EMPLOYER
Free space 2020 goes up
For 2020, the scope for the work-related costs scheme (WKR) will be increased retroactively from 1.7% to 3% for the first € 400,000 of fiscal wages.
From 1 January 2021, the free allowance over the amount of wages above € 400,000, will be reduced from 1.2% to 1.18%.
Training costs ex-employee also exempted
As of 1 January 2021, an employer may in principle reimburse the training costs of a former employee, without this employee having to pay income tax on this. It will then no longer matter whether the work is current or past. The training or study must be followed for a future profession and must not concern the maintenance and improvement of knowledge and skills in order to fulfil the employment relationship or for personal reasons, such as a hobby.
This training expense allowance may not exceed by more than 30% the training expense allowance granted by the employer in comparable cases.
Adjustments to the state pension age
The state pension age will remain 66 years and 4 months in 2021. Thereafter, the state pension age will rise annually, until 67 years in 2024.
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