Entrepreneurs engaging in Research & Development (R&D) activities, should consider establishing their operations in the Netherlands. The Netherlands offers several incentives that effectively reduce R&D costs, fueling entrepreneurship and fostering investments. These incentives, particularly the WBSO (Research and Development Promotion Act) and Innovation Box, play a crucial role in supporting innovative companies, enabling them to invest more and accelerate their development processes.

We would like to inform you regarding a new reporting obligation that will be implemented starting 1 July 2024. If your company employs at least 100 employees in the Netherlands, you will be required to track and report the total number of kilometers your employees travel for work-related purposes annually. This initiative is part of a government plan to monitor and eventually reduce CO2 emissions linked to business travel.

Effective January 1, 2025, the European Union (EU) is implementing a comprehensive overhaul of its Value Added Tax (VAT) scheme, with a primary focus on supporting small and medium-sized enterprises (SMEs) across all Member States. The new framework introduces key features aimed at standardizing VAT registration thresholds and extending benefits to non-resident EU businesses.

As we stepped into the new year, we would like to address several key financial considerations important for businesses involved in employment within the Netherlands. We are pleased to share with you the latest changes regarding the statutory minimum wage, transitional allowance, and salary criteria for highly skilled migrants, as well as modifications to the 30% ruling, all implemented as of January 1, 2024.