Dutch Tax Blog

Dutch Tax Blog

ZZP'er no more tax deduction on workspace

General Dutch (Tax) NewsPosted by Mike de Gruijl Tue, November 01, 2016 10:55:49

Secretary of Finance Wiebes will soon release a letter of amendment which states that freelancers may not deduct their rent if they use as workspace for at least 10% of their rented house. The Supreme Court judgment's is set aside with this decission.

In August this year, the Supreme Court indicated that entrepreneurs could deduct the rent paid by them from income taxes as long as they use 10% of their rental house as a workshop. The Secretary of State has now put an end to this scheme. Because of all the attention drawn by the judgment, he expects it will costs the Treasury too much.

Inequality between entrepreneurs with owner-occupied house and rented house.

In addition the judgment was a disparity between the treatment of a non-independent workspace for entrepreneurs with a rented house and those who are homeowners. This disparity is corrected again by the letter of amendment. Costs for an independent workspace in both owner-occupied houses as a rental house will remain income tax deductible.

Want to learn more about tax deduction for your personal and business situation? Contact us at https://www.tssolutions.nl

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Gifts and Dutch taxes

General Dutch (Tax) NewsPosted by Mike de Gruijl Fri, October 14, 2016 17:12:43

As known, gifts that you as an individual, donate to a charity or institution are deductible for income tax purposes. However, there is a threshold and a maximum. There is a way to bypassing this.

Gifts Deduction for individuals

Threshold. Donations to an ANBI (the charity institution) or a support foundation SBBI (Social interests looking after setting) are deductible from the income tax, provided the donations exceed a certain amount. The threshold at a rate of at least 1% of your threshold income, with a minimum of € 60, -. Pay attention. Other gifts are not deductible.

Maximum. In addition, a maximum of 10% of your threshold income. That threshold income is the total of all your income and deductions in Boxes 1, 2 and 3. The personal allowance (medical expenses, and the like) thereby remains disregarded. Pay attention. Do you have a fiscal partner, you must add up the threshold income of your partner with your own threshold income. You understand that you therefore it is not easy to the deduct small gifts in the income tax.

Suppose your threshold income is € 30,000, -. The threshold then will be already € 300, -. Only what is donated above this amount to the charity, is deductible.

regular donation

At least five years. Consider a periodic donation. With a regular donation you will agreed a fixed amount to the charity or institution (such a regular donation may also be an association with at least 25 members) that you annually donate (minimum five years), for example, € 75, -, providing that you are still alive during this period.

Deed. Where you used to consult a notary for such an agreement, it is now no longer necessary. You can arrange it in a private act.

No threshold. The advantage of such a periodic donation is that there is no more threshold in that case. So every euro donated is a tax credit! And if you already annually bestows such a relatively small amount of one or more charities, why then let slip that tax?

At a tax rate of 42% a donation of € 75, - will still give you an annual benefit of € 32,-.And perhaps you want to take this benefit in account with a the regular donation?

And gifts to the children?

Annual exemption. Annually, you may over € 5000, - pay tax on your children (2016: € 5304, -). This donation is not deductible for income tax purposes.

Repetitive donation. What if you make this donation in a way of such a regular gift? According to the Tax Administration it will be a recurring donation. The tax authorities will calculate the cash value of all agreed donations. The present value is so much higher than the exempt amount, making the multiple still owed gift tax. Be aware. Such a predetermined periodic donation is not suitable for gifts to children.

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Leasing your company car during holidays

General Dutch (Tax) NewsPosted by Mike de Gruijl Tue, October 04, 2016 13:52:54

A lease agreement between an employer and employee for the use of the company car during holidays does not prevent the addition on your salary for this car. This is what a Dutch court recently ruled.

Lease agreement holiday
In this case, it concerned a worker who had been given a company car to use during his holidays. The Tax Administration had provided that employee a "Declaration of non private kilometers" The employee then went in 2011, 2012 and 2013 with that same car on holiday. Before that he had signed a lease agreement with his employer. This agreement stated that the employee's rented the company car for a fee from the employer during the holiday season. The Tax authorities checked the logbook and claimed additional assessments. They believe that the 500 private kilometergrens was exceeded by the driven holidays kilometers. But they did settled the lease payments with the additional assessments.

