More tax changes from 1 January 2024 in brief

Box 2 and Box 3 Rates
The rate in Box 2 will be increased by a two-tier rate, with the top rate rising to 33% for incomes above €67,000 (€134,000 for tax partners). The rate in Box 3 will be increased to 36%.

SME profit exemption
The SME profit exemption will be reduced to 13.31%, a smaller decrease than originally proposed.

Income-related Combination Tax Credit (IACK)
The abolition of the IACK will be postponed until 2027, with a gradual phase-out starting from that date.

Business succession scheme
The low goingconcern value exemption rate in the business succession scheme within gift and inheritance tax will be reduced from 83% to 75% from 2025.

30% rule for Expats
The 30% rule will be scaled back, with a decreasing percentage of the lump-sum allowance over time.

Income tax Box 1
The rate of the lowest tax bracket rises slightly to 36.97%.

Health Insurance Act
Income-related contribution rate decreases by 0.11%.

Deductible expenses
Deductible expenses can be deducted at a rate of up to 49.50%, with some exceptions.

Reduction of Self-Employed Deduction
The self-employed deduction will be phased out.

Tax credits
A substantial increase in tax credits is planned.

Company tax
The bracket limit remains €200,000 with unchanged rates from 2023.

AOW age
The state pension age will be raised by two months to 67.