De voor Nederlandse bedrijven belangrijkste punten in het Brexit-akkoord zijn:

1. Voorlopig geen extra handelstarieven

Het VK blijft na het officiële vertrek uit de EU op 29 maart 2019 voorlopig in de interne markt. Deze transitieperiode duurt tot eind 2020. Voorlopig komen er dus geen extra handelstarieven. Het VK en de EU onderhandelen in de transitieperiode over nieuwe handelsafspraken. Komen ze er niet op tijd uit, dan kan de transitieperiode eenmalig met nog eens maximaal twee jaar worden verlengd.

2. EU-regels volgen, minder controles

De EU wil 'onnodige' handelsbelemmeringen wegnemen, maar dat hangt af van de bereidheid van de Britten om zich te houden aan de regels van de EU. Hoe meer regels het VK volgt, hoe minder checks en controles er aan de grens nodig zijn. Hoe hecht de handelsrelatie tussen de EU en het VK wordt, is dus nog niet duidelijk. De Britse politiek zal zich ook hierover nog moeten uitspreken.

3. Visserij komt later

In het uittredingsakkoord is opgenomen dat tijdens de transitieperiode tot eind 2020 voor de visserij alles bij het oude blijft. Dit betekent dat Europese vissers in die periode mogen vissen in de Britse wateren. Hoe de visserij in Britse wateren eruit zal zien na 2020 zal worden uitonderhandeld tijdens de transitieperiode.

4. Geen belemmeringen werknemers

Voor mensen uit de EU die nu in het VK werken, verandert er niets. Dit geldt ook voor Britten die in de EU werkzaam zijn.

Hoe nu verder?

Als het Britse Lagerhuis instemt met het conceptakkoord, dan beginnen de dag na het vertrek van de Britten op 29 maart de onderhandelingen over de toekomstige relatie tussen de EU en het VK. Als er een parlementair 'No' komt, dan is er geen akkoord en vertrekt het VK zonder afspraken uit de EU.

Tip! Ondanks dat er nu een conceptakkoord ligt, blijft er veel onzeker en een harde Brexit is nog niet van de baan. Bereid u dus voor en kijk welke gevolgen dat voor u kan hebben, bijvoorbeeld met de Brexit Impact Scan of via www.hulpbijbrexit.nl.

The Euro Vignette (that The Netherlands continues to use) will therefore be phased out. The kilometer fee may only be based on distance, and not on time.

Caution! Even with this new ruling each country can still determine for themselves whether they implement a kilometer fee.

Extra toll

The possibility of congestion charges – extra costs for using busy roads that often experience traffic jams - is also under discussion. Vehicles that produce little or no emissions are eligible for a discount on any congestion charges that they are obliged to pay.

Peter van Dalen, member of the Transport Commission of the European Parliament, supported this proposal: "More freight should be transported by rail and canal. These are environmentally friendly methods of transport. The waterways offer great opportunities for congestion free haulage. The European Parliament is focusing on multimodal transport that has lower CO2 emissions. Above all, infrastructure usage will be taxed more fairly, based on kilometers driven and not on time."

Caution! Kilometer charges are now only allowed to be levied per kilometer, and not on time.

Delivery vans as of 2027

The current regulations for delivery vans will apply until the end of 2027. This is limited to lightweight delivery vans. Vans of 2.4 tons or more will have to pay the kilometer fee as of 2023. 

Source: ttm.nl

Heading towards 'Flat Tax'

These rate adjustments reveal that the Cabinet is shifting towards a flat tax rate, or a taxation system with the same rate for everyone. This is not something that is currently ready for implementation. However, as of 2021 there will only be two tax rates, 37.05% and 49.5%.

Rate adjustments in 2019

The tax rates will start to change in 2019. The first tax bracket, applying to incomes up to €20,142, will increase by 0.1%-punt from 36.55% to 36.65%. The rates for the second and third brackets, covering incomes between €20,142 and €68,507, will decrease significantly, from 40.85% to 38.1%. Currently those earning over €68,507 pay a rate of 51.95%. Next year this will be reduced slightly to 51.75%.

What are the effects on net income?

