Year-end tips 2025
We have selected the most relevant year-end tips for 2025. Would you like a complete overview? Please send me a personal email. You will then receive a PDF containing all year-end tips from the Register of Tax Advisers.
Despite our selection, it has still become quite a substantial list — hopefully, you can use it to your advantage!
The year-end tips at a glance
-
- Annuity deduction (30%)
- Annuity deduction in combination with, among others, childcare allowance
- Small-scale investment allowance (KIA)
- Income tax averaging
- Utilize your partner’s general tax credit
- Utilize the remaining tax-free space in the WKR
- Anticipate extra levies for non-electric cars
- Make use of gift tax exemptions
- Submit your WBSO application on time
- Statement of actual return (OWR)
- Check your current account position and consider a dividend distribution
Hopefully, you can use it to your advantage!!
1. Annuity deduction (30%)
The possibilities for annuity deduction (supplement to pension) have increased significantly in recent years. In 2025, you can also deduct 30% of your income above the AOW franchise (€18,475). This is your annual margin. In addition, you can utilize the reservation margin: the unused annual margins from the past 10 years, up to a maximum of €42,108.
Calculation can be done via the Tax Administration’s tool:
Please note:
• Money that you deposit into an annuity product is fixed until your AOW age. Therefore, only do this with money that you can actually afford to be without for that long.
• You usually deduct it at a high rate, while it is taxed later at a lower AOW rate (e.g., 17.92% up to €38,441).
• You benefit from tax deferral, allowing you to build up more.
• Ensure that you make the deposit by 2025-12-31 at the latest.
There are two types: bank annuity (most commonly used) and insured annuity.
2. Annuity deduction in combination with childcare allowance
Do you have young children and do you pay for childcare? Then annuity deduction can be extra beneficial. You reduce your assessment income with this, which may result in you receiving more childcare allowance.
Check your personal situation via:
3. Small-scale investment allowance (KIA)
Are you about to make business investments (laptop, phone, electric bicycle, etc.)? Then it may pay to determine whether you do that in 2025 or better in 2026.
Important:
• For investments above €2,900 per year, you receive 28% KIA on the entire amount.
• Example: if you invest €3,000, you can deduct an additional €840.
• An investment must be above €450 per item.
Are you just below the threshold this year? Then it might be smart to wait until the beginning of 2026 so that you bundle investments and still receive the KIA.
4. Income tax averaging
The averaging scheme helps with significant income fluctuations over three consecutive years. Although the scheme was abolished as of January 1, 2023, you may still average over 2022, 2023, and 2024, provided all years have been definitively established.
More info:
If you are a client of ours, we can easily calculate for you whether averaging is useful.
5. Utilize your partner’s general tax credit
Does your tax partner have no income and was he/she born after 1962-12-31? Then this partner does not automatically receive the general tax credit (€3,068 in 2025).
Solutions:
• Do you have Box 3 assets? Then you can attribute (part of) this return to your partner.
• Do you have a BV? Then you can make a dividend distribution of €12,522. You pay 24.5% tax on that (= €3,068), which you get back via the tax credit.
Do this by 2025-12-31 at the latest and always coordinate it with your tax adviser.
6. Utilize the tax-free space in the WKR
In December, you will receive an overview of your work-related costs scheme (WKR) from us. If there is still tax-free space, you can use it for tax-free reimbursements.
7. Anticipate extra levies for non-electric cars
From 2027, a pseudo-final levy of 12% will likely be introduced on the list price of fossil-fuel (including hybrid) cars provided by employers that may be used privately.
Tip:
Are you planning to purchase a business non-electric car? Do this before 2027 to avoid the extra levy.
8. Use the gift tax exemptions
For gifts to children, the following apply in 2025:
• Annual exemption: €6,713
• One-time increased exemption: €32,195 (for children aged 18 to 39) or
• One-time high gift tax exemption for expensive studies: €67,064
Use in 2025 = actually deposit before 2025-12-31 and also check the conditions for the one-time gifts carefully!
9. Submit your WBSO application on time
With the WBSO, employers receive a tax allowance for innovation costs.
Important:
• Apply for the WBSO in advance via RVO (www.rvo.nl).
• For WBSO over 2025, you must report the realization before March 31, 2026.
• Application for the first period of 2026 must be in before December 20, 2025.
10. Statement of actual return (OWR)
Since the Christmas ruling of December 24, 2021, much has changed regarding Box 3. If your actual return is lower than the flat-rate return, you can get back the excess tax paid via the OWR.
More info:
After receiving the letter from the tax authorities, you usually have 3 months to fill it in. If you are too late, this option expires for that year.
11. Check your current account position and consider a dividend distribution
Under the Excessive Borrowing Act, you may borrow up to €500,000 from your own BV. But:
• In the event of liquidation or uncollectibility, you must pay 24.5%–31% tax on the outstanding amount.
• If you do not have the money then, a major problem arises.
• If your BV receives a claim, your current account position is a normal receivable and you can therefore be held personally liable with far-reaching consequences.
• And in addition, you pay interest on this current account and that is a waste.
That is why we check this every year and advise distributing dividends in a timely manner if necessary. This prevents risks and limits the tax burden.
Please note: dividend distributions must take place by 2025-12-31 at the latest.
Disclaimer
Although the utmost care has been taken in the compilation of this blog, no liability is accepted for omissions or inaccuracies. This blog is for informational purposes only and no rights can be derived from its content. For application in individual cases, we recommend that you contact us.