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Changes in law and regulations 1st Quarter 2020

Career in Holland

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01.09.2020

As an entrepreneur, you are faced with new and modified rules and laws. This page offers an overview of changes relevant to businesses during the 1st Quarter of 2020. 

Administration 
Self-employed to receive new VAT-ID numbers.
If you are self-employed, you will automatically receive a separate VAT-ID number. Find out more about VAT numbers.

Business management
Balance Employment Market Act reduces difference between flex workers and permanent staff.
On 1 January 2020, the Balance Employment Market (WAB) comes into effect. It has several effects on employment contracts. Read more about the new act.

Minimum wage to increase.
If you employ staff, the gross amount for the legal minimum wage and legal minimum youth wage increases on 1 January 2020. Read more about the Minimum wage.

Energy Investment Allowance to include CO² reduction.
The energy investment allowance will include investments which reduce CO2 emissions, for example heat infrastructure. Read more about the Energy investment allowance.

Increase in sustainable energy surcharge.
The sustainable energy surcharge will go up in 2020. Companies that use a lot of energy will have to pay more. Read more about the Energy tax.

No insurance premium tax for comprehensive weather insurance.
Farmers will no longer have to pay 21% insurance premium tax on comprehensive weather insurance. Read more about Insurance premium tax.

Simplification of financial support for the self-employed.
The benefits scheme for self-employed professionals and freelancers is to be simplified. Read more about Financial support for self-employed professionals.

Stimulation of R&D tax credit.
In the future, you can apply for R&D tax credit 4 times a year and submit applications at a later stage. Read more about R&D tax credit.

Tax matters
Changes in small business scheme (KOR).
Entrepreneurs with a turnover under €20,000 can apply for exemption from paying VAT. Find out more about the Small businesses scheme

Low VAT on e-books.
If you sell digital books, newspapers and magazines, you can charge the lower 9% VAT rate. Read more about VAT rates.

Money back on private vehicle and motorcycle tax to be scrapped.
Taxi companies will no longer receive a money back for private vehicle tax when they buy new cars. Read more about Private vehicle tax.

Box 2 rate to gradually increase.
The rate in box 2 is to increase from 25% to 26.50% in 2020. In 2021 the rate will increase to 26,90%. Find out more about Corporate income tax.

Changes in rate of coroprate income tax.
The high rate of corporate income tax will not be lowered in 2020, and tax interest will scrapped. Find out more about Corporate income tax.

Accelerated decrease in deductions for income tax.
The government is to accelerate the decrease in deductions for entrepreneurs. Read more about Income tax.

General levy reduction goes up.
The general levy reduction for income tax will increase until 2021. Read more about Income tax.

Exemption for employers from paying premiums on absenteeism insurance.
Employers will be exempt from paying insurance premium tax on absenteeism insurance for staff on sick leave. Read more about Insurance premium tax.

Waste disposal charge on dumping and burning refuse abroad.
If you dump or burn refuse from abroad, you will have to pay a waste disposal charge. Read more about Importing and exporting waste materials (EWSR).

Gradual increase added taxable income for electric company cars.
If you own or lease electric cars in your business, the added taxable income rate will increase gradually. Read more about Company cars.

Administrative fine no longer tax deductible.
Administrative fines will no longer be deductible from income or corporate income tax. Read more about Income tax and Corporate income tax.

Introduction of simplified income tax system to be accelerated.
The introduction of the simplification of the tax system is to be accelerated. In 2020 there will be just 2 tax brackets, a year earlier than expected. Read more about Income tax.

Private business allowance to be gradually reduced.
The private business ownership allowance is to be gradually reduced to €5,000 in 2028. Read more about the Private business ownership allowance.

VAT rules for trade between EU countries to be simplified.
VAT rules for trade between EU countries will be simplified. Find out more about VAT on products from other EU countries.

Staff
More tax-free compensation for employees (WKR).
The Work-Related Cost Scheme (WKR) has been relaxed so that employers can offer their staff more tax-free compensation for work-related costs. Read more about the Work-related cost scheme

Simpler rules for lease bicycles.
Your employees will no longer have to track all their kilometres if they want to use a company lease bicyle. Read more about Company lease vehicles.

One-stop SME absenteeism insurance.
A raft of measures is to be introduced to make dealing with the absenteeism of sick employees cheaper and easier for small and medium-sized businesses. Read more about sick pay.

Legal matters
Claiming collective damages to be made easier.
Special interest or lobby groups will be able to go to court to claim damages on behalf of a collective in future. Read more about disputes.

Sales 
Lower percentage of charity lottery takings have to go to charity. 
A lower percentage of charity lottery takings have to be transferred to the charity. Read more about Games of chance

Transport
Suspension of vehicle registration period increased.
You can suspend your vehicle registration for longer than 1 year. You can also suspend the vehicle registration for different vehicles for different lengths of time. Find out more about Suspending vehicle registration

Source: business.gov.nl
Photo:
 Pixabay

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