The Cabinet announced a package that includes many new tax measures. Also for business. These are changes that often have a direct impact on both large and small businesses. Software company and tax expert Nextens explains what the bigger tax changes will be.
The 2023 tax plan presented on Budget Day contains several plans that will directly affect entrepreneurs. on me Prinsjesdag private page The Chamber of Commerce has incorporated all the changes.
The list of changes announced is much longer than last year, says a spokesperson for Nextens, a company that provides tax return programs. “In 2021 we were dealing with a transitional government. Now that there is a new government, they can just really speed up.”
He described the package of measures as not being business-friendly. “The money has to come from somewhere, but it’s a pity that the bill is being put on the business community.”
But what exactly will change for entrepreneurs? Nextines explains the most notable changes.
Self-employed discount
The self-employment deduction is the amount that entrepreneurs may deduct from their earnings so that they pay less taxes. But that amount drops dramatically, says a Nextens spokesperson. “In the coming years, the amount will be significantly reduced. Now the deduction for the self-employed is 6,310 euros and this will reach 900 euros in 2027.”
According to Nextens, the government is focusing on more permanent contracts for the Dutch, as this provides them with more financial security. “But that makes entrepreneurship less attractive.”
BPM exemption for delivery vans
The Entrepreneur’s exemption for delivery vans will expire on January 1, 2025. From then on, entrepreneurs will have to pay a bpm (tax on passenger cars and motorcycles) for their delivery van.
“That would be disappointing for a baker or butcher delivering their produce in a delivery truck. What they have to pay extra can be as much as 40 percent of the listing value for the car.”
The bpm will also soon be determined by the CO2 emissions of the delivery truck. Now the net list price still determines how high the bpm will be.
“The length of the first tariff letter was almost halved from 395,000 euros to 200,000 euros.”
Nextens . spokesperson
Corporate tax increase
A lot changes in the area of corporate tax, the tax a company pays on its profits. Corporate tax must be paid through NVs and BVs, among others.
“For us, this is a striking change, as this has serious consequences for many companies in the Netherlands. The length of the first tariff letter is almost halved from 395,000 euros to 200,000 euros,” a Nextens spokesperson said.
As a result, a smaller portion of your company’s profit falls under the lower rate. “In addition, the corporate tax will be higher than the first tranche. That was 15 percent and it will reach 19 percent. In the end, this change will generate about 3 billion additional euros for the state treasury.”
Income tax
Major shareholders who are directors who own more than 5 percent of the shares in the company will have to deal with the increased tax burden. Box 2 will be split into two rates from 2024. A base rate of 24.5 percent will apply to income of up to 67,000 euros. A high rate of 31 percent for income above that. Now that’s still 26.9 percent of all income.
“This measure is being implemented to prevent major shareholders from amassing profits. The government wants to encourage them to spend their money.”
Old-Age Financial Reserve (FOR)
From January 1, 2023, the additional accrual of the old-age financial reserve will cease. “That’s how much the business has been allowed to make in return for their age. They kept a portion of the profit without actually having to put that money aside. No tax has to be paid on the amount withheld yet. The money is only paid. When you close your business.”
This scheme is now terminated. “In practice, it turns out that this arrangement was often used to keep money inside the company and to obtain tax deferrals. But I think it is a shame that this arrangement ended. The advantage was that you did not have to transfer the money to a pension fund and thus you could invest in your company.”
Transfer tax
The transfer tax will increase from January 1, 2023. Businessmen who want to buy a commercial property or want to invest in real estate will have a lot of problems with this. “The transfer tax will go up from 8 to 10.4 per cent,” says Parkman. “This will bring the government more than 1 billion euros.”
Labor costing chart
It’s not all bleak and merciful for entrepreneurs. “This increases the tax-free amount that entrepreneurs can spend on perks to employees.”
From the wage bill (the amount employees earn together) to €400,000, 1.7 percent can now be spent tax-free on extras, later it will be 1.92 percent. “Employers will soon have a bigger budget for, say, Christmas gifts and company outings.”
energy ceiling
The government also wants to introduce a temporary price cap on energy prices for some small and medium businesses. Ondernemersplein states that there may also be a file Special subsidy scheme for energy costs For companies that use a lot of energy to provide their services or products, such as bakeries, garden centers and saunas.
A Nextens spokesperson notes that it is not yet clear what this will look like and when it will be introduced. “But I expect the lighting for businesses to be great.”