Dutch Tax Plan 2027: what does it mean for your business?

Submitted does not mean enacted

The House of Representatives and Senate still need to consider the bills. Amounts, conditions and effective dates may change. Use the proposals to review your budget and decisions. Change returns or invoices only on the basis of the rules applicable to the relevant period.

Additional start-up deduction almost disappears in 2027

The government proposes reducing the additional start-up deduction, known as startersaftrek, from € 2,123 to € 10 in 2027 and abolishing it in 2028. The proposal contains no transitional protection for people who have already started their business. The existing deduction remains available for 2026 subject to its usual conditions.

If your budget assumes this deduction, have the effect on your net income calculated. A higher aggregate income may also affect means-tested benefits.

Older company cars: a different proposed age threshold

Existing legislation raises the youngtimer age threshold to 25 years from 2027. The new proposal would replace that step with 17 years in 2027 and 20 years from 2028. Transitional rules are proposed for certain existing users.

That relaxation is not yet final. Before deciding to sell or replace your car, review its first-use date, your history of using it and the effect on the taxable private-use benefit.

Mileage: € 0.25 can already be used in 2026

The package puts the increase from € 0.23 to € 0.25 per kilometre into legislation, retrospectively from 1 January 2026. Early application has already been approved. Employers can therefore already pay the higher allowance tax-free subject to the conditions; the higher deduction also applies to business mileage using private transport for income-tax entrepreneurs.

Check your mileage records and how the amount is processed in your accounts. This is a tax ceiling; employers are not automatically required to reimburse more.

Innovation box: a higher flat-rate ceiling

For companies meeting the innovation-box conditions, the government proposes increasing the maximum flat-rate amount from € 25,000 to € 100,000 for financial years beginning on or after 1 January 2027. This simplified calculation can allocate part of the profit to the innovation box.

It is not a general € 100,000 deduction. First establish whether your internally developed innovation qualifies and whether this calculation method suits your company.

VAT on ornamental plants and balloon flights: a 2028 proposal

The government proposes raising VAT on ornamental horticulture products, including flowers and plants, and on balloon flights from 9% to 21% on 1 January 2028. This proposal does not change the rate for supplies you make now.

If you operate in these sectors, identify long-term price agreements, advance payments and bookings for 2028. That will help you assess the impact once the final rules are known.

Which decisions deserve attention now?

Bring your expected profits, investment plans, company car and relevant contracts together in one overview. Valorem can help identify which proposals affect your business and which calculations are useful. Describe your situation and the decision you are considering below.