Summary – Budget 2020

Geplaatst op Wednesday September 25th, 2019

TAX Budget 2020

On 17 September 2019 the Dutch government published its Tax Budget for 2020. This Budget contained various legislative bills and a large number of legislative amendments, some of which had already been announced.

In this newsletter Witscraft we highlight  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.

 WAB

In addition to the Tax Bills, we take the opportunity to provide some details on the legislation in respect to Wet Arbeidsmarkt in balans (“WAB”). This legislation will enter into force on January 1, 2020. The WAB has an impact on many types of employment contracts. The main principle of the WAB is to make it more attractive for employers to hire employees on a permanent basis by reducing the gap between permanent contracts and flexible employment. The WAB contains a number of important legislative changes in relation to flexible employment, dismissal law, the transition allowance, pay rolling and on-call contracts. All Dutch employers are affected by the above changes and should therefore take action to become compliant.

 

For more information we refer to the newsletter:  Summary Budget 2020 – The Netherlands

Topics covered in the Summary

Personal income tax

• Rates and tax credit;
• Private dwelling and mortgage interest;
• Levy rebate and self-employed persons’ allowance
• Cancelation of the education facility;
• No voluntary disclosure for box 2 and box 3 income;
• Continuation of the transitional rules for annuities predating 2001;
• Box 3 taxation of savings (not included in the 2020 Budget).

 

Wage tax

• Free space under the work costs scheme;
• Work costs scheme tweaks;
• Fiscal addition to income for environmentally friendly cars;
• Application procedure for the R&D withholding tax credit;
• Insurance tax exemption for self-insurers;
• Indexation of the volunteer scheme;
• No final levy for administrative penalties;
• Definition of permanent establishment;
• Amended treatment of share options for start-ups (not included in the 2020 Budget);
• Company bicycle (not included in the 2020 Budget);
• Labour Market Balance Act (WAB, not included in the 2020 Budget).

 

Please feel free to contact us for any advice or further questions in respect of the above.