This year the Netherlands will celebrate Prince's Day (Prinsjesdag) on 20 September. Connoisseurs of ceremonies pay attention to the change in the location of His Majesty the King's Throne Speech and the replacement of the Golden Carriage with a glass one. However, entrepreneurs understand that Prince's Day is Budget Day, when the government shares plans for the coming year. Therefore, it is necessary to keep an eye out so as not to miss anything important!
Throne Speech and Budget Memorandum
This year, due to the reconstruction of the Binnenhof (Binnenhof), the Prince's Day will not take place in the Knight's Hall (Ridderzaal), but in the Royal Theater (Koninklijke Schouwburg) in The Hague. King Willem-Alexander will read the Throne Speech there, which symbolizes the beginning of a new working year. Although the restoration of the Golden Carriage has already been completed, this year the royal procession will not ride it due to social discussions. Instead, a glass carriage will be used.
After the Throne Speech Finance Minister Sigrid Kaag to present 2023 Budget Memorandum – review of the government's budget policy for the coming year. Previously, before the Budget Day, nothing was known about the content of the document. However, in recent years, most information leaks out long before its official announcement. This year, too, experts in the media are now, in the middle of summer, actively discussing the main provisions of the Budget Memorandum.
Why is Prinsjesdag important for entrepreneurs?
Changes for 2023 can have a positive or negative impact on your business. Changes in legislation and government measures will directly affect the financial position of your company. For example, you can use the information obtained from Prinsjesdag to determine whether to make certain investments in the current year or roll them over to the next year.
One week after Budget Day, general political discussions (Algemene Politieke Beschouwingen, APB), in which leaders of political groups in the House of Representatives discuss the Budget Memorandum and the national budget. APBs are important because they show whether plans can be implemented. Thus, the government can still adjust plans. Both the Senate (Eerste Kamer) and the House of Representatives (Tweede Kamer) must approve the budget by January 1, 2023.
What changes can be predicted now?
We have already reported on many government plans for 2023 in our articles. In particular, on Budget Day, they will probably announce:
- on phasing out tax deduction for the self-employed – the income tax deduction for self-employed persons will be reduced from 6 euros to 310 euros from 1 to 200 (six steps of 2023 euros and two steps of 2030 euros);
- about the introduction from 2025 new taxation scheme for Box 3based on real income such as interest, dividends and rental income, changes in the value of assets (transitional legislation will apply for 2023 and 2024);
- on the limitation of the 30% benefit (steering) for expats;
- о zero VAT rate for the purchase and installation of solar panels;
- on the reform of kinderopvangtoeslag and huurtoeslag - subsidies for childcare and rent;
- on the abolition of the deduction of interest on mortgage loans;
- on the abolition of the income tax averaging scheme (if income has fluctuated significantly over three years) from 2023. 2022-2024 is the latest period for which a three-year average can be used;
- on lowering the first bar of corporate tax (currently 15% for profits up to 395 euros) to 000 euros - as a result, more companies will pay tax at a rate of 200%.
