06/11/2025
REGULATORY AND TAX CHANGES FOR ENTREPRENEURS
As of January 1, 2026, a series of new laws, regulations, and tax changes will come into effect that will directly impact your business operations and financial planning. Early preparation is essential to remain compliant, avoid penalties, and take advantage of available incentives.
-Self-Employed Deduction: The deduction will decrease significantly from €2,470 (2025) to €1,200 (2026), resulting in higher taxable profits, particularly for businesses with higher earnings.
-Startup Deduction: Remains unchanged at €2,123. Eligible entrepreneurs can apply this deduction up to three times within the first five years of their business.
-SME Profit Exemption (MKB-Winstvrijstelling): Continues at 12.7% of profits after deducting the self-employed and startup deductions, regardless of hours worked.
-False Self-Employment & VBAR Act: The Tax Authorities may impose fines on arrangements that resemble an employment relationship. The proposed VBAR Act aims to provide clarity and may introduce a minimum freelancer rate of €36 per hour.
-Income Tax 2026: New tax brackets are:
Up to €38,883 → 35.70%
€38,883 – €79,137 → 37.56%
Above €79,137 → 49.50%
-Sustainability incentives & tax advantages:
-MIA & Vamil: Investment deductions of up to 45% and 75% for environmentally friendly business assets.
-Energy Investment Deduction (EIA): 40% of energy-saving investment costs can be deducted from taxable profits, in addition to standard depreciation. These measures support sustainable business practices and provide substantial fiscal benefits.
-Employment updates: Minimum wage increases to €14.71/hour (21+), tax-free homeworking allowance rises to €2.45/day, and adjustments are made to general tax credits and labor-related deductions.
-Cash payments exceeding €3,000 will be prohibited to combat money laundering.
-Cybersecurity laws (CRA & CBW) introduce stricter requirements for software, digital products, and IT systems, including mandatory security updates and incident reporting.