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  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/19/2012

The Netherlands - Proposals for individual tax reform 

October 19: The Van Dijkhuizen Committee—a committee established to examine the Dutch individual (personal) income tax and allowances as part of an investiation for a simplified tax system—published its interim report “Energizing the tax system” (Naar een activerende belastingstelsel).

The committee’s proposed reforms of the tax system include:


  • Replacing the current four individaul income tax rates with two tax rates—37% for income up to €62,000, and 49% for incomes above this amount
  • Limiting the mortgage interest deduction for both new and current home owners
  • Providing that interest on any remaining home debt would remain deductible for 12 more years
  • Repealing the real estate transfer tax for homes
  • Increasing the general and the reduced value added tax (VAT) rates by 2%
  • Gradually increasing the tax rate for pensioners that receive more than the minimum state pension, until it is in line with the tax rate for non-pensioners
  • Repealing the self-employment deduction and the business start-up deduction

The Van Dijkhuizen Committee’s final report will be published at the beginning of 2013, is expected to address streamlining the tax credits and allowances into one integrated household allowance as well as the taxation of income in Box 2 (substantial interest) and Box 3 (savings and investments).


Read an October 2012 report prepared by the KPMG member firm in the Netherlands: Committee Van Dijkhuizen publishes interim report on proposals to reform the tax system



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