As an entrepreneur with a BV (private limited company) structure, you may distribute yearly dividends from your BV. These distributions are subject to income tax in box 2. Starting from January 1, 2024, the tax rates in box 2 will change. What does this mean for you?
Change in box 2 taxation
Currently, there is a single rate in box 2 that applies to the entire amount of taxable income from substantial interest. For 2023, this rate is 26.9%. From 2024, this will change. As of 2024, there will be two brackets in the box 2 rate. There will be:
- a lower rate of 24.5% for income up to €67,000 per taxpayer (and €134,000 for fiscal partners), and;
- a rate of 33% for income above this threshold.
It's worth noting that these rates will apply not only to dividend distributions but also to other box 2 income, such as profits from the sale of shares in the BV.
Why is the box 2 regime changing?
The introduction of two brackets in box 2 and the base rate of 24.5% is aimed at encouraging the annual distribution of (a portion of) the BV's profits in the form of dividends.
Take advantage of the rate differences
The rate differences allow for some tax planning. Waiting until 2024 to make smaller dividend distributions can result in lower taxes on the distribution. Larger distributions or capital gains from the sale of shares might be better brought forward to avoid the high rate that will apply next year.
What is the best course of action for you now?
In light of the changes in the box 2 tax rates, it may be advantageous to either accelerate or postpone dividend distributions from your BV. We would be happy to help you plan your box 2 income for the coming years. Together, we can determine the best way to minimize the tax liability associated with it. Do you have questions about the changes in box 2 tax rates?
Please contact one of our specialists