Next year someone with an income of €35,000 will benefit from these changes by paying €380 less tax. Those on higher salaries will benefit more. Someone with an income of €65,000, for example, will enjoy a saving of €1,215. Those on an income of up to €20,000 will pay a maximum of €20 more in tax.

Two brackets as of 2021

From 2021 there will be just two tax brackets in box 1. A rate of 37.05% will apply to those on incomes up to €68,500. Incomes exceeding this amount will be taxed at a rate of 49.5%.

                Tax % in box 1

             Income of max € 20.142       Income of max € 34.404    Income of max € 68.507  Income > € 68.507

2018      36.55                                    40.85                                    40.85                                51.95

2019      36.65                                    38.10                                    38.10                                51.75

2021      37.05                                    49.50

Warning! The switch to two tax brackets in box 1 will only apply to those who are not yet entitled to AOW. For those entitled to AOW different rates will apply. Three brackets will continue to apply to those eligible for AOW.

Top rate frozen until 2024

Due to inflation and other factors, the tax rates will be indexed annually. Until 2024 this will not apply to the starting point of the top rate. This will remain frozen at the current level of €68,507. Taxpayers will therefore reach the top rate earlier. The expected result of this is that around 7% of taxpayers will be taxed at the highest rate. Without this freezing only 5.5% of taxpayers would be taxed at the top rate.

Compensation for every employer

The government agreement had established that the ruling concerned small employers. It was subsequently decided that larger employers would also be considered. Every employer can make use of the ruling if they meet the conditions. This will make the procedure more affordable.

Transition compensation

Employers are required to pay transition compensation to any employee who is dismissed after two years of sickness or disability related absence. This compensation must be paid by the employer, and the maximum permitted amount is equivalent to the salary that was paid during the two years of illness. The purpose of this regulation is to limit the costs of prolonged absence and dismissal on the employee. It is also intended to prevent long term dormant employment contracts.

Starting date

You can apply for compensation from the UWV from the 1st of April 2020, provided that the application is made within 6 months of the payment of the complete transition compensation. Compensation can be applied retroactively to transition payments that were made from 1st of July 2015 onwards. This is possible between the 1st of April 2020 and the 30th of September 2020. These dates were confirmed after discussion with the UWV. In this discussion the UWV made it clear that they needed time to prepare for this regulation.

A brief explanation of the most notable changes in the area of taxation is provided below.

Please note! The Upper and Lower House still have to vote on these changes.

1. Income tax: introduction of two-band system

From 2021 there will be only two instead of four bands for income tax (for people below state pension age). The basic rate of 37.05% will then apply up to an income of € 68,507. Above this threshold the top rate of 49.5% will apply. In 2019 the current rates of 36.55%, 40.85% and 51.95% will be changing to 36.65%, 38.10% and 51.75%.

Under the new system, from 2021 people of state pension age will continue to be subject to different rates, as is the case now. These new rates will be 19.15%, 37.05% and 49.5%.

2. Box 2 rate rising less sharply than expected 

The rate of income tax in box 2 applicable to income from substantial shareholdings will increase to 26.25% in 2020 and 26.9% in 2021. This increase is lower than that previously announced in the coalition agreement (to 27.3% and 28.5% respectively). The current rate is 25%.

3. Employed person's tax credit

Over the next few years the employed person's tax credit will be increased incrementally, up to a maximum of € 3,941 in 2021. From 2019 it will be reduced to zero from an income of € 36,344. The aim of this rise in employed person's tax credit is to make work (or working more) pay.

4. Increase in reduced rate of VAT to 9%

With effect from 1 January 2019 the reduced rate of VAT will increase from 6% to 9%. This rate applies to foods, sporting activities and recreation, for example.

5. Top rate of corporation tax of 22.25%

In the coalition agreement the governing parties agreed to reduce the rate of corporation tax. For taxable amounts (profits) up to € 200,000 the rate of corporation tax will be reduced from 20% to 19%. It will be cut further to 17.5% in 2020 and to 16% in 2021.

However, the rate of corporation tax applied to taxable amounts above the € 200,000 threshold will not be reduced to the previously agreed level of 21%, but will be a maximum of 22.25% in 2021. In 2019 this top rate of corporation tax will be lowered to 24.3%.

