Companies

Self-employed deductions reduce further
In 2022, the regular self-employed deduction will reduce further from €6,670 to €6,310 for entrepreneurs who have not yet reached the statutory retirement age (AOW). For entrepreneurs who have reached the statutory retirement age, the self-employed deduction reduces from €3,335 to €3,155.

Take note!  The self-employed deduction will continue to reduce annually to €3,240 in 2036.

Increase in environmental investment tax credit
There are three tax credit categories in the environmental investment credit (MIA) scheme. Category I has been expanded with certain green investments, including a light electric van and a subterranean water storage. In addition, the environmental investment credit for category I increases from 36% to 45%. For category II, the environmental investment credit increases from 27% to 36%. And for category III, the environmental investment credit increases from 13.5% to 27%.

Take note!  Once the budget for the MIA tax scheme has been reached, its allowance is discontinued. The budget for the period 2022-2024 will be increased by €30 million per year. This means the budget for 2022 amounts to €144 million.

Customary salary in innovative start-up
Since 2017, the rate of pay of the director and major shareholder of innovative start-ups can be set at the statutory minimum wage. This exception, included in the customary salary scheme, improves the liquidity position of innovative new companies. The exception should expire on 1 January 2022 unless the measure is evaluated positively. As the evaluation has not been completed yet, the expiry date of the exception has been postponed to 1 January 2023. In 2022, the statutory minimum wage can therefore be maintained for the director and major shareholder of innovative start-ups.

Take note! To be able to make use of the allowance, an R&D statement for start-ups (S&O-startersverklaring) is required.

Tip! If the evaluation is positive, a lower salary will also be possible after 2023. The Tax and Customs Administration would approve that, for example, if, in a structural loss situation, the customary salary could even be lower than the statutory minimum wage.

Restriction in offsetting withholding taxes with corporation tax
The proposal is to temporally restrict the offsetting of dividend tax and tax on games of chance (withholding taxes) with corporation tax (Vpb) as from 1 January 2022. This is in order to eliminate inconsistency with EU law. The offsetting of withholding taxes is limited up to the amount of corporation tax payable in one year. In doing so, the withholding taxes that are not offset are deferred without limitation to subsequent years.

Take note! Deference is only possible if the amount of withholding tax to be deferred has been established by the inspector in a decision against which an objection may be lodged.

Take note! In order to regulate the temporal offsetting with existing restructuring facilities and the single-tax entity regime, a number of accompanying measures have been included.

Mismatches for price corrections
Transactions between related bodies are governed by the arm’s length principle. If a non-arm’s length price is maintained, this price must be adjusted. This may bring about a situation where part of the profit is not taxed at all. This happens when a taxpayer’s profit is adjusted downwards and this correction is not taxed at the affiliated body or is taxed as a lower amount as income. The measures contained in the proposal in such a situation limit the downward adjustment of the taxable profit in the Netherlands for the taxpayer.

Loss setoff tax group
Recent case law may result in holding and group financing losses being offset against profits from non-holding and group financing activities. The government indicated in the accompanying letter to the tax plan that it would remediate the consequences. Without remediation, this would cost the treasury a great deal of money. This new scheme will be included in a memorandum of amendment.

Take note! In a tax group with a subsidiary established by the holding company and with the holding company having pre-incorporation losses, pay attention to any implications of this remedial legislation.