November 28th, 2014
This year the tax reform is relatively restricted to technical changes and some changes that were urgent according to the government. The government has proposed to discuss further changes around Spring 2015. The below explained tax reform will come into force as of January 2015.
Tax reform for Dutch real estate
Due to the instable real estate market, the government has proposed the prolonged the following provisions.
Mortgage on house for sale
The mortgage deduction for a period of three years will continue for real estate that is empty and for sale. The same provision applies for real estate that is under construction. The original plan was to restrict the duration to two years in 2015.
If the landlord wants to temporarily rent out the house that is for sale, the mortgage interest cannot be deducted in box 1. However, if after the rental period the house is empty again and for sale, the house owner can deduct the mortgage interest for a maximum period of two years. The government intended to abolish this provision as of 2015.
Remaining debt after sale
The interest on debts for a house that was sold for less than the mortgage will be deductible in box 1 for a maximum period of 15 years. The interest used to be tax deductible in box 1 for a maximum period of 10 years.
Tax reforms for the Dutch payroll tax
There are some changes for the director shareholder as of January 2015 with regard to the common salary that has to be paid out via the BV.
Currently, the salary of a director shareholder should be at least € 44,000 a year. The salary can be set a lower amount if the director shareholder does not perform any work for the B.V. This can be the case if the director shareholder has a Stamrecht BV and can proof that there are no activities governed via the BV.
The minimum salary can be set higher if the salary is not in conformity with the salary of an employee that is not a shareholder and that works in a comparable position. A range of 30% is taken into account in order to determine the salary.
The government is of the opinion that this provision should be restricted in relation to the 30% range. The government wants to reduce the range from 30% to 25% of the salary of a comparable position. This last addition will make it easier to calculate the salary of the director shareholder.
The salary of the director shareholder will be calculated as followed. It will be the highest amount of:
1. 75% of the salary of a person that is in the most comparable position; or
2. The highest salary of an employee or an employee of an entity that is closely related to the entity where the shareholder is a director of. A company is closely related if the BV owns more than 30% in the shares of the company; or
3. A minimum of € 44,000
The government has also proposed that they will apply these provisions less strict in case of a start up for a duration of 2 years.
Employees expenses; Working costs provision
This provision is applicable as of January 2011 but the employer is allowed to choose for the old legislation. As of 2015 it is no longer possible to choose for the old legislation. Every employer must apply the Werkkostenregeling. This is also applicable for a BV with only one shareholder.
Under this new rule, an employer can reimburse cost for business related expenses up to a maximum of 1.2% of the total wage sum. If the employer reimburses more than 1.2%, the surplus is taxed against 80%. This tax is due by the employer, not the employee.
Life course savings scheme
As of January 2012 the life course savings scheme has been abolished. For employees that already built up a scheme prior to 2012, transitorily law is applicable. They can choose to distribute the amount as a lump sum, regardless of the purpose. A tax deduction is applicable, only 80% of the total amount will be subject to income tax.
Other tax provisions for 2015
People who have put money in an annuity and are disabled to work can buy off a part of the annuity. The provision is only applicable in case of a full disability to work and if the pension age is not yet reached. There is a restriction to the amount that can be distributed.
The government introduces the possibility to build up a private pension besides the pension via the employer. This pension can be concluded to add the current pension via the employer or government. The government allows an exemption in box 3 for the pension that is built up. The pension that qualifies is the net old age pension, net partner pension and net orphan pension.