6. Reduction in level of depreciation permitted for commercial property

The permitted depreciation of property used by a company for its own purposes is being restricted for purposes of corporation tax. At present such property may be depreciated down to 50% of its WOZ value (value for the purposes of the Valuation of Immovable Property Act). With effect from 1 January 2019 it may not be depreciated below 100% of its WOZ value.

Example: let's assume that the WOZ value of a property is € 1,000,000 and the book value is € 900,000. Previously, it was possible to depreciate this property down to 50% of its WOZ value, i.e. to € 500,000 in this example. Under the new plans it will no longer be permitted to depreciate it below the WOZ value, which means that no further depreciation is possible in this example.

Please note! This measure only applies to entities subject to corporation tax.

7. Offsetting of losses limited for corporation tax purposes

In 2019 losses for corporation tax purposes may only be carried forward and offset against profits for six years instead of nine. Losses incurred before the 2019 financial year may still be carried forward and offset against positive results for nine years.

8. Abolition of dividend tax and introduction of withholding tax

In spite of the considerable controversy surrounding the issue, dividend tax will be abolished from 1 January 2020. The main reason for abolishing this tax is to increase the attractiveness of the Netherlands as a location for international businesses.

The introduction of a withholding tax on dividends from 1 January 2020 is intended to prevent tax avoidance. This will mean that intercompany dividend payments made to entities in low-tax countries will be taxed. The same will apply in the event of abusive practices, according to the Budget Memorandum.

A withholding tax on interest and royalties will also come into force from 1 January 2021.

9. 7% addition to taxable income for company bicycles

The current scheme for determining the private use of a company bicycle is being simplified by introducing an addition to taxable income based on a fixed percentage with effect from 1 January 2020. This addition will amount to 7% of the recommended retail price set by the manufacturer.

10. Maximum duration of 30% scheme reduced

With effect from 1 January 2019 the duration of the 30% scheme for employees from outside the Netherlands is being reduced from eight to five years. There will be no transitional arrangements, which means all current schemes will also be shortened by three years.

All current decisions by the tax authorities relating to the scheme that are valid up to and including 1 January 2022 will lapse with effect from 1 January 2019. As a result, the tax-favourable scheme under which such employees can choose to be treated as foreign taxpayers for a portion of their income will also be discontinued from 1 January 2019.

VAT increase

The increase in the lower rate of VAT applies to essential supplies such as food and beverages as well as books and magazines. Some services are also included, such as hairdressing, shoe repairs and bicycle maintenance. Other affected services include hotel stays, sauna visits and public transport. 

The consumer price for these goods could be increased by 3% due to the planned VAT increase. (109/106 = 2.8).

Price adjustment

If you sell one or more of these products or services, you will more than likely need to adjust your prices. Just like other businesses, you will need to take this inflation into account in your new prices as of 1st January 2019.

Administrative considerations

Your administrative procedures will also have to adjust to these changes. Your bookkeeping records should show the quantity of goods and services that you currently sell at the lower VAT rate and what consequences this increase will have on your VAT payments. The same will apply to your purchases to which the lower VAT rate applies, and the subsequent deductions.

Updating invoices

The VAT increase will need to be reflected in your invoicing, to ensure that the correct VAT rate is always calculated. Accidentally applying the incorrect rate to invoices causes your company an extra tax burden.

No additional tax on previous invoices

Have you already sent invoices for goods and services that will be supplied in 2019? It is not necessary to pay the difference between the old and new VAT rates. There is also no need to adjust your administration for this, or to send new invoices.

Warning! The increased VAT rate will need to be applied to all your proposals for relevant products or services that will be provided after January 1st 2019.

1. Changes to minimum wage

The amounts specified as the minimum wage apply to an entire working week. This is usually 36, 38 or 40 hours per week. This depends on the sector where your company operates and any possible CAO arrangements in this sector. As of July 1st, the minimum wage will be 1.03% higher than in the first half of 2018.  This raises the gross minimum wage to €1,594.20 per month, €367.90 per week and €73.58 per day.
A lower minimum wage applies to younger people, as shown in the table below.

