Tax Rates for Entrepreneurs in 2025

### Reduction of the top Box 2 tax rate

The government plans to reduce the top tax rate in Box 2 from 33% to 31% from 2025. Owners of substantial holdings will pay 31% profit tax if income from substantial holdings exceeds EUR 67,804. For Box 2 profit up to this amount, the rate remains 24.5%.

### SME profit exemption (MKB-winstvrijstelling)

The SME profit exemption (MKB-winstvrijstelling) will be reduced from 13.31% to 12.7%.

### Share buybacks without dividend tax preserved

The ability to buy back shares without paying dividend tax will be preserved. The government cancelled plans to abolish this from 1 January 2025.

### Interest deduction limit increases from 20% to 25%

The limit on interest deductions from corporate income tax increases from 20% to 25%.

### Changes to the 30% ruling

From 1 January 2027, the 30% ruling for expats will change. Compensation will decrease to 27% of taxable salary. The income norm will increase from EUR 46,107 to EUR 50,436. New rules will apply only to expats who arrived after 1 January 2024.

### Donations no longer deductible from corporate income tax

From 1 January 2025, companies will no longer be able to deduct charitable donations from corporate income tax. Donations will be considered profit distribution. However, sponsorship and advertising remain deductible. Individuals can continue to deduct donations.