In this newsletter you will find more information about a special deduction for self employed persons, the new identification rules and the company car.
If you are selfemployed then you can use a special tax deduction called 'Zelfstandigenaftrek' if you meet certain requirements. These are:
The amount of the deduction depends on the business profit you made (figures 2003):
From - Till = Selfemployed deduction
€ 0 - € 12. 550 = € 6.430
€ 12.550 - € 14.555 = € 5.978
€ 14.555 - € 16.570 = € 5.527
€ 16.570 - € 47.455 = € 4.926
€ 47.455 - € 49.460 = € 4.496
€ 49.460 - € 51.475 = € 4.021
€ 51.475 - € 53.480 = € 3.548
€ 53.480 - € unlimited = € 3.119
If you also have other income activities next to your business like a job then you must also spend at least 50% of your working time for the business. This is not necessary if you have started the business in the last 5 years.
If you have just started your business then you can get an extra startersdeduction called 'Startersaftrek' under the following conditions:
- you can claim
the selfemployed deduction;
- you were not having a business in one of the five previous calenderyears;
- you haven't claimed the startersdeduction in these years more than two times.
In 2003 the amount of the startersdeduction is € 1.895.
As of June 1, 2003 tax advisers and accountants have to identify their clients who contact them to do some work for them. This means that the following must be registered:
- Copy of the identity paper (passport or drivers license or registration Chamber of Commerce) including:
first name, date of birth, current address;
b. sort of identity paper, number and date and place the identity paper was created;
c. what kind of service has been requested.
- Every day the client has met the adviser.
The registration has to be made in relation to the fight against money laundry and fraud. Not only banks have this duty anymore but also lawyers, notaries, tax advisers, accountants, business advisers, estate agents and trust offices.
So now you know why you will have to show your identity papers to Expatax or Europlan in the future.
As you may know a car you get from your employer to use for your work and for the rides between home and work but also for the other private kilometers is taxed as income in your income tax return if the private kilometers in a calenderyear are more than 500. The amount of the income depends on:
a. the value
of the car;
b. the period you got the car;
c. the amount of private kilometers (for the percentage taken from the catalogue value of the car);
d. the distance between home and work.
The value of the car is the original catalogue value including VAT and BPM.
The amount of private kilometers must be proven with a registration containing for every single trip:
b. begin and end amount kilometer counter;
c. address where you left and address where you went to (name of the city);
d. the route if it's not the same as usual;
e. classification as business or private.
What will the percentage be? This depends on the amount of private kilometers per year:
0 till 500 km
501 till 3.000 km 10%
3.001 till 6.000 km 15%
6.001 till 8.000 km 20%
8.001 and more km 25%
Also the distance between home and work is relevant. If the distance is between 10 and 30 km then there is no problem. But if the distance is less than 10 km 1/3 of all the kilometers will be treated as private. If the distance is more than 30 kilometers, 1/3 of all the kilometers above 30 are treated as private. The maximum private kilometers calculated this way is 5.500.
If you pay an amount to your employer every month for the private use of the car this can be deducted from the income.
If you are made redundant you will often receive a redundancy payment. The possible tax consequences are mentioned on our website and are updated recently. Look here for more information.
Have you seen our glossary for mortgages yet? It explains some Dutch words regarding mortgages. You can find it here.
It's in Dutch but here is the article: http://www.parool.nl/artikelen/NIE/1053494713491.html
It's about a new school in the Wodanstraat in Amsterdam for highschool children and costs € 4.500 per student per year.
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