Age    Per month    Per week    Per day  22 and older    € 1,594.20    € 367.90    € 73.58  21    € 1,355.05    € 312.70    € 62.54  20    € 1,115.95    € 257.55    € 51.51  19   € 876.80    € 202.35    € 40.47  18   € 757.25    € 174.75    € 34.95  17   € 629.70    € 145.30    € 29.06  16   € 550.00    € 126.95    € 25.39  15   € 478.25    € 110.35    € 22.07  2. Increased checks on freelancers

If you hire a third party, or they make themselves available to you as an independent service provider, there is a risk that the tax authorities see the agreement as employment. This can be the case during long term assignments. You can prevent this by working with an agreement template.

The tax authorities have made it known that no exceptions will be made, and fines will be issued if no taxes or insurance contributions are made while there is evidence of employment. The tax office will enforce instances of malpractice. As of July 1st 2018, the authorities will no longer only focus on the most serious cases, but on other instances too. The tax authorities can punish malpractice of they can prove any of the following:

• There is evidence of (fictional) employment
• There is evidence of bogus self-employment
• There is evidence of deliberate false self-employment

3. Working Conditions Act: transition period to end

As of 1st July 2017, a new Working Conditions Act came into effect. An example of a change is that employers now have the right to anonymously refer an employee to a company doctor without their consent, even if there is no evidence of illness or absenteeism. There is a transition period of 1 year for employers, allowing existing contracts detailing working conditions to be adjusted.  During this transition period existing contracts can be renewed or provided with a supplement. This transition period expires on July 1st 2018, and from that date onwards all employers must be aligned to the new demands of the Working Conditions Act.

4. Legal deadline regarding vacation days

If your staff still have outstanding vacation days from 2017, these must now be used by July 1st 2018, as per the new rules. If not, they will be forfeited, unless an exemption applies.

In the following cases the unused vacation days will be forfeited after 5 years:

• If the employee was not able to take the vacation days in time. For example, due to illness, or because the employer made it impossible for the employee to take a (or enough) vacation. 
• If the employee has more vacation days than legally stipulated.

5. Commencement of own risk bearing WGA

You can become an own risk bearer for the WGA (Werkhervatting Gedeeltelijk Arbeidsgeschikten – work resumption for the partially disabled). This means that from the start of the WGA insurance you carry the risk for partial inability to work and temporary complete inability to work of your (ex) employee, or that you insure this privately either fully or partially. You also carry the risk for death benefit payments of one-month WGA to relatives of employees with a WGA insurance who fall under the own risk clause.

Because you accept these risks as a risk bearer for the WGA, you do not have to pay the premium component WGA of the sector premium (WHK).

You are required to submit a request to become an own risk bearer for WGA to the tax authorities. You can begin bearing the own risk for WGA on either January 1st or July 1st. Your request must be received by the tax authorities at least 13 weeks prior to the commencement date. If you are considering becoming an own risk bearer as of January 1st 2019, you would need to submit your request by October this year. It is wise to determine in advance if this action is interesting and if you can meet the conditions that are applied. We are of course happy to assist with this.

On balance, more companies saw profits stabilize or increase, but the overall size of the profit increase decreased again last year. This has primarily been caused by the strong increase in personnel costs. 27% of the total SME revenue was spent on staffing costs.

These are the findings of the new SRA report 'Overview of Sectors in 2018: the hard data of Dutch companies'.

Increase in personnel costs

In 2017 the increase in personnel costs was measured at 8%. This compared less favorably to previous years (6% in 2016, 3% in 2015 and 2% in 2014). Salary costs increased by 9% (compared to almost 6% in 2016) and social insurance costs increased by 10% (6% in 2016). Salary costs increased in industry and healthcare especially, as relatively expensive personnel are present in these sectors. The hospitality sector is more focused on cheaper employees and has therefore limited the increase in costs. On balance the construction industry has seen a strong growth in personnel costs compared to other sectors.