Holiday Kilometers are private kilometers

The employee did not agree with this assessment and went to court. The judge stated that an addition to the company car can only be omitted if an employee uses a car for less than 500 kilometers for private purposes. The mileage of the employee on a holiday, according to the court, are to be regarded as private. That the employer and employee had signed a lease agreement makes no different thus the judgement of the court. So the Tax authorities had rightly imposed the additional tax assessments and taking into account the personal contribution.

More Dutch tax information can be found at Tax & Service Solutions

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Hotline for self-employed individuals

General Dutch (Tax) NewsPosted by Mike de Gruijl Thu, September 29, 2016 22:06:27

Hotline for self-employed

Self-employed without employees (ZZP'ers) can report their problems from mid-October at a hotline from the tax authorities.
This hotline will be an online digital form on the website of the tax authorities.

Eric Wiebes
With this hotline, Secretary of State Eric Wiebes (finance), wants to get visibility on unforeseen and undesirable effects of the new "zelfstandigenwet", so he announced this Wednesday. He promises to address any bottlenecks.

Squeezed out
The new law should prevent self employed individuals are being squeezed out and put with their back to the wall by their clients for who they work for. Clients and contractors can conclude an agreement if there is clarity needed on their working relationship.

According to self-employed professionals this is exactly where the biggest problem lies: the agreements. Companies are afraid to provide more commands because the tax office does not accept some contracts.

The Dutch parliament will discuss about these issues Thursday evening.

Need help with making the correct contracts or any other tax matters? Tax & Service Solutions is your perfect partner.

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VAT rules on bad debts simplified

General Dutch (Tax) NewsPosted by Mike de Gruijl Tue, September 20, 2016 11:04:11

Proposal to simplify refunding VAT on bad debts

The Financial Secretary has proposed to simplify the refund of VAT on bad debts by January 1, 2017.
The right to reimbursement arises at least asfar as the compensation is not received by your organization in one year due, fully or in part.


If an invoice is issued with a payment date of September 8, 2016, and the bill is not paid on September 8, 2017, the VAT on bad debts may already be reclaimed.
Another change is that your organization then itself will deduct the refund to the regular VAT return for the period in which it is clear that the debtor will not pay and the organization for that purpose will not have the need to do an application for refund of VAT on bad debts by letter.
If your organization receives the outstanding amount in a later stadium fully or in part, the VAT has te be still (partly) paid to the tax authorities.

Faster & Easier

This proposed amendment will most likely result in a faster and easier way for your organization to recover the VAT on bad debts in the future.

Do you want to learn more about your particular situation and your tax matters?
Check our site and contact us Tax & Service Solutions

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Internet sales, hobbyist or entrepreneur

General Dutch (Tax) NewsPosted by Mike de Gruijl Tue, September 13, 2016 11:16:11

Are you only selling your goods as a person via the internet or as a business?

For the Tax Authorities its is difficult, because of the rise of the Internet economy to determine whether someone is a hobbyist or an entrepreneur. This is mentioned in internal documents of the Expertise Enforcement (EHI) from the tax authorities.

A world without the internet
A world without the Internet is impossible to imagine in today's economy. This also has implications for the tax authorities in terms of tax and enforcement. Consumers are able more easily through the Internet to act on the market as a provider of goods and services. The transition from hobby to business also makes it easier. In practice, the tax authorities find it difficult to distinguish whether a person is a hobbyist or an entrepreneur . For example, when is a hobbyist who refurbishes and sells bicycles classified as an entrepreneur? If he refurbishes and sells some bikes, the Tax authorities notes this as amateurism, which no tax is levied. If this man however sells on regular basis , then this is regarded as entrepreneurship and the income taxed as income from business.

Good control is difficult for tax authorities

The complicated distinction between hobbyists and entrepreneurs will lead to enforcement problems with the tax authorities. For the tax authorities it is indeed not easy to control it properly. There is often a small business making implementation costs exceed revenues. EHI recommends in its document, to continuously monitor developments and provide information about tax obligations through the website of the Tax Administration.

