Changes for entrepreneurs in 2021 (also for startups & scaleups!)

Less self-employed deduction

Just started a business? For years, the self-employed deduction was a fixed amount of 7,280 euros, which you could deduct from the profit for the first 3 years. For 2020, this had already been reduced to 7,030 euros and, as announced, this decrease will continue in the coming year. Newly-baked entrepreneurs can then only remove 6,670 euros from the profit. Ultimately, an amount of 3,240 euros will remain in 2036.

Lower corporate tax rate

The tax authorities will have a nice surprise for owners of a private limited company next year. The low corporate tax rate will decrease slightly, from 16.5 to 15 percent. And that is not the only advantage, the amount for which this low rate applies will increase. That was 200,000 euros, it will be 245,000 euros. In 2022, this will be further increased to 395,000 euros. The high rate will in any case remain idle for the coming year, at 25 percent.

Higher rate innovation box

Every entrepreneur who is working on a new technology in the Netherlands knows it: the innovation box. If you as a company make a profit with innovative activities, you will have to pay less corporate tax on this part of the profit. The rate was 7 percent so far, which will be increased to 9 percent in 2021. You can qualify for this tax benefit with a patent and via the WBSO scheme. By the way, your invention must fall into the category "flying cars" and "seaweed fishing nets", with just a cool app you will definitely be in the blue.

Job-related investment discount

Keep investing! That is what the government is saying to enterprising Netherlands with the Job-related Investment Discount (BIK). This will be introduced on January 1 and will apply retroactively to investments from October 1. With the BIK you as an entrepreneur can offset part of your investments against the payroll tax. Under certain conditions, of course. For an investment of up to 5 million, this is 3.9 percent. For the amount on top, a percentage of 1.8 percent applies. This corona crisis measure will apply until December 31, 2022.

Lower income requirement for employees of startups

There is good news for startups and scaleups who mainly fish for talent in international ponds. From 1 January it will be easier to obtain a residence permit for foreign personnel. Hick-up has always been the mandatory minimum salary of 4,500 euros (3,299 euros for employees up to 30 years old). This threshold often turned out to be too high for start-ups in particular. Now that the income requirement is being relaxed, young tech companies can more easily scout international talent. Thanks to the lobby of the Dutch Startup Association.

Extra business premises more heavily loaded

Anyone who buys a commercial building pays transfer tax. Just like a house, so. But if you buy a second building in 2021, the tax authorities will do a deeper dig in your wallet. The transfer tax for extra properties will go from 6 to 8 percent.

Lower deductions

The more deductions, the better. As an entrepreneur, you can keep your taxable profit nice and low. But in this regard, the government will tighten the reins just a little tighter in 2021. At the moment, a deduction percentage of 46 percent applies, but that will drop further to 43 percent. This decline will continue in 2022 until there is ultimately 37.05 percent left in 2023.

Higher Zvw percentage

We can be brief about this. The income-related contribution for the Health Insurance Act (Zwv) will increase in 2021, from 5.45 to 5.75 percent.