Important legal changes for business owners as of Jan. 1, 2025

As of Jan. 1, 2025, several legislative changes are in effect that directly affect business owners in the Netherlands. It is essential to be aware of these changes and the potential impact on your business operations. Below is an overview of the most important changes.

1. Increase in statutory minimum wage

The legal minimum wage has been increased as of January 1, 2025. For full-time employees aged 21 and older, the minimum wage is now €14.06 per hour. This adjustment directly affects employers’ payroll costs. It is therefore advisable to adjust your payroll in a timely manner and budget accordingly.

2. Abolition of low-income benefit (LIV).

The low-income benefit (LIV), an allowance for employers with employees earning between 100% and 125% of the minimum wage, will be abolished on January 1, 2025. This means that employers will no longer be able to claim this wage subsidy. It is important to evaluate the financial impact of this on your company and consider any measures to deal with this cost increase.

3. Introduction of bpm on vans with CO₂ emissions

From 2025, entrepreneurs will be required to pay passenger car and motorcycle tax (bpm) when purchasing a van with CO₂ emissions. The amount of the bpm depends on the vehicle’s CO₂ emissions; the higher the emissions, the higher the tax. For electric vans and other emission-free vehicles, the bpm exemption remains in effect. When replacing your fleet, consider the financial and environmental benefits of zero-emission vehicles.

4. Introduction of zero-emission zones by municipalities.

Municipalities will have the authority from 2025 to introduce zero-emission zones, areas where only zero-emission vans and trucks are allowed. Diesel and gasoline vehicles with an emission class lower than Euro 5 will no longer be allowed in these zones. This ban applies to Euro 5 vehicles from Jan. 1, 2027, and to Euro 6 from Jan. 1, 2028. Some vans are covered by a transitional arrangement until 2030. Check the emission class of your vehicles and anticipate these developments to avoid operational restrictions. For up-to-date information on this topic, visit the website doehetzero.nl

5. Reduction in SME profit exemption.

The SME profit exemption will be reduced from 13.31% to 12.7% in 2025. This exemption reduces the taxable income of SME entrepreneurs. A lower exemption results in a higher taxable income and thus a higher tax burden. It is advisable to adjust your financial planning accordingly and possibly seek tax advice to minimize the impact.

6. Stricter enforcement on false self-employment

As of January 1, 2025, the Tax and Customs Administration will step up enforcement on false self-employment. Companies that hire self-employed individuals for work that should actually be performed as employees risk additional taxes and fines. There is a transition period of one year during which no penalty fines will be imposed, provided it can be demonstrated that steps are taken to prevent false self-employment. Make sure the employment relationships within your company are clear and comply with the applicable laws and regulations to avoid penalties.

Reading Tip: Do you have a healthcare practice? Prepare for the new enforcement by the Tax Office

7. Adjustment self-employed deduction

The self-employed deduction will be further reduced to €2,470 in 2025. This deduction reduces the taxable income of self-employed entrepreneurs. A lower deduction means a higher taxable income and thus a higher tax burden. It is wise to adjust your financial planning accordingly and investigate whether you qualify for other tax breaks.

8. Mandatory in-service training for childcare workers.

Pedagogical staff in child care who work with infants (0-year-olds) are required to have completed specific in-service training from January 1, 2025. This also applies to substitute and temporary employees. Without this continuing education, they will not be allowed to work in a group with 0-year-olds. Employers in the childcare sector should provide timely training for their staff to meet these requirements.

More legislative changes to consider

– The Artificial Intelligence ACT, why does it matter to me?
– Renewed legislation for EU designs: what will change for you?
– The testimony of the party witness in the new law of evidence
– From January 1, 2025: Changes KOR and introduction of EU KOR

Questions?

The legislative changes described above have significant implications for entrepreneurs in various sectors. Do you have any questions regarding your specific situation? Our corporate lawyers have extensive experience in assisting entrepreneurs and shareholders. Please contact us for a no-obligation consultation. Together we will ensure that you can focus on what is really important: doing business.
For tailored advice, please contact one of our lawyers by email, phone or fill in the contact form for a no-obligation initial consultation. We are happy to think along with you.