The tax plans for 2021 approved by the First Chamber reflect additional measures to stimulate the economy, especially during the coronavirus crisis. At the same time, they outline the prospect for the post-crisis period, in connection with which the government continues to reform the tax system, taking measures to improve certain indicators and articles.
Most of these changes will take effect on January 1, 2021.
Below we will focus on the main ones.
Property transfer tax (Overdraftbelasting)
When purchasing a home in the Netherlands, you must pay оverdrachtbelasting - property transfer tax.
From January 1, 2021, its rate will be increased from 6% to 8%. The lower rate of 2% applies to homes under € 400.000 and you must reside in that home. When buying a holiday home or other investment property, the tax is set at 8%.
Good news for buyers under 35 who are purchasing their first home. From January 1, 2021, they are exempt from property transfer tax if they live in this house.
We have already written about these changes in more detail. here
Saving
For income from savings and investments (Box 3 of the Annual Declaration) in 2021, a higher non-taxable border was determined - it is 50 euros for each tax partner (in 000 this amount was 2020 euros). That is, two fiscal partners can have savings and investments of 30 euros, which are not taxable. As a result, the number of small depositors and investors paying tax on Box 846 will be reduced by almost 100.000 million people.
The rate in Box 3 will be slightly increased in 2021: from 30% to 31%.
Income tax
The income tax rate on income to 68 euros in 507 has been reduced from 2021% to 37,35%.
In addition, the tax credit for the elderly will be increased.
Climate tax
Unlike a car, bus or train, international flights are currently tax-free, but at the same time they make a significant contribution to environmental pollution. Therefore, from January 1, 2021, a tax on air passengers will be introduced. The airport will charge the airline tax for each passenger departing from the Netherlands airport.
CO tax will also come into effect2 for industry.
In addition, from January 1, 2021, the limits will be tightened and the rates on CO emissions will be increased.2 for cars.
Small and medium businesses (MKB)
It is planned that in the coming years, small companies will pay income tax at a lower rate. So, from 2021, the rate of 15% has been set for incomes up to 245.000 euros (in 2020, such a limit was 200.000 euros).
For individual entrepreneurs (EMZ/ZZP), the self-employment tax deduction is gradually decreasing – zelfstandigenaftrek... So, from January 1, 2021, this deduction has been reduced from 7.030 euros to 6.670 euros, which is 110 euros even more than originally planned in 2019, when such a decrease began. In the long term, by 2028, this deduction is planned to be reduced to 5.000 euros, and in 2036 it will be 3.240 euros.
This means that most of the income of an individual entrepreneur will be taxed. Thus, the Cabinet of Ministers wants to reduce the tax difference between EMZ / ZZP and employees.
Investment a discount for companies (Baangerelateerde Investeringskorting -BIK)
To stimulate investment during the crisis, the Cabinet of Ministers is proposing a new tax discount for companies - BIK - that want to invest, for example, in upgrading equipment. This is a temporary measure that applies to investments in 2021 and 2022.
The discount is possible for companies with hired employees. In the case of investments up to 5 million euros per year, the discount is 3,9%, over 5 million -1,8%. Companies can offset the investment rebate from payable tax payable.
This scheme has not yet been approved by the European Commission. If this approval is not obtained, the BIK interest rate may be increased.
Raising the tobacco tax
Cigarettes, smoking tobacco and cigars will rise in price in 2021. For example, from January 1, a pack of 20 cigarettes will become 12 cents more expensive, and a 50-gram pack of tobacco will rise in price by 30 cents.
Tightening Tax Evasion Measures
Interest and royalties tax comes into force in 2021: withholding tax is 25%, and payments to countries that do not levy or levy too low tax are taxed in the Netherlands.
From January 1, 2021, tax consultants, accountants and financial institutions are required to report to the tax authorities about cross-border agreements (tax schemes involving residents of different countries) that can potentially be used for tax evasion.
Transnational corporations will be taxed more equitably, taking into account the business climate.
Settlement of company losses will be limited from 2021.
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