Fiscal proposals from the coalition agreement

The fixed footing in the income-dependent combination discount goes to EUR 0. The accrual percentage is increased.
• The transferability of the income-dependent combination discount and the labour discount is gradually being phased out.

The transferability of the income-dependent combination discount and the labour discount is being phased out.

• The right to labour discount and income-dependent combination discount for ZW benefits of those entitled to benefits without employment is abolished.
• The self-employed persons deduction will be reduced from 2020 in annual steps of 3% to the basic rate.
• The owner-occupied housing allowance will be reduced from 2020.

Mortgage interest relief will be reduced from 2020 in annual steps of 3% to the base rate.

• The tax deduction for training costs will be replaced by an individual learning account for all Dutch nationals who have obtained a starting qualification.
• Box 2 rate goes to 27.3% in 2020 and 28.5% in 2021.
• In box 3, the actual return on savings is connected more quickly. The tax-free capital is increased to EUR 30,000 per person. A system of capital yield tax based on the actual return is worked out.

The DBA Act will be replaced. The new law must, on the one hand, provide certainty that there is no employment relationship and, on the other hand, prevent false self-employment. For self-employed persons it is determined that there is an employment contract at a low rate in combination with a long duration of the agreement or a low rate in combination with the performance of regular business activities. There will be an ‘opt-out’ for wage tax and worker-employee insurances for the top end of the market. This applies to a high rate in combination with a shorter duration of the contract or a high rate in combination with not carrying out regular business activities. For self-employed persons above the ‘low’ rate, a client declaration will be introduced that must provide clarity and certainty in advance. To this end, a web module must be completed. From now on, the relationship of authority will be tested more on the basis of material rather than formal circumstances. The current enforcement moratorium will be phased out.

The untaxed volunteer allowance goes up from EUR 1.500 to EUR 1.700.

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Notary and dividend withholding tax

• The vpb rate will increase in steps from 20% and 25% to 16% and 21% by 2021. The extension of the first tranche in the vpb from EUR 200,000 to EUR 350,000 will be reversed. The disk limit remains EUR 200.000.

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• The basis of the vpb is being broadened. The deductibility of interest on borrowed capital is limited. Some existing specific interest deduction restrictions will be abolished. These are not specific interest deduction restrictions aimed at profit drainage.

The depreciation of buildings in own use in the vpb is limited to a floor value of 100% of the WOZ value (was 50%).

The depreciation of buildings in own use in the vpb is limited to a floor value of 100% of the WOZ value (was 50%).

• The effective rate of the innovation box goes from 5% to 7%.
• The forward settlement of losses in the vpb is limited to six years

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• In order to tackle tax avoidance, the government advocates the creation of a blacklist of non-cooperative jurisdictions and an obligation for multinationals to report on their activities per EU country and per blacklisted country.
• Dividend tax will be abolished.
• Direct investment in real estate by investment institutions will no longer be allowed.

Turnover tax

• Extension of the low VAT rate from 6% to 9%.

Environmental load

• The rate of the first slice of natural gas in the energy tax goes up and the rates in the first slice for electricity go down. The tax reduction in the energy tax is reduced.
• A higher load on landfill and incineration of waste.
• European agreements on aviation taxation are being pursued. A tax on noisy and polluting aircraft is being considered. It is possible that an air passenger tax will be introduced in 2021.

Car load

• The BPM refund scheme on taxis will be abolished.
• There will be a mileage charge for freight traffic. As compensation, the motor vehicle tax on lorries will be reduced.

Miscellaneous

Decrease in standard percentage of care allowance couples by 0.45%-point

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The rent allowance will be phased out over a longer income period. The ‘may’ provision will be deleted. There will be simplifications of the rent allowance.

• There will be low parking fees for emission-free cars.
• The tobacco tax will be increased.