With effect from 1 January 2022, the tax deduction for training expenses will be abolished and the STAP-budget grant scheme will be introduced.
Training costs
The deduction for training expenditure. These are expenses incurred in connection with undertaking a course or study programme with a view to earning an income from work and housing.
Expenditure on maintaining existing knowledge remains tax-deductible for a profit-making entity. Furthermore, employers may provide or reimburse these costs to their employees on a tax-free basis (targeted exemption).
STEP
From 1 March 2022, the new scheme can be used for training expenses STAP Budget Grant Scheme. The abbreviation STAP stands for ‘Stimulation of Labour Market Position’.
The grant amounts to 100% of the eligible costs, up to a maximum of €1,000 (including VAT) per year. In the case of multi-year training programmes, the grant is awarded for a maximum of one academic year at a time. The STAP grant will not be awarded if a contribution towards the training costs is received from a third party.
The UWV processes grant applications using an electronic application form, which the applicant accesses using their DigiD. The grant is awarded to the applicant (i.e. the person undertaking the training), but is paid directly to the training provider. The applicant must have a sufficient connection with the Dutch labour market.
An important condition for the grant is that the course must be completed. This is the case when the course has been completed with a diploma or a certificate of attendance, or when an attendance or participation rate of at least 80% has been achieved. If the course is not completed, the training provider will have to repay the grant to the UWV. The training provider will then charge the costs to the applicant.
The eligible costs are:
- tuition fees, course fees, lecture fees or examination fees;
- the costs of learning materials or protective equipment required by the training provider, insofar as these are directly necessary for the training and are charged by the training provider;
- costs associated with an EVC procedure, which are charged by the EVC provider (EVC stands for: Recognition of Prior Learning).
Subsidy ceilings apply to the scheme. Once the ceiling has been reached, no further subsidies will be awarded. Any unused amounts will be added to the subsidy ceiling for the next application period. The subsidy ceilings for 2022 are as follows:
- from 1 January to 28 February inclusive: €0;
- from 1 March to 30 April inclusive: €36,100,000;
- from 1 May to 30 June inclusive: €36,100,000;
- from 1 July to 31 August inclusive: €36,100,000;
- from 1 September to 31 October inclusive: €36,100,000
- from 1 November to 31 December inclusive: €36,000,000.