The new tax reform for 2015

Broadstreet - News - - The new tax reform for 2015

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.

Temporary rent

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

Director Shareholder

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

Annuity

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.

Pension

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.

Caroline Villamizar Duque
Caroline Villamizar Duque
17:40 12 Mar 20
I have had a good experience setting up a BV as an expat recently arrived here. Their advice was solid and they have introduced me to other suppliers including a notary and an immigration lawyer who have been very useful and professional, with all working well as a team. They are also really fast at responding which I have realised is not the norm here. Would recommend.
Sarah Qabbani
Sarah Qabbani
11:35 12 Mar 20
I had a great experience dealing with Broadstreet. Everyone I spoke to were super nice and helpful. They were patient with me gathering so many documents for my application and they made sure my application was complete for better chances of getting the 30% ruling. I highly recommend their services.
tokinembourg2 .
tokinembourg2 .
08:54 11 Mar 20
Been using Broadstreet services for many years now, for different topics such as business and private. Always responsive, good follow up. A good partner I trust for their advices too. I'd like to add business relationship comes down to human relationship. A big plus to Elizabeth Bouwer for her support who is always helping me. Highly recommended.
Marcio Gualtieri
Marcio Gualtieri
18:23 08 Mar 20
As other reviewers have mentioned, transparency regarding pricing is a big issue with them... It seems like my experience was not an isolated case... They were very responsive in the beginning when trying to get me on board, after that not so much... Definitely lacking quality and professionalism. Not good value, certainly overpriced...
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Giacomo Ferrero
12:08 22 Jan 20
Top quality services provided to me last year. They were always very attentive and professional and would definitely work with them again.
Dimitrios Vlachopoulos
Dimitrios Vlachopoulos
22:25 19 Dec 19
Excellent experience with the creation of my BV, as well as 30% ruling. I enjoy working with Elisabeth, who is very responsive and efficient
Dimitrios Vlachopoulos
Dimitrios Vlachopoulos
22:25 19 Dec 19
Excellent experience with the creation of my BV, as well as 30% ruling. I enjoy working with Elisabeth, who is very responsive and efficient
Deny George
Deny George
18:08 19 Dec 19
Fantastic service and professional advice in really fast time manner. My advisor was Anne and she did excellent on explaining how the tax system works in my case what to do and how to manage to get around as Expat worker who just moved to Netherlands. Absolutely recommended!
Deny George
Deny George
18:08 19 Dec 19
Fantastic service and professional advice in really fast time manner. My advisor was Anne and she did excellent on explaining how the tax system works in my case what to do and how to manage to get around as Expat worker who just moved to Netherlands. Absolutely recommended!
Ari S
Ari S
14:22 04 Dec 19
Absolutely HORRIBLE firm. Rude people and totally unknowledgeable. It took another firm a year to fix all the issues/mistakes Broadstreet made on my taxes and 30 application. They tried to charge me additional fees to fix their mistakes.DO NOT RECOMMEND AVOID AT ALL COSTS
Nestor Leal
Nestor Leal
09:03 12 Nov 19
Broadstreet has been a true partner in all my business affairs in the Netherlands. They provide honest, accurate and useful advise in tax, payroll and accounting matters.They will help your business thrive. ;-D
Nestor Leal
Nestor Leal
09:03 12 Nov 19
Broadstreet has been a true partner in all my business affairs in the Netherlands. They provide honest, accurate and useful advise in tax, payroll and accounting matters.They will help your business thrive. ;-D
James Mckerrow
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08:38 29 Jul 19
This firm is Absolutely Excellent! Consultancy and Execution is 1st rate - probably the best ever experience that I have had with a Dutch company!
Daniel Sokolov
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14:41 06 Dec 18
Thank you Broadstreet!!!first I have to say that my knowledge in taxes is 0%.I'm checked a lot before I find a Broadstreet team and I'm really glad.they are professional helpful and helped me step by step with everything what I ask for.Thanks again to everyone
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14:08 01 Sep 18
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15:33 30 Aug 18
I have used Broadstreet for around 10 years for tax purposes within Holland. I found them knowledgable, responsive and very professional. I would highly recommend them as an expat tax service.
Benedict Carey
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13:43 06 Nov 17
Having been bounced around a few tax advisors and almost got my self in hot water by being told the wrong thing, I got a recommendation from another person who had a similar business structure to me. The Broadstreet advisor was efficient and thorough and provided a comprehensive and understandable summary of how to deal with my situation. Relocating between regimes with complex tax laws is never going to be straightforward, at least these guys do put the effort in ... beware of others who will make a suggestion and then disappear when it goes haywire!
marco lirio diaz
marco lirio diaz
09:41 24 Jun 17
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