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2021 Law & Regulations Changes NL/DE

One month in 2021 and the new year has brought changes to the way business is done. Many law and regulations have become effective, Yan Incorporation has compiled a list pertaining to the Netherlands and Germany ranging from general to tax modifications.


NL

Tax

The corporation tax rate in the lower level has decreased from 16.5% to 15%. It will be applied up to the 245.000 € of income.

If you are investing in innovative activities, you may use the Innovation Box (requirements to be fulfilled) on your corporate income tax return. The tariff has been raised to 9%.

If you are investing in job-related activities, you may offset part of the expenses against your payroll taxes. Although temporary, this measure is expected to be later be extended in a more clear form.

Private business ownership allowance has been reduced from 7,030 euros to 6,670.

Corona measures, like delays in payments, are still in place in 2021

Companies are no longer allowed to offset 100% of their profits against previous losses.

Big companies are expected to pay withholding tax on outgoing interest and royalties.

Staff

A residence arrangement has been introduced for essential foreign personnel of young innovative companies.

The gross amount for the legal minimum wage has increased (Statutory age 21: €1,684.80 per month, €388.80 per week, €77.76 per day)


Professional services

Tax advisers, accountants have the obligation to report cross-border transactions in an effort to combat tax evasion.


DE

Most big changes have benefitted the working class and the population as a whole. As from January 1st, 2021, the government scrapped most of its taxes. When looking at business in general, large corporations have been negatively affected to a certain extent, for example by the introduction of regulations on mergers and antitrust. The most important news for entrepreneurs are:

Tax

VAT rises again to 19 and 7 for their respective products. The cut was introduced to curb the pandemic effect on the economy.

Staff

The statutory minimum wage rose from 9.35 euros to 9.50 euros per hour. An increase is planned around July.

In need of guidance for business in general? Plan a consultation with us https://www.yanincorporation.com/businessplanning


References

https://business.gov.nl/changes-law-and-regulations-1st-quarter-2021/

https://www.thelocal.de/20210108/what-you-need-to-know-about-tax-changes-in-germany-in-2021


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