Prince's Day

Prince's Day

After his visit to Queen Elisabeth's funeral, King Willem-Alexander will have to head straight back to Noordeinde Palace, from where he will depart by carriage for the Hague City Theatre on the third Tuesday of September. There, due to the renovation of the Binnenhof, the King will deliver the Speech from the Throne, for the first time in the presence of Princess Amalia.

Plans from the Speech from the Throne

The Speech from the Throne, which includes the budget memorandum, includes the government's plans for the coming period. The plans, in short, are as follows.

• The government is proposing a €17 billion package, primarily to cushion the impact of the drop in purchasing power. This is more than double what was already spent this year.
• The minimum wage will increase by 10 percent starting January 1, 2023, a substantial increase. Social assistance and state pensions will also rise by that percentage.
• To reduce energy prices "as targeted as possible," the VAT reduction on energy will be withdrawn, but energy tax will be significantly reduced. Those with the lowest incomes will once again receive an energy supplement of €1,300.
• The government is imposing a price cap on the amounts energy suppliers may charge private individuals. This government protection will apply at least from November 1st to April 1st, 2023.
• The healthcare allowance will increase to a maximum of 412 euros in 2023, the rent allowance will increase, as will the child-related budget.
• Labor taxes are being reduced: the rate in the first bracket, for incomes up to approximately €70,000, will decrease. The labor tax credit, a tax credit for working people, will increase by €500 million.
• The grant for students living away from home will be increased in both 2023 and 2024.
• Business taxes are rising. Corporate tax will increase from 15 percent to 19 percent.
• The wealthy will face a heavier tax burden. Tax on savings, stocks, and second homes will increase from 31 percent to 34 percent, rising in three stages over the next three years.
• The tax-free allowance is set at €57,000, which was around €50,000. This way, small savers are spared.
• For many policyholders, health insurance premiums will likely increase by more than €10 per month in the coming year. This increase is primarily due to wage increases and other price increases in the healthcare sector.
• The tax energy companies pay, the mining levy, is going up. Energy companies are currently making huge profits due to the high prices.
• The government wants to phase out the self-employed tax deduction more quickly, as it had already planned. This is the fixed amount that can be deducted from profits. The government already wanted to get rid of it because it causes self-employed professionals to squeeze each other out of the market with low rates.
• The reduction in excise duty on petrol and diesel will continue until July 1, 2023. Since April of this year, we have already been paying 17 cents less for a liter of petrol and 11 cents less for a liter of diesel.
• So-called managing directors/majority shareholders (DGAs) will pay more tax. The government wants to abolish a scheme that allows DGAs to pay less tax on their income than employees with comparable salaries. This will generate €540 million for the government.

Crises

Our government must manage various crises. For example, the nitrogen crisis, the housing market crisis, and the energy crisis. That's truly a major challenge. It requires money. A great deal of money. Money that the government might be able to collect from you. Money that flows into the treasury through taxation and that, in the best-case scenario, can be used to avert the crises. And with which the government can balance the national budget.

Your own budget

But have you already balanced your own budget? Will you still be comfortable after the plans take effect? And how can you prevent those close to you—your significant other, your children, your parents, and other loved ones—from being left out in the cold?

Perhaps you'd be wise to restructure your businesses. Perhaps you'd like to establish a private limited company (BV) to protect yourself personally when financial difficulties arise. Or perhaps you'd like to gift some of your assets to your children under an exemption. Perhaps you'd like to quickly take advantage of the lower transfer tax rate. Or perhaps you'd like to refinance your mortgage before interest rates rise even further. Perhaps you'd like to avoid having to pay even more to the Treasury as part of your estate planning than you're already doing. We're happy to help you with all of this. Don't wait. Take action. Take control.

Reach out

Call us at +31 (0)10 44 53 777 or email service@maesnotarissen.nl with your specific question. Just as the government is trying to help the entire Dutch population, we also want to use our role and expertise to specifically support you with what needs to be done.