Happy New Year to all our readers. Thank you for your support. The New Year comes with changes in rules and regulations in many sectors, and we have tried to sum up the changes shortly and crisply.
Changes in the education sector
Use of mobile phones is no longer allowed in the classroom
From January 1, 2024, secondary school students will no longer be allowed to use their mobile phone, tablet or smartwatch in class. From the 2024-2025 school year, this also applies to primary school students. And for special primary education and secondary special education.
Supplementary grant
Students at higher professional education and university can receive a supplementary grant in 2024 if their parents earn up to approximately € 70,000. That was €53,900. This allows more students to receive a supplementary grant. For parents with more than 1 child, the income limit may be higher than € 70,000.
Changes affecting work and income
State pension age increases by 2 months
The state pension age will increase by 2 months as of January 1, 2024. This means that the state pension age will be 67. View the overview of the state pension ages for the coming years.
Travel allowance increased
From January 1, 2024, the tax-free kilometre allowance will increase from €0.21 to €0.23 per kilometre.
Basic income tax rate increases
The basic income tax rate will increase from 36.93% to 36.97% in 2024. This rate applies to incomes up to €75,518.
Build up a pension from the age of 18
From January 1, 2024, employees who work at a place with a pension scheme will already build up a pension when they are 18 years or older. In 2023, this was from the age of 21
Transition compensation upon dismissal
The amount of the transition payment if you are dismissed is a maximum of € 94,000 as of January 1, 2024. If your annual salary exceeds € 94,000, the compensation is the maximum gross annual salary.
30% ruling changes
The 30% ruling will change for expats from 2024. Expats need not pay tax on 30% of their income in the Netherlands during their first five years of living in the Netherlands. From January 1, 2024, the rules are:
- From months 1 to 20, expats do not pay tax on 30% of their income.
- From months 21 to 40, expats do not pay tax on 20% of their income.
- From months 41 to 60, expats do not pay tax on 10% of their income.
- Expats then pay tax on their entire income.
Care and health sector
Flavours have been banned on e-cigarettes since January 1, 2023, but e-cigarette manufacturers were allowed to sell their existing stock until January 1, 2024. So from now on, only tobacco flavour is allowed.
The government will introduce the Nutri-Score food choice logo on January 1, 2024. This logo makes it easier for consumers to choose products with a better composition. Companies are not obliged to put the logo on their products
Child benefit increased
Parents and caregivers of children up to and including 17 years of age receive child benefits (AKW). Child benefits will increase in 2024. The amounts from January 1, 2024 are:
- for a child aged 0 to 5 years: €279.49 per quarter;
- for a child aged 6 to 11 years: €339.38 per quarter;
for a child aged 12 to 17: €399.27 per quarter.
Combined surname possible for children
From January 1, 2024, you can give your first child the surnames of both parents if born on (or after) January 1, 2024. The combined surname also applies to all subsequent children of the same parents. From January 1, 2024, there will also be a transitional arrangement for children born on (or after) January 1, 2016. This option has been developed because of the increasing demand for it from society.
Changes in living environment and housing sector
Reporting points for undesirable behaviour when renting out
All municipalities will have a reporting point where you can report unwanted behaviour by landlords. For example, if your landlord discriminates against you or fails to fulfil obligations
National Mortgage Guarantee
Do you want to buy your house with the National Mortgage Guarantee (NHG)? From January 1, 2024, the NHG limit is €435,000. Are you investing in energy-saving facilities? Then, the NHG cost limit rises to a maximum of € 461,100.
Easier mortgage for singles
Singles with an income above € 28,000 can borrow an extra € 16,000 to buy a home
Increase in home value limit for starters
The home value limit to qualify for the starter exemption will increase from € 440,000 to € 510,000. Thanks to the starter exemption, home buyers between the ages of 18 and 35 do not pay a one-off transfer tax for the purchase of a home in which they will live for a longer period of time.
Self-employed person’s deduction continues to decrease
As of January 1, 2024, the self-employed person’s deduction will be further reduced from €5,030 to €3,750. The self-employed person’s deduction will be phased out more quickly to €900 in 2027. This will reduce the tax differences between self-employed people and employees
Introduction of two tax brackets in box 2
The tax rate on income from a substantial interest in box 2 will change in 2024. Until 2024, there is 1 rate in box 2 of 26.9%. From January 1, 2024, there will be 2 tax brackets in box 2. A tax rate of 24.5% will then apply to income up to €67,000. A tax rate of 33% applies to income above € 67,000
SME profit exemption reduced
The SME profit exemption will decrease from 14% to 13.31% in 2024. From 2025, the SME profit exemption will be 12.7%. As a result, entrepreneurs pay more tax on their profits
Maximum amount for borrowing from your own BV reduced
The maximum amount you can borrow tax-free from your BV will be €500,000 from January 1, 2024. This used to be €700,000. If the loan exceeds €500,000, this amount will be taxed as income in box 2.
Changes in the climate and energy sector
No more price ceiling for energy
From January 1, 2024, there will no longer be a maximum price for gas and electricity. The rates from your energy contract then apply again. You can conclude a fixed energy contract with many suppliers with prices below the price ceiling. A new maximum price applies every year for district heating. In 2024, that price will be lower than in 2023
Borrow extra to make your owner-occupied home more energy-efficient
Homeowners are allowed to borrow more money to make their homes more sustainable. How much money you can borrow depends on the energy label of the house. For example, for a house with label C or D, this amounts to € 15,000 extra. It doesn’t matter how long you’ve had the home
The air travel tax will increase from €26.43 to €29.05 per flight ticket on January 1, 2024.
Please let us know in the comments if you want to know more about other changes or a particular regulation in detail.
For Eindhoven News: Beena Arunraj
