 (substantial interest) instead of in Box 1 (result from other activities). This is subject to the condition that at least 95% of the lucrative interest benefits received in a calendar year are distributed as income from substantial interest. The government had proposed to use a multiplier to increase the effective tax burden on the relevant benefits up to a maximum of 36%, as of 1 January 2026. The House of Representatives, though, is concerned about its effects on the Dutch business climate. It has therefore adopted an amendment postponing the entry into force of the measure until 1 January 2028. It will be covered financially by increasing the contribution to the Invalidity Insurance Fund (Aof-premie) by 0.02 percentage points in 2026 and 2027.

Reversal of increase in the tax and social insurance contributions in Box 3

The 2026 Tax Plan proposed increasing the fixed rate of return on other assets in 2026 and 2027 (2026: 7.78%) and lowering the tax-free wealth threshold (2026: EUR 51,396). The goal was to cover for the budgetary loss resulting from delaying the introduction of the Box 3 Actual Return Act (until 1 January 2028). However, since the House of Representatives foiled this through an amendment, the fixed rate of return on other assets will be 6% in 2026, while the tax-free wealth threshold (after indexation) will be EUR 59,357. This amendment will be covered financially through an accelerated phase-out of the reduction for the absence of or a low owner-occupied home debt (the so-called Hillen reduction) by 4.8% per year (previously 3.33%).

Restriction of EIA/MIA reduction to business profits

Specifically for personal income tax purposes, the reduction of the energy-saving investment credit (energie-investeringsaftrek, or ‘EIA’) and environmental investment credit (milieu-investeringsaftrek, or ‘MIA’) in a year is limited to the available business profits. The unrealised portion of the reduction will be assessed through a decision open to appeal. Subsequently, it can be offset in the following nine calendar years to the extent that the profit exceeds the EIA and MIA in those years. The background to this measure is to combat so-called base loan schemes for personal income tax purposes. This is why the measure is not extended to corporate income tax.  

Discount on additional tax liability for private use of electric cars

The general percentage of the catalogue value to be added to one’s income for the private use of a company car is 22% of the catalogue value on an annual basis. However, for electric cars, a 5% discount will still apply in 2025, capped at EUR 1,500. The additional tax liability thus arrives at 17% for a catalogue value of EUR 30,000. Although this discount was to be abolished immediately in 2026, on the back of an amendment adopted by the House of Representatives a more gradual phase-out has now been opted for. Hence, for electric cars purchased in 2026 and 2027, a discount of 4 percentage points (2026) and 2 percentage points (2027), respectively, will be applied, capped at EUR 1,200 (2026) and EUR 600 (2027), respectively. This will bring the additional tax liability to 18% in 2026 and 20% in 2027, at any rate to a catalogue value of EUR 30,000. The regular additional tax liability of 22% will subsequently apply to the excess amount. The decisive factor is the date of the car’s first registration on the road. The discount applicable at that time can then be applied for a maximum of 60 months. From 2028 onwards, no discount will apply to cars purchased.

This will be covered financially by tightening the so-called ‘youngtimer scheme’. In 2025, cars that were first registered more than 15 years ago will be subject to an additional tax liability of 35%, but calculated over the market value. In 2026, this age limit will rise to 16 years and even to 25 years in 2027.

Extension of bracket limit for R&D tax credit (WBSO)

Since 1 January 2025, the percentage of the R&D tax credit has been 36% up to a base amount of EUR 380,000. The percentage is 16% for excess amounts. The House of Representatives has adopted an amendment for a one-time indexation of the bracket limit by 2.9% as of 1 January 2026, bringing it to EUR 391,020. The indexation will be covered by a surplus on the budget available for the R&D tax credit (WBSO), realised in 2024.  

Extension of transitional law for mutual funds

In the other tax measures for 2026, an amendment was adopted by the House of Representatives that provides for an extension of the transitional law in the Mutual Funds and Exempt Investment Institutions (Amended Regimes) Act. As a result, mutual funds established on or after 1 January 2025 will also be able to use the transitional regime. Hence, until the introduction of new regulations, they can opt not to be classified as a mutual fund (or a comparable entity). The entity’s assets and debts, as well as its income and costs, will then be allocated to the participants. For funds established before 1 January 2026, however, all participants must agree to the choice not to be classified as a mutual fund.

Motion on minimum taxation (Pillar 2)

The House of Representatives has passed a motion expressing concern about the current fragmented global implementation of minimum taxation (Pillar 2) creating an uneven playing field for European and Dutch companies. Thus, when engaging in international negotiations the government is called upon to make a strong case for (1) a level playing field and preservation of the competitiveness of European and Dutch companies, (2) a significant reduction in the regulatory and administrative burden, such as through a permanent ‘safe harbour’ for companies with a high consolidated effective tax burden, and (3) room for targeted and effective tax facilities for strategic sectors with substantial real economic activity.

Fuel duty reduction

The temporary reduction in excise duty on unleaded petrol, diesel and LPG was due to end on 1 January 2026, but the 2026 Tax Plan extends it for another year until 31 December 2026. An amendment adopted by the House of Representatives does limit the amount of this reduction, though. This means excise duty rates will increase on 1 January 2026 (petrol: approx. 5.5 cents per litre; diesel: approx. 3.6 cents per litre; LPG: approx. 1.3 cents per litre). The budgetary revenue (EUR 448 million) will be used to prevent cuts in public transport.

Differentiation of air passenger tax

The 2026 Tax Plan provides for a differentiation of the air passenger tax rate based on flight distance, from 2027 onwards. It distinguishes between short flights (category A: up to approximately 2,000 km), medium-haul flights (category B: up to approximately 5,500 km) and long-haul flights (category C: more than 5,500 km). The rate varies from EUR 29.40 (category A) to EUR 70.86 (category C). However, the House of Representatives has adopted an amendment as a result of which, from 1 January 2030, much higher rates will apply to private aircraft (defined as aircraft with 19 seats or fewer), ranging from EUR 420 per flight (category A) to EUR 2,100 (category C).