On 15 December 2020, the Senate approved all the bills relating to the 2021 Tax Plans. The Ministry of Finance has issued a overview a summary of the main changes.
BIK
This means that the Job-Related Investment Allowance (BIK) is being introduced. The allowance amounts to 3.9% (above €5,000,000: 1.8%) of the investment amount. The BIK is intended to stimulate investment.
The tax consolidation scheme is still subject to approval by the European Commission. If approval is not granted, the BIK rates will be increased. The allowance will then amount to 5% on the first €5,000,000 of investment and 2.08% on any amount above that.
Would you like to know exactly how the BIK works? Read our factsheet.
In a letter On 28 May 2021, the State Secretary for Finance announced that the bill intended to regulate the BIK had been withdrawn.
The BIK will therefore definitely NOT be introduced.
Tax-exempt gifts
The gift tax exemptions apply on a calendar-year basis. You can therefore make a tax-free gift at the end of 2020 under the 2020 exemption and, immediately at the start of 2021, under the 2021 exemption. The exemptions for children and other beneficiaries have been increased by an additional €1,000 on a one-off basis in 2021.
| 2020 | 2021 | |
| Children | € 5.515 | € 6.604 |
| Children aged 18–40: one-off | € 26.457 | € 26.881 |
| The same applies to a one-off study fee) | € 55.114 | € 55.996 |
| The same applies to a property (one-off) | € 103.643 | € 105.302 |
| Other acquirers | € 2.208 | € 3.244 |
Would you like to find out more about exemptions from gift tax? Read our factsheet.
Box 3 (income from savings and investments)
As is the case every year, the Ministry of Finance’s overview consists of a range of minor changes to rates and exemptions. We won’t bore you with the details.
In 2021, a higher tax-free allowance will apply to income from savings and investments (Box 3): €50,000 per tax partner (compared with €30,846 in 2020). However, the flat-rate tax rates remain substantial, particularly for those with savings:
| Assets in Box 3 (above the tax-free allowance) | Flat rate of return | |
| Disc 1 | up to €50,000 | 1,90% |
| Disc 2 | from €50,000 to €950,000 | 4,50% |
| Disc 3 | over €950,000 | 5,69% |
The rate in box 3 will be increased slightly: from 30% to 31%.
In many cases, it is still worthwhile to transfer assets taxed under Box 3 to a savings-type private limited company. See also our article Can the savings company be dissolved?
Transfer tax
You pay this tax when you acquire a property. The rate will increase from 6% to 8% with effect from 1 January 2021. For properties valued at up to €400,000, a lower rate applies: 2%. And you must live in the property (if you buy a holiday home, you pay 8% in transfer tax).
The SRA has asked State Secretary Vijlbrief to postpone the implementation of this measure.