Measures for employers
The plans for the coming year were officially announced on Prince’s Day. Mazars created a list of the most important (fiscal) proposals from the 2020 tax package for you. What’s changing for you?
WKR: free space increased
Within the work-related expenses scheme (WKR), employers have a free space they are free to spend on compensation and benefits to employees, even if there is a private benefit. Think, for example, of canteen meals or small bonuses. This free space for employers now amounts to 1.2% of the total fiscal salary of all employees. A two-bracket system is introduced to increase the free space. This means that the free space will amount to 1.7% of the wage bill for a fiscal wage bill of up to and including € 400,000. Over the remainder of the wage bill, the free space remains 1.2%. This creates more space, for example, for organising staff parties elsewhere.
WKR: exemption VOG fee
For a number of professions, employees are required by law to submit a Certificate of Good Conduct (VOG) to the employer. Even if they are not obliged to do so, employers regularly ask for a VOG. Many employers then reimburse the application costs. In order to prevent the employee from having to pay a levy on that allowance, they charge the allowance to the free space (in the WKR). Reimbursement of the costs incurred by the VOG to the employee will qualify as a specific exemption, and as a result of which it will no longer be borne by the free space.
WKR: later tax return and remittance of final levy
If employers owe a final levy in a certain calendar year due to exceeding the free space (in the WKR), they must currently indicate this no later than in the return for the first return period of the following calendar year. This period shall be extended to the second return period. This gives employers more time to determine the excess.
Valuation of own company products
The employer must now determine the value of products from his own company on the basis of the amount to be charged by the employer to third parties. This amount need not be equal to the real economic value. In order to bring the valuation of the product from own operations in line with the targeted exemption of 20%, the value of the product from own operations is set at the real economic value.
Systematics of the R&D application adapted
The number of times a year when an R&D (Research & Development) statement can be requested is increased from three to four. The deadline for submitting an application will also be set on the day preceding the period to which the application relates, instead of one month preceding that period. For applications relating to the period starting on 1 January of a calendar year, the deadline for submission is set at 20 December of the previous calendar year.
Indexing volunteer scheme
Since 1 January 2019, individuals working as volunteers can receive a tax-free allowance of up to € 170 per month and € 1,700 per calendar year. The organisations for which the volunteers carry out activities are therefore not required to withhold or pay taxes and contributions on that amount. These ceilings shall be indexed annually starting from 1 January 2020. The maximum amount will be arithmetically rounded off to a multiple of € 100 per calendar year.
Want to know more?
Would you like to know more about the 2020 Tax Plan, the proposed changes and what this means for you? If so, please contact us via email or by phone: +31 (0)88 277 15 00. We would be happy to assist you.