What do the Budget Day plans mean for FHI members?

The 2021 Budget Memorandum is different this year than in other years. This is because we are currently in the middle of the corona crisis, which is having an impact on the Netherlands both economically and socially. The government has chosen to invest heavily in this budget with the aim of emerging from the crisis in a better financial position.

By: Jesse Markus

The gist of this Budget Day is that more money will be spent. Where in the past crises were resolved through cutbacks, investment is currently the adage. A striking fact because the corona crisis is currently leading to a historically high budget deficit of -7.2 percent of gross domestic product (GDP). This is accompanied by a decline in the economy of 5 percent, but (unless there is no new lockdown) an expected growth of 3.5 percent in 2021.

This means that the economy will not fully recover next year, but the government recently introduced the support package for this purpose extended. The main aim of this package is to maintain employment. The Budget Memorandum provides the other way out of the crisis: the investment package. What exactly are these measures? And which ones are most important to you as an FHI member?

National CO2 tax for industry

If your company has an industrial installation that falls under the current European emissions system and it emits more than the exempt amount of greenhouse gases, your company must pay an additional CO2 tax as of January 1, 2021. This also applies to installations that emit large amounts of nitrous oxide.

Knowing more? The central government has, through the following link among others one infographic available about the upcoming changes.

New BIK scheme

The Cabinet will introduce the Job-related Investment Discount (BIK) as of January 1, 2021. This stipulates that entrepreneurs can deduct a percentage of an investment made from payroll tax. This measure was taken in the context of combating the corona crisis and is therefore temporary in nature.

The further details of the BIK scheme have yet to be worked out. More information will appear on the next issue this fall website. We will also keep you informed of this.

Retraining for shortage professions in SMEs

From 2021, the government will invest extra in retraining staff for professions in sectors where there is a labor shortage. This could include the long-term shortages of technically trained personnel. In this context, the government also specifically mentions the jobs that will be needed to implement the energy transition. Employers contribute fifty percent to this retraining process.

Want to know more about encouraging students to pursue technically skilled professions? On Monday September 28, FHI organizes the interaction between branches – educational meeting.

New buildings must meet the BENG requirements

Are you an entrepreneur who is having a new building built in 2021? Or are you a construction company? In the new year it is mandatory that new buildings meet the Nearly Energy Neutral Building Requirements (BENG). The energy performance of a commercial property is determined on the basis of three requirements. These can be found on the website of the RVO.

Additional investments in (further) training

The government will release 15 million euros next year to maintain internships and apprenticeships. The Ministry of Education, Culture and Science is also investing 10.6 million euros in the Lifelong Development (LLO) process. Next year, a national digital platform will be built for this with an overview of the training options and the flexibility of MBO.

Increase in innovation box rate

Entrepreneurs who are currently involved in innovative projects (intangible assets) and thereby make a profit, have to pay less corporate tax on this part of the profit. They can benefit from the innovation box under certain conditions. However, the regular corporate income tax rate will be increased from 7 to 9 percent.

Lower profit tax for SMEs

The reduction in the low corporate tax rate will continue. This drops from 16.5 percent to 15 percent. The taxed profit ceiling for companies will also increase from 245,000 euros (in 2021) to 395,000 euros in 2022. In concrete terms, this means that there will be more than a billion euros in tax relief for small SMEs with little profit and that this lower tax burden will be even higher. will be out in 2022. For more information, see the website from the central government about the 2021 tax plan.

Establishment of National Growth Fund

The introduction of a National Growth Fund with the aim of promoting innovation in the Netherlands and perpetuating future economic growth. Read more on our website.

If you have any further questions, please email info@fhi.nl.