Dutch Budget Day 2026: Key Tax Changes for 2027

The proposals cover corporate taxation, dividend withholding tax, personal income tax, payroll taxes, VAT, real estate transfer tax and Pillar Two minimum taxation. Key developments include changes to the participation exemption for foreign currency hedging instruments, expanded incentives under the Innovation Box regime, an increase in the Energy Investment Allowance (EIA), revisions to the Dutch expat regime, new tax incentives for startups and scale-ups, and further updates to the Pillar Two safe harbour framework.

The package also contains measures affecting investors and employers, including a proposed reduction in real estate transfer tax for certain residential investment properties, changes to the work related costs scheme (WKR), a new legal presumption for lower paid freelancers, and adjustments to dividend withholding tax rules for Dutch investors using foreign investment funds.

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