Today is Prinsjesdag, and the outgoing government has announced its tax plans for 2022. The 2022 Tax Plan package is considerably less extensive than in previous years. This is due to the outgoing status of the current government. In this article, we briefly outline the aspects that appear most interesting at first glance.
Tax-free allowance for working from home
Due to the coronavirus pandemic, many employees worked from home over the past year. Many employees and employers wish to make arrangements to continue working partly from home even after the coronavirus pandemic. From 1 January 2022, it will be possible to provide a tax-free home-working allowance of up to €2 per day to employees working from home. The tax-free travel allowance of up to €0.19 per kilometre for commuting will remain in place for days when the employee is not working from home. Employers and employees can agree on the number of days worked from home. The travel allowance does not need to be adjusted if, on the odd occasion, an employee works from home on a day they are due to be in the office, or vice versa.
Home Ownership Scheme
With effect from 1 January 2022, the owner-occupied home scheme will be amended in a number of respects. The main aim of the changes is to remove unintended restrictions on mortgage interest relief.
Transfer tax
At the start of 2021, the rates for transfer tax were adjusted. A rate of 2% applies to the purchase of a main residence, unless the first-time buyer’s exemption (0%) can be claimed. For buyers who do not intend to live in the property themselves, a rate of 8% applies. This year, housing associations and property developers are also paying 8% in transfer tax on so-called ‘VoV’ properties (sale subject to conditions) that are being bought back from private individuals. From 1 January 2022, no transfer tax will be payable on these properties. This ensures that these properties remain affordable for the next private buyer.
Taxable benefit for zero-emission cars
Sales of zero-emission cars, such as electric and hydrogen cars, will continue to be encouraged in 2022. The discount on the additional tax liability will remain in place until the end of 2025. The maximum value of the car to which the additional tax liability discount applies – the so-called ‘cap’ – will be reduced. From 1 January 2022, the 6% reduction in company car tax will apply to a cap of €35,000, and from 2023 onwards to a cap of €30,000. This will make cheaper zero-emission cars more attractive to both the business market and private individuals.
Environmental investment allowance (MIA)
In addition, businesses are encouraged to invest in environmentally friendly assets. Thanks to an increase in the Environmental Investment Allowance (MIA), businesses can deduct more costs from their taxable profit. The deduction rates will be increased with effect from 1 January 2022 from 13.5%, 27% and 36% to 27%, 36% and 45%.
Start-ups
Start-ups often offer share options to employees instead of a regular salary. Tax is currently levied when the employee converts the share options they have been granted into shares. From 1 January 2022, upon request, tax will only be levied once the shares are tradable and sufficient funds are available.
Set-off of corporation tax
From 1 January 2022, it will no longer be possible to claim back withholding tax (dividend tax and gambling tax) without further ado. For companies, offsetting against corporation tax (CIT) due is the only option remaining. This means that if no corporation tax is due in a given year, no refund will be made. Any withholding tax that has not been set off may be carried forward to subsequent years without any time limit.