Conditions for entrepreneurship

The Tax and employs some conditions in order to determine whether a person is an entrepreneur for income tax purposes. Like the following;
-The entrepreneur should aim for profit.
-He decides when and how he carries out his duties and has several clients and customers. ---He invests in his company
-He accepts entrepreneurial risk and take action to ensure that his company continues to exist.
For VAT purposes , a person will be much faster an entrepreneur;
- When a person provides goods or services, he must calculate in principle compulsory VAT.

The discussion is very actual at this moment in The Netherlands especially for people who rent out their home via Airbnb

When you are not sure wether you will be determined as a person or entrepreneur it is always wise to ask help from an expert.
Tax & Service Solutions is an expert when it comes to all your tax matters. check our website for more information.

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ZZP? Beware for your contracts!

General Dutch (Tax) NewsPosted by Mike de Gruijl Sat, September 03, 2016 14:50:08

Still lots of work to be done!
Contracts for self-employed workers, the replacement of the Declaration labor relationship (VAR), have been rejected nearly half of all times by the Dutch Tax Authorities.

That is what Eric Wiebes Secretary of state (Finance) let know after a WOB (public administration law) requested by "MKB belangen"

Since May 1 of this year, at the implementation of the Law Review deregulation of labor relations (DBA) The tax authorities received 4481 model agreements from freelancers. Of these, about half are still pending, 1,033 have been rejected.

In 370 cases, the rate model agreements freelancer contracts have been approved. In 814 of the cases, the application was demolished, Wiebes reports.

As of May 1, 2016, the Declaration labor relationship (VAR) for self-employed (freelancers) has been abolished. Until 1 May next year there is a transitional period in which the Tax Authorities emphasis on awareness and implementation.

The VAR was designed to determine whether companies should include payroll and pay tax on the income of self-employed workers.

These were people officially working as a freelancer but were actually employed by the employer. For the Tax Administration this was difficult to check. As of May, the DBA controls the relationship between client and freelancer.


MKB Belangen, an organization for ZZP'ers and smaller companies, three months after its introduction MKB Belangen calls it a "massacre".

"In July we have already concluded that the DBA has failed. But the figures that have now come out scare us enormously," announces MKB Belangen's director Adrienne van Veen.

11 weeks
It also turns out form the requested documents that the review time toke an average time of 11 weeks. This is way much longer than the 6 weeks the Tax Authorities aimed at.

A spokeswoman for Wiebe calls the criticism of Van Veen nonsense. "There is absolutely no massacre going on right now. At this moment matters are being revealed where the question is whether a person is self-employed or is working on a permanent (employed) basis. This is exactly what the Act DBA is meant for," said the spokeswoman.

Wiebe is therefore just the next few months with the pulse of industry associations Act DBA, while keeping a close finger.

Good advice needed
Because of the above mentioned matters it is always wise to consult an expert to see wether your contracts are DBA proof as a ZZP'er or small business. This can help you avoiding repairing contracts which are made already and most of all safe you lots of money and frustration.

Tax & Service Solutions is your partner when it comes to all tax matters and helps you making the right choices and contracts. More info can be found at https://www.tssolutions.nl

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News from the Dutch Tax Authorities

General Dutch (Tax) NewsPosted by Mike de Gruijl Thu, September 01, 2016 11:49:41

News from the Dutch Tax Authorities

From September 1 2016, The Dutch Tax Authorities are going to send seven (extra) messages for the first time digitally to the My Government (Mijn Overheid) inbox of every individual tax payer in The Netherlands.

There are seven new types of decisions/letters to income and starting from the year 2014.

The following messages are now sent digitally:

- The official tax assessment

- Subsequent recovery assessment

- Automatic reduction assessment

- Statement on the objection

- Decision on refunds

- Carry Back

- Request for official (next/decrease) provisional assessment

All messages are still sent on paper for at least 2 years.

More and more digital

Step by step The Dutch Tax Authorities will send more messages digitally. The invitation for filing your declaration, the provisional assessment and the final assessment of income have already been sent digitally. With this extension of digital services, taxpayers are increasingly creating a digital tax administration with the help of the tax authorities.

More information can be found at Tax & Service Solutions

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