Tax Plan 2025
The Cabinet announced the 2025 Tax Plan during Budget Day on Sept. 17. Below are the changes: Lowering rate in box 2 In the 2024 tax plan, the flat-tax rate was changed to two brackets. The basic rate was reduced to 24.5%, but from €67,000 a director-major shareholder pays the high rate of 33%. As a result, the current tax rate on Box 2 income is a maximum of 50.29%. This is higher than that for employees at 49.5% and certainly higher than that for the IB entrepreneur, when you also take into account the SME profit exemption and the self-employed deduction. With the reduction to 31% from €67,804, this is (partly) corrected.
