Laws, rules and tax rates: this changes as of January 1, 2021

On Friday, as every year, all kinds of laws, regulations and tax rates change. As of January 1, 2021, the power load will be reduced, the tax on natural gas will rise, all new houses will have to be almost energy-neutral, you will have to register your drone and heat pumps will be allowed to make less noise.

We list the most important changes for you, by theme: taxes, housing, labour market, sustainability, companies and more.

Capital Load Down

People are allowed to own more savings and shares without paying taxes on them. This so-called duty-free capital goes up from 30,846 euros to 50,000 euros. The capital tax on the amount above goes up a little bit. If you have between 50,000 and 100,000 euros, you pay almost 0.6 percent tax, between 100,000 and 1 million almost 1.4 percent and above the million almost 1.8 percent.

The bottom line is that everyone with a capital of up to 220 000 euros will pay less taxes. People who have more will pay more.

Income tax down, labor discount and tax credit up

The rate of the first disc of income tax goes down slightly, from 37.35 to 37.1 percent. That rate applies to your gross income up to 68,507 euros. Both workers and people with benefits benefit benefit benefit from this.

At the same time, the labor discount that workers receive on their income tax increases. A person who earns 40,000 gross will therefore have to pay 428 euros less tax.

Then there is the general tax credit, which also goes up. People with an income of up to 68,507 will therefore pay less taxes. Lower incomes have more advantage than higher ones. Someone who earns 20,000 pays 126 euros less taxes.

Older Discount Up

For the elderly, there is a special discount on income tax. That discount goes up, too. Only elderly people who earn more than one AOW pension benefit, but a maximum of 49,000 euros, benefit from this. A person with an AOW pension and a supplementary pension who receives a total of 35,000 per year pays 81 euros less tax.

Self-employed deduction down

In order to reduce the tax differences between self-employed workers and employees, the self-employed deduction is reduced. Thus, self-employed workers get less discount on their income tax. The deduction decreases by 360 euros to 6670 euros. In the coming years, it will go down further in steps, to finally only EUR 3240 by 2036, which should bring the labour market more balanced, according to the Cabinet.

Income-dependent combination discount down

The income-dependent combination discount (IACK) can be obtained if you work and have a child of 12 or younger. The maximum discount will be reduced in 2021, which means that people who earn more than 30,000 euros will pay 66 euros more tax.

Charges system changes

Due to the childcare supplement affair, the payment scheme is adjusted. The Cabinet wants to achieve that โ€œthe human measure returnsโ€.

This allows people to react more to a decision by the Tax Administration. And the tax authorities can only stop surcharges or impose fines if someone has had enough chance to provide their own information. If someone has not paid part of an invoice, the entire one-year childcare allowance will no longer be recovered.

Transfer tax down for younger, up for investor

To give start-ups in the housing market more chance, the transfer tax for people up to 35 years is reduced from 2 to 0 percent. That measure applies between January and the end of March to houses in all price categories and from April only to houses of up to four tonnes.

Every buyer who doesnt live in a house will have to pay 8 percent. Theyre usually investors, buying houses for rent. But also people who buy a second home, for example a holiday home or a house for their child.

For buyers aged 35 and over who will use the house as main residence, the transfer tax will remain 2 percent.

Buildings mandatory almost energy-neutral

From now on, the so-called NZE standard applies to buildings. This means that only building permits are given for Nearly Energy Neutral Buildings, because that is what BENG stands for. This applies to both housing and other types of buildings. New government buildings have been the norm since 2019, because the government wants to set a good example.

In fact, the NZEB standard would be introduced as early as 2020. But that was postponed because the software to calculate whether a building meets it was not finished yet.

New Energy Label

Together with the introduction of the NZEB standard, there will also be a new comprehensive energy label for homes. For new homes, this energy label is based on the calculation method used for NZE as well.

For existing homes, you need to have an energy consultant come by who approves your home. That goes toexpected about 190 euros for a house cost and 100 for an apartment. If you already have an existing Simplified Energy Label (VEL), it will remain valid for another ten years.

Higher mortgage for two-earners and graduates

Two-earners can now get a higher mortgage. Because the second income counts for 90 percent instead of 80 percent.