Personnel costs influence profits

In general, increasing personnel costs have ensured that SME profits have lagged behind the increase in revenue. The growing staff shortage means that we can expect these costs to continue to increase in 2018. Personnel costs do not only refer to employee salaries. Indirect costs must also be considered, especially the social insurance that employers are required to pay. Personnel costs form one of the most determining factors in the competitivity of companies. If salary costs continue to grow in 2018 without compensatory reductions in taxes and social insurance premiums, SMEs can expect the decrease in profitability to continue.

Stronger position

Financially speaking, the SME sector has had a good year. Solvability has improved significantly, and shareholder equity increased in total by 17.5%. The healthcare sector, industry, logistics and commercial service providers have all seen a strong growth in equity. The abolition of internal pensions probably also played a part because part of those pension provisions went to equity. On balance, short-term debts rose by 3%, indicative of additional investments being made. On balance, income and expenses decreased by almost 15%, due to the lower interest costs of loans.

Differences in regional performance

In 2017 revenue growth was positive across all regions. The rankings were topped by Overijssel, Gelderland and Flevoland, with the Southern provinces of Zeeland, Noord-Brabant and Limburg collectively seeing a lesser increase in revenue. Profit figures in Limburg were good, due to a lower than average growth in company costs. Personnel costs increased most in Overijssel, Gelderland and Flevoland (+9%). In the four largest cities (+2,7%) the increases in personnel costs were remarkably small.

Recovery of industry and the automotive sector

Industry and the automotive sector displayed a remarkable and convincing recovery in 2017. Construction continues to perform well, with a revenue growth that accelerated to 12.7%. Profits slowed down, but they are still above average. The healthcare sector also had a good year. Companies in logistics saw a slowdown in revenue, but their profitability improved strongly. The retail sector and specialist service providers clearly lagged behind.

No interest on tax

For tax assessments on death inheritance from 1st January 2017 these problems mean there is currently no interest on tax. This was confirmed in a letter to the Second Legislative Chamber by Secretary of State Snel from the Ministry of Finance. According to Mr Snel, these measures will apply 'as long as necessary'.

Tax assessments have been delayed

The setup of a system to assess inheritance tax has also been delayed. This also applies to demands for tax on gifts received in 2017. The date that you will receive such demands will depend on whether you have applied for an exemption for your own home. For housing, there is an additional exemption of € 100,000 under the terms of the rules on gift tax.

If you have requested such an exemption, you will receive a definitive assessment no later than 2021. If you have not requested this exemption you will receive the definitive assessment at the end of 2019. 
You will first receive a provisional gift tax assessment, based on your own declaration.

Online declaration

The delay regarding gift tax assessments was caused - among other things - by the fact that online declarations can now also be made. Automation problems have also emerged here.

If you would like more information about the processing of inheritance and gift tax assessments, please contact us.

Minister Van Nieuwenhuizen: "The Netherlands is a trading nation. A great deal of freight transport crosses our borders with our neighbors to the south.  Digital waybills make crossing the border easier, safer and cheaper for freight. This will also save € 80 million per year in administration costs for Dutch companies."

Important! This trial must be part of a wider initiative towards the use of digital waybills throughout Europe.

Until now a paper document was always required regarding the loading of a delivery truck. It has not previously been possible to use a digital waybill (e-CMR) in The Netherlands. To participate in this trial, freight companies must work with software from a recognized provider. The trial must be part of a wider initiative to use digital waybills throughout Europe. It is of great importance to the Dutch transport industry that other countries such as Germany, Italy and Austria accept digital waybills in the future.

Cheaper and safer

In The Netherlands alone some 40 million waybills are used each year. The transfer to a digital waybill system would save transport firms and their clients around € 4,50 per waybill. The chance of making errors on a digital waybill is also lower than with paper. The information is stored centrally and can be requested and accessed at any time.

Environmental sustainability and more insight into cargo

Switching to digital waybills is great news for the environment as it will save around 600 trucks full of printed paper each year. It also enables possibilities for track & trace, with which customers can see the location of their shipment at any given moment. In this way they can adjust their planning appropriately. Another advantage is that emergency services can quickly identify the contents of trucks. In the event of an emergency they can immediately ascertain if there are hazardous materials present.

Source: Rijksoverheid.nl