Budget Day 2021: the expectations

Every third Tuesday of September, it is Budget Day (known as Prinsjesdag). On Budget Day, the king gives his yearly speech, and the government presents its plans for the coming year. Every year, the plans for the coming year are already leaked before Budget Day, and this year is no exception. In this article, we will discuss the leaked tax plans for 2022.

Expectations of Budget Day 2021

Rates income tax

The tax rate in bracket 1 expects to slightly reduce to 37.07% in 2022 for incomes up to € 68,507 (in 2021, this is 37.1%). The second bracket will remain unchanged with a rate of 49.5% for an income beyond € 68,507. The maximum deduction rate (this applies if your income is higher than € 68,507) will be reduced from 43% to 40%.

Lower self-employed deduction

In 2021, the government decided to reduce the self-employed deduction until it amounts to € 3,240 in 2036. By doing this, the government wants to reduce the differences between the self-employed (zzp) and employees, in order to bring the labor market back into balance. The annual reduction is € 360 per year (until 2028). In 2022, the self-employed deduction will amount to € 6,310.

Reimbursement working from home costs

Working from home has become more and more ‘normal’ lately. For employees, some extra costs are involved (such as gas, water, electricity, food, and drinks). Do you want to compensate for these costs as an employer? Currently, if an employee incurs costs for working from home, you can not reimburse these costs tax-free. A specific wage tax exemption for reimbursement for working from home costs will be introduced.

small business scheme

Increase of the discretionary budget

Last year, due to COVID-19, the discretionary budget had increased to 3% for total annual wages up to € 400,000. Earlier plans wanted to reduce this budget back to 1.7% for 2022. But with the support packages continuing, the budget is expected to be increased. The precise increase for 2022 is yet unknown.

Stock option rights fiscally attractive

Another bill in the Tax Plans 2022 is to provide stock option rights as a salary fiscally more attractive in order to stimulate innovation. To achieve this, the expected proposal is to shift the moment of taxation to the moment the shares are tradable.

What does this mean for you?

Above, you can read the most important fiscal expectations of Budget Day 2021. On Tuesday, September 21st, 2021, the government present its definite plans. Curious what this will mean for your fiscal situation? We are happy to help you! Feel free to contact us using the details below.

WhatsApp us:

Call us:

+31 (0)20-2170120