Tax Plan 2026: Is this all there is?

As we might have expected, the tax plans are very moderate. With an upcoming election process in sight, no shocking legislative proposals are being presented, only necessary improvements (to use Prime Minister Schoof's words). But that does not mean, of course, that we have nothing to report. On the contrary, as of 1 January 2026, a number of laws resulting from previous tax measures and plans will come into effect. To refresh your memory, here are the main points in brief:

• Transfer tax for rented properties (not owner-occupied properties) will be reduced from 10.4% to 8%. The increased rate of 10.4% will continue to apply to commercial property.

• The VAT rate on accommodation will be increased from 9% to 21%.

• The deadline for filing inheritance tax returns will be extended from 8 months to 20 months. Tax interest will only be payable after these 20 months have expired.

• Relaxation of the conditions for the business succession scheme, or BOR.

If we look at the content of the 2026 tax plan, we naturally see the usual annual shifts in rates, increases or decreases in tax brackets and the application of various tax credits. In other words, balancing the national budget. By tweaking a few things here and there, we are trying to tie up the loose ends (read: deficits). To avoid getting bogged down in details, we will limit ourselves to the main points. However, there are a number of notable issues worth mentioning:

Pseudo final levy on providing a car to an employee
As of 1 January 2027, in addition to the additional tax liability for private use of a car, employers will be required to pay a pseudo final levy of 12% on the catalogue value of a car provided to an employee. This situation therefore also applies to directors/major shareholders who drive a company car. This measure will not apply to zero-emission cars (i.e. fully electric cars). Nor will this measure affect entrepreneurs who drive a company car for income tax purposes (as they are not employees).

However, transitional legislation will be introduced stipulating that situations existing before 1 January 2027 may be maintained until 17 September 2030. After this date, the pseudo final levy will apply to all situations. The legislation is, of course, aimed at motivating employers to make their vehicle fleets more sustainable. What is strange about this, however, is that from 1 January 2026, the zero rates for private use of electric cars will be abolished and these will be brought into line with other cars, i.e. they will amount to 22%. It is therefore important to carefully consider the tax consequences when contracts expire or when offering a car to an employee.

Gifts made shortly before death
Gifts made within 180 days of death will no longer need to be declared twice. They will only need to be included in the inheritance tax return, and no longer separately in the gift tax return. This applies to gifts made from 180 days before 1 January 2026.

Box 3
It is noteworthy that the Tax Plan makes no mention of changes to Box 3, with the exception of announcing the rates and exemptions. The notional return on other assets is set at 7.78% for 2026, compared to 5.88% for 2025. This represents an increase of almost 2%. The tax-free allowance per taxpayer will decrease from €57,684 to €51,396 in 2026.

Wealthy individuals who do not have their money in ordinary savings accounts will feel the pinch in their wallets. Of course, they can invoke the Counter-Evidence Regulation Act. This simply means that if you can demonstrate that the actual return is lower than the notional return, you can invoke this Act.

Unfortunately, this law is so cumbersome that it will never lead to a successful action. Perhaps that is precisely what the legislator intended with this counter-evidence scheme.

Petrol duty
The temporary reduction in duty on unleaded petrol, diesel and LPG, which was originally valid until 31 December 2025, will be extended by one year until 31 December 2026. For the average Dutch person who lives a little further from the border, this is at least a windfall for 2026. Please note: the extension of this measure is expected to cost the state around 1.6 billion euros, which will have to be compensated for in some other way.

Culture, media and sport
The plan to increase the VAT rate to 21% has been reversed. The low rate of 9% will continue to apply to these sectors. To finance this, the inflation adjustment in income and payroll tax will be applied to a limited extent in 2026.

Other proposals

• The requirement to provide an income statement in advance for qualifying foreign taxpayers will be abolished.
• Transferring a home from parents to children will be subject to gift tax at the WOZ value, even if the market value is higher. The difference between the two values will not be considered a gift. This rule will be abolished on 1 January 2027.
• Reduction of tax benefits for green investors. In 2026, the exemption will be reduced to €200 per person and the additional tax credit will be only 0.1%. As of 1 January 2028, the tax benefits will be completely abolished.
• The additional tax liability scheme for bicycles provided by an employer or for income tax entrepreneurs will be adjusted retroactively to 1 January 2020, provided that it can be demonstrated that the bicycle is not or only occasionally (no more than 10%) parked at the home or residence address, in which case the additional tax liability will be set at zero.

We must make an important reservation regarding the above plans. After all, the Tax Plan will only be discussed in the new House of Representatives after the election recess. It is expected to be discussed in the House of Lords in December. The plans will only be finalised once both Houses have approved them. It is still uncertain who will take their seats in the new House of Representatives. Nor is it clear what their views on these plans will be.