Long-term deferral of tax in box 2 by lending of the own company is dealt with less far-reaching from 2023 than was originally intended. This is reflected in an amendment to the bill by the State Secretary of Finance, Marnix van Rij.

In short, the bill should prevent entrepreneurs from postponing or even ceasing tax in box 2 via their own company.

Increase limit amount
This means that in box 2 income tax will be levied on the substantial interest holder’s debts to his company. Initially, the proposal was to tax the additional amount above € 500,000 in debt to its own company. If the total of the substantial interest holder’s debts to his own company exceeds
€ 500,000, the excess amount will be taxed as a notional regular benefit.

The coalition parties agreed to increase this limit amount. The maximum amount that can be borrowed tax-free has been increased to € 700,000, this applies to the significant interest holder and his partner together.

More information
For more information on this subject, please visit our previous blog.