Prinsjesdag is the day when the reigning monarch of the Netherlands stands before a joint meeting of the Senate and House of Representatives to give a speech outlining all the changes planned for the following year. It is on the third Tuesday of September that the government's new working year begins.
This year Prinsjesdag takes place in difficult conditions. The holiday program has been significantly adjusted, complying with safety requirements in the context of the coronavirus epidemic. The plans for 2021, which should be announced by the king, have undergone the same correction. Next year is expected to pass under the banner of support for the crown-stricken society.
Here are some of the changes expected to be heard.
Lower income tax rate
The Cabinet of Ministers is trying to support the purchasing power of low-wage workers by slightly lowering the income tax rate in the first segment and increasing the tax credit for workers. The rate in the first group will be slightly reduced to 37% (2020: 37,35%), the maximum income tax rate will remain 49,5%.
Housing transfer tax abolition for young people aged 18 to 35
To make the housing market more accessible to young people, home buyers between the ages of 18 and 35 get an exemption when they buy their own home for the first time. They are allowed not to pay the housing transfer tax for houses and apartments, which is now 2%. The tax on second homes, country houses and commercial premises remains unchanged.
Reduced tax burden for private depositors and small investors
Tax-free savings for depositors and small investors will increase to € 50 per person in 000. Thus, from 2021, partners will have tax-free capital of € 2021. The threshold for tax-free savings is now fixed at € 100000 per person. The increase in the tax-free surcharge gives a tax relief of approximately € 30 with a capital of € 846 per person.
Corporate tax: 15% up to € 400, top rate of 000% remains unchanged
The reduction in corporate tax to 21,7% in 2021, which was counted on until recently, is likely to be postponed to a later date. Corporate tax remains at 25%. At the same time, there is some positive news. Small and medium-sized companies are expected to pay 15% instead of 16,5% on profits up to € 400000.
Restriction on over-borrowing from own company
Cumulative debts incurred by shareholder directors in their company in excess of € 500 will be taxed as a contingent benefit of 000%. This requirement will not apply to home purchase arrears.
In addition, the government is actively working on the third package of economic assistance to companies affected by the coronavirus crisis.
From September 15, we will regularly write about what other innovations in legislation await us in 2021 and subsequent years.
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