The Netherlands: on 25 May 2012, the Spring Memorandum 2012 was presented to the Dutch parliament. This Memorandum contains further details on the fiscal measures agreed upon in the Lower House for the 2013 Budget. The main additions and changes to the agreement are summarized below:
Wage tax
(a) Crisis levy on high incomes. Incomes (including bonuses) in excess of € 150,000 in 2012 will be subject to a one-off withholding tax of 16% in 2013. The employer is liable for payment of the tax.
(b) Excessive severance payments. Employers must withhold tax at a rate of 75% on excessive severance payments. Currently, this is 30%.
VAT
The VAT rate on solar panels will not be reduced to 6% (i.e. it remains at 19%). Plans are to grant a subsidy instead.
Personal taxation
(a) Tax brackets and credits. For 2013, no adjustment of the tax brackets or tax credits.
(b) Vitality package. The Tax Plan 2012 eliminated the continuation bonus for employees aged 62 and over, and replaced it with an employment bonus with effect from 1 January 2013. This employment bonus will, however, be abolished (i.e. not enter into effect).
(c) Box 3 investments. For certain investments in Box 3 (income from savings and investment), the credits and exemptions are changed as follows:
- | the tax credit available for so-called "green" investments will remain 0.7% in 2013; and |
- | the credits and exemptions for social investments and investments in venture capital will be abolished with effect from 1 January 2013. |
(d) Employee travel expenses. Travel expenses reimbursed to the employee for commuting are, with effect from 1 January 2013, no longer tax free. Transitional rules apply for travel arrangements concluded before 25 May 2012.
(e) Company car. With effect from 1 January 2013, commuting will be considered private use of the company car. Transitional rules apply for lease contracts concluded before 25 May 2012.
(f) Reimbursement facility. The reimbursement facility, under which an employer may grant a tax-free general employment cost compensation (currently, 1.4%), will be increased to 1.6% for 2013, and 2.1% from 2014.
Retirement age
Starting 1 January 2013 the retirement age will be increased with one month. Starting 2019, the retirement age will be set at 66 years of age. Starting 2024
At this stage it is not certain which of the aforementioned changes will be accepted in Parliament. We will keep you informed.
Corney VerstedenHLB Van Daal & Partners
Prof. Asserweg 8
5144 NC Waalwijk, Netherlands
Phone: +31 (0)416 330 505E-mail:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
About HLB Van Daal & Partners
HLB Van Daal & Partners is a member of HLB International. As a firm of professional accountants and business advisers, HLB Van Daal & Partners Accountants & Belastingadviseurs is committed to providing clients with an exceptional standard of services and expertise that will add value to their businesses and contribute to their growth. HLB Van Daal & Partners Accountants & Belastingadviseurs has a vision for your future, a plan to help you thrive in the new economy, and a passion for success.
HLB Van Daal & Partners Accountants & Belastingadviseurs provide their clients with a comprehensive range of business services in addition to the audit, accounting and taxation services that are central to our practices. Personal involvement of Partners in all client engagements is a feature of our services. Partners of HLB Van Daal & Partners Accountants & Belastingadviseurs are in turn supported by qualified staff who work as a team to complete assignments in a cost effective manner.
Visit the website of HLB Van Daal & Partners