And a student debt is going to count less to your maximum mortgage, because interest on college debts has fallen. A person with a study debt of 25,000 euros can therefore get about 7500 euros more mortgage.

Mortgage Interest Deduction Down

The maximum mortgage interest rate deduction has been going down step by step for a few years. In 2021, it goes from 46 to 43 percent. Only people with an income in the highest tax rate (above 68,507 euros) can deduct less mortgage interest.

Mortgage guarantee up to 325,000

From now on, you can get a mortgage with National Mortgage Guarantee up to an amount of 325,000 euros. That was 310,000. Through this guarantee, the mortgage lender asks for a lower interest rate. Because if you have payment problems and you are forced to sell your house, NHG will pay the bank if you still have a residual debt.

Request rent reduction

Tenants in a social rental housing who pay relatively high rent compared to their income can now ask for a reduction in rent once. For example, it concerns people whose income has fallen.

A person who earns less than 1935 euros gross per month and pays more than 619 euros rent is eligible.

No payroll tax for retraining former employee

If you lose your job, your employer will now be able to pay you education without having to pay payroll tax. Until now, this has been seen as wages and thus had to be paid taxes on it. But the government wants to make retraining easier in this coronacrisis to improve the labour market position of former employees.

Minimum Wage Up

Twice a year, in July and January, the minimum wage is adjusted. From January 2021, it amounts to 1684.80 euros gross per month. That is an increase of EUR 4.80 compared to July.

Compensation for transition compensation in case of death or pension

If personnel are dismissed, the employer must pay a transition fee. This should also be done if a company stops because the manager owner dies or retires. But the government thought that was undesirable.

So from now on, the company can get that transition compensation back from the UWV. It must be a small company with fewer than 25 employees. In the event of termination of business due to illness of the employer, the transition compensation is not compensated, but a scheme for this is being worked on.

No more travel expenses when working at home (postponed)

Because of the coronacrisis, many people suddenly went to work at home last year. Employers were allowed to continue to give their employees a tax-free travel allowance in 2020, even though they stopped coming to the office. One employer therefore continued to pay, the other stopped.

The Cabinet said earlier that this is no longer allowed on 1 January. But in mid-December, the Cabinet decided to postpone this for another month. Also in January 2021 you can get a duty-free travel allowance, even if you work at home. Before February 1, the cabinet decides what will become the rule from then on.

Flight tax entered

Airline tickets become slightly more expensive due to the introduction of the ATT. It amounts to 7.85 euros and applies to every passenger departing from a Dutch airport. The government wants to reduce CO2 emissions from aviation with the tax. Transfer passengers do not have to pay ATT.

Load on gas up

The tax on natural gas rises by almost 3 cents and then reaches 52.5 cents per cubic metre. The tax on electricity remains virtually the same.

However, an average household will not pay more taxes because the fixed discount on energy tax increases by EUR 31.

But if you consume more than average gas, you will pay more taxes. The government wants to encourage us to use less natural gas. For example, by insulating our house or taking a heat pump instead of a boiler.

Electric car up

For an electric car of the company, you still pay less addition than for a petrol or diesel fuel. But the difference will be less.

The addition was 8 percent on the first 45,000 euros of the list price and 22 percent on the amount above. That will be 12% over the first 40,000 and 22% over the amount above. For a hydrogen car and an electric car with solar panels, the addition of 12 percent applies throughout the price.

In the years after 2021, the addition for emission-free cars is increasing, reaching 22 percent by 2026come, the same level as fuel cars.

Acquisition tax car up

The bpm, the tax you pay when you buy a car, goes up for fueled cars. The more CO2 a car emits, the more bpm you have to pay. The government wants to stimulate the purchase of more sustainable cars. In any case, electric cars are exempted from bpm until 2025.

Industry pays CO2 tax

Large industrial companies will now pay a new tax if they emit more CO2 than a maximum that the government has set.

This should encourage companies to become more sustainable. The maximum will go down step by step in the coming years, so if companies continue to emit a lot of CO2, they will have to pay more and more taxes.

Corporate tax down, but fewer advances

Companies are going to pay less taxes on their profits, the so-called corporate income tax. Smaller companies benefit from this in particular. Companies are going to pay 15 percent tax on their first 245,000 euros profit and 25 percent on the amount above. That was 16.5 percent over the first 200,000 and 25 percent up there.

