Tax Budget 2021

Geplaatst op Friday September 25th, 2020

On 15^th September 2020 the Dutch government published its Tax Budget for 2021. This Budget contained various legislative bills and legislative amendments, some of which had already been announced.

In this newsletter Witscraft highlights the most important proposed tax changes relating to income tax and wage tax relevant for private persons and employers. We also address certain (proposed) legislation that is not included in the Tax Budget but is certainly relevant to be aware of.

Summary of proposed changes in the Dutch Budget for 2021

Topics covered in the Summary

 

 

1. Wage Tax
   a. Expansion of the ‘free space’ under the Work Costs Scheme (‘WKR’)
   b. Job-related investment incentive (‘BIK’)
   c. Transitional regime for life-course savings scheme
   d. Pensions: lump sums, Early Retirement Scheme (‘RVU’) and leave savings schemes
   e.One-off net bonus for healthcare personnel
   f. Amended treatment of share options for start-ups (not included in the 2021 Budget)

 

2. Income Tax
   a. Box I rate (work and home-ownership)
   b. Increase of general, labour levy, elderly rebate (‘algemene heffingskorting’, ‘arbeidskorting’ and ouderenkorting)
   c. Decrease of tax-free allowances for entrepreneurs (self-employed business owners or ‘ZZP’s)
   d. Reduction of deduction rate (based on Budget 2020)
   e. Box II rate  (substantial interest)
   f. Box III tax rate (private savings and investments)

 

3. Corporate income tax
   a. Tax rates
   b. Innovation box
   c. Corona reserve

 

4. Investments (Real Estate) “overdrachtsbelasting”

 

5. Various