Prinsjesdag 2021: what does that mean for you as an entrepreneur?

Prinsjesdag 2021: what does that mean for you as an entrepreneur?

Written by: Michiel Brouwer
In line with tradition, the state budget was presented yesterday on the third Tuesday of September ‘Prinsjesdag’. Because we currently have a resigning cabinet, there are few big plans this year. However, there is certainly something to report for entrepreneurs. What should you keep in mind in the near future? Here is a list of the most important things.

1. Private business ownership allowance
The phasing out of the Private business ownership allowance had already started last year. In 2022, this deductible item will be reduced by another 360 euros, from 6,670 to 6,310 euros. At first sight this means less tax advantage. However, this reduction will be compensated by the reduction in income tax and the increase in tax discounts, so that on balance the self-employed will benefit in terms of purchasing power.

2. Income Tax
The rate in the first bracket of income tax (incomes up to 69,398 euros) decreases from 37.10% to 37.07%. Ultimately, this rate will decrease further to 37.03% in 2024. This change is expected to take effect on January 1, 2022. Because the lowest rate will be reduced, everyone will benefit.

3. Additional fee electric car
If you have an electric car at the company and you also use it privately, you have to pay an additional fee. The additional fee for private use will increase from 12% to 16% in 2022. This increase applies to the first 35,000 euros of the list value of the car. Is the catalog value higher? In that case, the rate for the remaining amount is 22%. This is the same rate as for non-electric cars.

4. Education deduction
Under certain conditions, educational expenses are deductible in the income tax return. From 2022, the Subsidy Stimulans Arbeidsmarkt Position (STAP) will replace this tax deduction. The amount of this subsidy depends on the costs of the education and the course or training. There is a maximum of 1,000 euros per person per year.

5. Climate subsidies and schemes
The government is allocating 6.8 billion euros to reduce CO2 emissions. The government wants to encourage entrepreneurs to invest in innovative, environmentally friendly business assets by means of the Environmental Investment Allowance (MIA). Consider, for example, the purchase of an electric (cargo) bike at the business. With the MIA, companies are allowed to deduct a percentage of the investment costs from their profits, with the result that less income tax has to be paid. The MIA now has three percentages: 13.5%, 27% and 36%. From 1 January 2022, the cabinet will increase this to 27%, 36% and 45%. A higher discount, therefore, makes environmentally-friendly investments more attractive.

6. Contribution to the Health Insurance Act
The contribution to the Health Insurance Act for entrepreneurs depends on your income. In 2022 this percentage will decrease from 5.75% to 5.45%. This is always paid at the same time as the income tax return.