At

the same time, companies can less easily offset losses from one year with profits from another year. This should provide more than half a billion euros in additional corporate tax.

And tax evasion through complex constructions between parent and subsidiaries is tackled. That should provide more than EUR 170 million.

Less innovation advantage

Companies have to pay less profit tax on certain innovative activities. But this so-called innovation box tax is now going up, from 7% to 9%. The government says it is doing this in order to reduce the tax on households.

Tax advantage on investments

In order to stimulate investment by companies, the Cabinet comes up with the new Track-related Investment Discount (BIK). The scheme is temporary, in the hope that companies will continue to invest during the coronacrisis. If they make investments in 2021 or 2022, they get a discount on the payroll tax they have to pay.

New rules for franchisers

There will be new rules for the franchise sector. The government wants to strengthen the position of franchisees. Those are those who open their own business and pay for the use of a well-known name and formula.

The franchisor must provide additional information to the franchisee before signing a contract. And franchisees gain more control: if a company wants to make certain adjustments to a formula, a majority of franchisees must agree to that.

Duty of reporting tax avoidance

Accountants and tax advisors must report international tax structures that customers may use for tax avoidance to the Tax Administration.

If the auditor or advisor does not report this, he may be fined or prosecuted by criminal law.

Royalty Tax

Dutch companies have to pay taxes on foreign payments of interest and royalties. It also applies to payments to sister companies within a multinational in a country with a low tax rate. There are 21 countries on a list of low-rate countries.

This route of payments through the Netherlands is widely used to avoid tax and the new tax should prevent that.

New rules for drones

New European rules will be introduced for flying a drone. Not on January 1st, but a day earlier, December 31st. Users of a drone must now register with the RDW. You need to put the registration number on your drone. Only drones that are lighter than 250 grams and toy drones with the EU Toy label do not need to be registered.

Users of registered drones up to 25 kilos must adhere to the following rules: fly below 120 meters, the drone must always remain in sight, do not fly above crowds of people and do not fly in autonomous mode.

Tobacco advertising prohibited

It has been forbidden to advertise cigarettes for a long time. But it was still possible in one place, inside and on the faรงade of a tobacco shop. Thats also being banned now.

From now on, there will also be a ban on the sale of tobacco products for evening shops, petrol stations and kiosks. That ban was already in force for supermarkets.

Tobacco specialist shops may still display cigarettes under conditions, but no longer show advertising.

Less noise from heat pump and air conditioning

More stringent noise requirements apply to the outdoor units of heat pumps and air conditioners. They must not cause more than 40 decibels of noise to the neighbors. The rule applies only to new heat pumps and air conditioners to be installed.

Tractors for registration and registration

Tractor owners must register those vehicles with the RDW(State Service for Road Traffic). They have the time from 1 January to 31 December 2021. If owners want to drive on public roads, the tractor must also be given a license plate.

No APK for old-timers

Cars aged 50 years and over receive an exemption for the APK (General Periodic Inspection). There are some 68,000 vintage cars in the Netherlands, 50 years old and older. According to the Cabinet, it is usually about well-maintained cars owned by enthusiasts and very little is driven.

Change debt relief and seizure free foot

The Municipal Debt Assistance Act is amended. As a result, aid workers can offer debt relief on their own initiative based on signals. Debt problems need to be dealt with faster.

In Amsterdam they have been doing early signalling for a long time. There, the average debt of people in a debt relief trajectory is 26,000 euros, whereas the average national debt is 42,000.

The non-stop foot will also be calculated differently from now on. That is the monthly amount for people in a debt relief process that creditors are not allowed to gain. Often this was too low, which led people to fall below the subsistence minimum.

Stamp more expensive

We send fewer and fewer letters year after year and therefore postal delivery becomes more and more expensive for PostNL. Thats why the price of a stamp goes up again, with 5 cents to 96 cents. In 2010, a stamp cost another 44 cents.

Brexit

And there is Brexit, the UKs departure from the EU. That departure officially started on 31 January 2020, but since then the rules remained the same and the final relationship between the EU and the UK was negotiated.

These new rules will enter into force on 1 January and a lot will change. For example, border controls are being carried out on food, plants and animals and Dutch fishermen are allowed to fish less in British waters. For an overview look here.