Budget Day 2021
Where does the name Prinsjesdag actually come from? Prinsjesdag was already used in the 17th and 18th centuries to celebrate the birthdays of the Princes of Orange. The first Prince's Day in the sense in which we know it today took place on May 2, 1814, more than 207 years ago.
Today, Budget Day takes place on the third Tuesday of September, and on the same day (for the following year) the Millionaires' Budget, the State Budget and the Tax Plan are presented.
Given that we are currently dealing with a caretaker cabinet, there can be no big plans. In addition, the cabinet has already taken many support measures over the past 2 years through Corona. Both issues provide little fiscal sensation.
I selected 4 topics from the 2022 Tax Plan about which there is something interesting to say (and which concern many in my network):
Corporate income tax (rate).
The limit of the first bracket in corporate income tax is increased. The rates remain the same. In 2022, the limit is € 395,000. This year (2021) it is € 245,000. The rate structure will be as follows:
- € 0.- to € 395,000.- > 15%
- From 395,000 euros > 25%
Adjustment box 3 (unfortunately minimal)
Effective January 1, 2022, the tax-free capital in box 3 will increase to €50,650. This year (2021) it is €50,000. The rates will remain unchanged, the bracket limits will be adjusted slightly:
- 1st bracket: €0.00 to €50,650.00 > 1.82% fixed rate of return
- 2nd bracket: €50,650,- to €962,350,- > 4.37% fixed rate of return
- 3rd bracket: from €962,350 onwards > 5.53% flat rate of return
The future of box 3 is still uncertain. Currently, the taxation of assets in Box 3 takes place on the basis of a fixed return in three asset classes. The Lower House wants to tax the actual return achieved instead of the fixed return, but this does not yet seem possible for the Tax Administration. It is up to the new cabinet whether the taxation of box 3 assets will change in the future.
Excessive borrowing bill
This bill has been talked about since 2018; by the end of 2023, it really seems to be here. DGAs will have to pay tax on excessive borrowing. From that moment, a DGA together with his partner may borrow up to € 500,000,- untaxed from his own BV, partners thus have a joint threshold. This measure also applies to debts to related persons. By the way, financing for one's own home does not count (which is favorable).
What does this mean? On the excess that is borrowed, the DMS must pay substantial interest tax (box 2). This levy is currently 26.9%. Thus, the excess is taxed as a dividend distribution.
Tax addition for emission-free cars
The discount over the additional taxable benefit for emission-free cars will be set at 6%, thus making the additional tax rate 16%. The discount is 10% this year (2021). The plan is to keep the planned 6% discount until 2026. In addition, the plan is also to lower the maximum list price over which this lower addition rate applies to € 35,000 in 2022 and to € 30,000 for the years thereafter. The maximum list price this year (2021) is € 40,000.
Following up on this blog, I am writing a blog with year-end tips in October.
Would you like to know more about the above topics, our company or are you interested in our services? I would love to get in touch with you.
Senna Hansen
senna.hansen@kuipersclaassen.nl
