Yesterday September 16th, it was "Prinsjesdag" again! This time without a golden carriage for the king and in a different setting due to the special corona circumstances, but as every year with financial news for the upcoming year. What will the impact be on the finances for entrepreneurs?
In the "Financieel Dagblad" (the Dutch Financial Times) we can read a clear summary of the changes for 2021. Multinationals, large companies that do not invest, wealthy people and the self-employed will be subject to more severe taxation by the tax authorities in the coming years. But starters and people with a permanent job can count on a tax benefit!
Yesterday, Minister of Finance Wopke Hoekstra presented his 'robust budget' for the upcoming year. The government expects a budget deficit of more than € 43 billion next year, against € 56 billion this year. The measures with impact for you as an entrepreneur in an overview:
Increasing the exemption in box 3 (assets) to € 50,000 (€ 100,000 for tax partners) means that 'almost one million' of the three million people who still pay capital gains tax will no longer have to do so next year. That costs € 220 million, half of which is covered by an increase in the rate, for the remaining two million wealthy people, from 30% to 31%.
Self-employed person's allowance ("zelfstandigenaftrek")
The self-employed person's allowance will be further reduced to € 3,240 in 2036, from € 5,000 in 2028 previously.
Employed person's tax credit ("Arbeidskorting")
The reduction in the self-employed person's tax credit is set by an increase in the employed person's tax credit. As a result, the self-employed should not lose out on balance for the time being, while workers with a permanent job benefit more from it. The tax credit will be increased even more and the low tax rate will be reduced to 37.1%.
Purchasing power is still increasing on average despite the crisis, by 0.9%. The cabinet is taking into account the first systematic pension cuts next year. As a result, retired civil servants and care workers lose an average of 1 percentage point of purchasing power. Increasing the elderly person's allowance and the generic tax measures offer some compensation for this.
The cabinet wants to encourage targeted investments with a new tax deduction, for which € 4 billion will be available over the next two years. The plan, devised by the employers' lobby VNO-NCW, is being paid by companies themselves because the promised reduction in the high corporate tax rate is canceled.
Lower profits tax for SMEs
Lowering the low corporate tax rate from 16.5% to 15% will continue. The taxed profit ceiling will increase to € 245,000 next year and € 395,000 in 2022. That means € 1.3 billion in tax relief for small businesses with little profit in 2021 and almost € 2 billion in 2022.
Furthermore, State Secretary of Finance Hans Vijlbrief is sticking to his intention to make equity capital cheaper in corporate financing compared to loan capital. The D66 employee is now aiming for a capital allowance, possibly combined with a stricter limitation of the interest deduction.
Large companies are faced with a CO₂ tax. Companies that do not produce energy efficiently will have to pay for the emission of this greenhouse gas. As it looks now, the new tax will rise to € 125 per ton of excess CO₂ emitted in 2030. The levy will only really take effect in 2024.
Job-related investment discount
Details of the new 'job-related investment discount (BIK)' are still being worked out. But companies that invest can settle their tax deduction via the payroll tax. This stimulates employment in the Netherlands.