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The Dutch tax system changes every year, this doesn’t make the system easier. This year, 2021, the tax rules changed again. The TaxSavers clarifies the most important changes of 2021 on this page.
Tax-free capital
The biggest change in the Dutch tax system of 2021 is a significant increase in the tax-free capital. In 2021, the tax-free capital increased from €30.846 to €50.000 if you do not have a fiscal partner. If you do have a fiscal partner, the tax-free capital increased from €61.692 in 2020 to €100.000 in 2021. From now on, only your capital in excess of €50.000 (or €100.000 if you have a fiscal partner) will be taxed. This saves a significant amount of money for a lot of people.
Tax rate
This year, there were no big changes to the tax brackets and tax rates. The only change is a decrease of the tax rate in the first tax bracket. In the below mentioned tables you can see this change.
| tot €68.508 | vanaf €68.508 | |
|---|---|---|
| 2020 | 37,35% | 49,50% |
| tot €68.508 | vanaf €68.508 | |
|---|---|---|
| 2021 | 37,10% | 49,50% |
Example
In this example, we show you the effect of the decreased tax rate. We assume a yearly gross salary of €45.000,-. We will compare the difference in income tax between 2020 and 2021.
2020: A yearly income of € 45.000 did have a tax rate of 37,35%. This shows that €16.807 income tax must be paid in 2020.
2021: A yearly income of € 45.000 has a tax rate of 37,10%. This shows that €16.695 income tax must be paid in 2021.
Due to the change in our tax system, you have to pay €112 less income tax in 2021 in this example.
Allowances
The government will work on a better benefitsystem in 2021. Their objective is to achieve a system which is more fair and which has a more human approach.
Goals:
- Improve the legal protection
- More human approach
- Change the definition of partnership
Tax tips for the year 2021
For the year 2021, The TaxSavers clarified some tips regarding tax:
1 Pay your provisional tax return at once
When you have enough savings, it’s profitable to pay your provisional tax return 2021 at once, instead of paying it in monthly terms. When you pay at once, you will receive a discount. Given the low interest on savings, using this discount is more profitable.
2 Arrange your tax partnership
In the Dutch tax system, tax partners get the opportunity to choose who declares which deduction or capital and in which proportion they do so. This can lead to quite big fiscal advantages for tax partners. However, only living together with someone does not automatically imply a tax partnership. On Belastingdienst.nl you can see which conditions you should meet. Do you not meet the conditions? You can still make a cohabitation agreement before the 31st of December, 2021.
3 Get a tax adviser
A tax adviser can help you with different fiscal issues. We can help you complete your tax return or provisional tax return. Another option is to let us check your prefilled (provisional) tax return.
The TaxSavers is happy to help you and to check what the changes and consequences are for you in 2020. Leave your details in our contact form or call us on +31 (0)20 – 2170120 for an informal conversation.
We are happy to help you!
We are happy to help you with all your tax-related questions. Leave your details in our online contact form and we will get in touch to discuss your tax issues. You can also call us on +31 (0)20- 2170120 for a free introduction.
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