This year their Throne Speech on Day Prince (Prinsjesdag) His Majesty will read in the Theater (Koninklijke Schouwburg) and not in the Knight's Hall (Ridderzaal). But entrepreneurs are more interested than traditions in tax changes for the coming year, which can be found out on Budget Day. The Nalog.nl team is ready to satisfy the curiosity of business representatives a little. We have prepared TOP-9 changes for entrepreneurs that are already known.
- Removing the Old Age Tax Reserve (FOR)
Now, if an entrepreneur meets certain criteria, he can take advantage of a tax deduction - the so-called old age reserve (FOR). This deduction is available if the entrepreneur: 1) has not yet reached the state pension age (AOW-gerechtigde leeftijd) at the beginning of the calendar year; 2) meets the "hour criterion" - more about this in our article; 3) has sufficient capital/assets (ondernemingsvermogen).
The government wants to abolish FOR: the FOR tax deduction will be canceled from January 1, 2023. At the same time, the entrepreneur will still be able to use the FOR that he has accumulated up to this date.
- Another milestone on the way to abolishing the self-employed (EMZ/ZZP) deduction
The self-employment tax deduction (zelfstandigenaftrek) will continue to decrease, as we have already wrote, and the tax plan for 2023 will further accelerate the reduction of the deductible. In 2022, the zelfstandigenaftrek is 6310 euros, which is 360 euros less than last year. Going forward, the government intends to phase out the €650 in six phases starting in 2023. After that, the decline will continue in two stages - from 605 euros to 1200 euros in 2030.
- Cancellation of income tax averaging scheme
Now an entrepreneur can apply the income tax averaging scheme if the amount of his profit fluctuates greatly over three years. However, the government wants to cancel this scheme from January 1, 2023. Thus, the last period available for averaging will consist of 2022, 2023 and 2024.
- Introduction of the progressive bet in Boxing 2
Box 2 is included in the income tax structure in the Netherlands (more on this in our material). While Box 2 has a flat tax rate of 2022% in 26,9, income with “substantial interest” (aanmerkelijk belang, AB) will be taxed from 2024 at a progressive rate. Income from AB up to and including 67.000 euros will be taxed at a rate of 26%, above - at a rate of 29,5%.
As a reminder, a “substantial interest” arises when you (on your own or together with your tax partner) directly or indirectly own at least 5% of: shares, certificates of participation in profits, rights of use or stock options in a domestic or foreign company.
- cancellation general tax allowance (algemene heffingskorting) for high total returns
Maximum amount total tax credit in 2022 is 2888 euros. If the income from work and household (Box 1) is more than 21.317 euros, then 6,007% is deducted. According to this scheme it becomes equal zero for income in Box 1 in the amount of 69.398 euros. However total tax credit is never a negative sum. The tax plan for 2023 contains measures that make the total tax credit of the dependent from total income. This means that income from Boxes 2 and 3 will also be taken into account.
- Phase-out of the income-related combined tax credit (inkomensafhankelijke combinatiekorting, IACK)
Under certain conditions, an entrepreneur is entitled to an income-related combined income tax credit (IB - inkomstenbelasting) (IACK).
As a reminder, the parent of a child under 12 years of age is eligible for a combined income-related discount if they are employed. The amount of the discount depends on income.
The abolition of IACK from January 1, 2025 was discussed in the coalition agreement of the government. But this cancellation will happen gradually. In addition, the right to IACK will remain with parents whose children were born before 2025.
- Reducing the amount of income for the first category for the payment of corporate tax
The corporate tax rate is now 15% for the first €395.000 of taxable income and 25,8% for the remaining income. The legislator wants to reduce this first bar to 200.000 euros from January 1, 2023.
- Nitrous oxide supplies will be subject to VAT at the normal rate
1 June 2021 year trial court Arnhem-Leeuwarden ruled that supplies of nitrous oxide cartridges used in whipped cream aerosols are subject to a reduced VAT rate.
Since nitrous oxide ("laughing gas") is also used as an intoxicant, the government wants its supplies to always be taxed at the regular rate. The tax plan for 2023 will contain relevant measures.
- Zero VAT rate for solar panels
EU Member States are allowed to apply a zero VAT rate on the purchase and installation of solar panels. The government wants to take advantage of this opportunity. The motivation is as follows: when installing solar panels, individuals will no longer need to request a VAT refund, as is the case now.
As a reminder, a VAT rate of 21% is currently applied to the purchase and installation of solar panels by private homeowners. Solar panel owners can fully or partially refund VAT by registering and submitting a declaration. From the point of view of taxation, they are treated as private entrepreneurs who supply electricity to energy companies for a fee.
From 2023, the Dutch will no longer have to go through all this, solar panels can be installed without VAT obligations. Read more about the abolition of VAT on solar panels in our review.
Publication Date: 09.09.2022
