The last working day of the year is a good opportunity to take a moment to look back with you at the key events of 2016.
For a whole year, we have kept you up to date with the latest developments in our field. And looking back now, we can see that a number of the topics that featured frequently in our articles will undoubtedly resurface in 2017 as well.
Old = New and New = Old!
Self-administered pensions have not (yet) been abolished
At the very end of the parliamentary year, at the request of State Secretary Wiebes, the bill on the phasing out of self-administered pensions was not put to a vote in the Senate. Wiebes is to investigate the extent of the loophole in the bill that he himself created. He will then close this loophole with a supplementary bill – an amendment.
It is unclear exactly when the self-administered pension scheme will be abolished. It cannot even be ruled out that the entire phase-out may not go ahead. Wiebes has, however, indicated that the other parts of the ‘Phase-out of Self-Administered Pensions’ bill will come into force in 2017, with retroactive effect from 1 January 2017.
ZZP-ers
The abolition of the Declaration of Employment Relationship (VAR), which was popular with self-employed workers and their clients, came into effect on 1 May 2016. However, its replacement – in the form of (model) agreements approved by the Tax and Customs Administration – has not yet really got off the ground. Enforcement of this system has been suspended until 1 January 2018 (or as much later as necessary). Only those who are clearly acting in bad faith will be dealt with (in principle, from 1 May 2017).
Volunteers
The volunteer scheme was also discussed on a number of occasions in 2016. Once again this year, there was no prospect of broadening the scope for providing tax-free allowances and benefits to volunteers. The now familiar limits remain €1,500 per year and €150 per month.
At the end of 2016, a measure that had already been introduced in August by a court The judgment has been published, stating that the terms of the volunteer scheme must be strictly adhered to.
Donations and gifts
The subject of gifts and donations tends to attract a great deal of interest every year. Naturally, the discussion centred on the reintroduction of the “jubelton” – the gift tax exemption of (up to) €100,000, provided that the amount gifted is spent on the donor’s own home.
For directors and major shareholders, pursuant to a ruling issued in 2016, approval the opportunity to streamline the tax treatment of charitable donations.
Cars
Cars are always a popular topic, both for the self-employed and for employees. From 2017, the additional tax liability for payroll and income tax will be simplified somewhat. Whether it is best to buy a new car in 2016 or whether it would be better to postpone the purchase until 2017 depends on the car you wish to buy.
The transitional arrangement means that we will still have to grapple with a jumble of additional tax rates over the coming years. The latest idea, put forward by the Bovag, is that the additional tax liability should be based on the number of private kilometres travelled.
For those who use their own car for business travel, the maximum tax-free allowance remains at €0.19 per kilometre. This must cover all costs, including, for example, car parking.
The Association of Business Drivers has floated the idea of reducing this to €0.22. We reckon this is unlikely to gain any traction in The Hague for the time being.
The rules governing VAT adjustments, which you must include in your final interim return for 2016, have not changed. The test cases brought on this matter are still pending before the Supreme Court.
Business succession
The maximum exemption under inheritance and gift tax remains unchanged. It will be left to the next government to make adjustments to this scheme. We consider it highly likely that the exemption will be reduced. Where appropriate, it would therefore be wise to make use of this exemption in the coming year.
The business succession scheme is particularly attractive to property entrepreneurs. However, when seeking to apply the exemption, these entrepreneurs almost always find the tax authorities standing in their way. The practical guide The criteria applied by the Tax and Customs Administration in this context were recently made public following a Freedom of Information Act request.
VWGNijhof wishes you and your loved ones all the very best for 2017!