SAS News

The tax plan provides more clarity about how the rates for income tax and corporation tax will change. This provides a good basis for income planning. Here are some possibilities to consider.

The government recently presented its plans for 2019. The economy is currently in excellent shape while employment has been growing in recent years. The present government is also in a better position financewise than the last government and they claim that this is reflected in the latest budget and proposed fiscal measures. This newsletter is devoted to the most notable tax legislation that has been proposed.  

Which costs are covered by the work-related costs scheme and which are not? You must formally designate them in advance. In practice, however, many business-owners find this to be a lot of bother. Fortunately, that is about to come to an end as the Tax and Customs Administration has this year published a proposed text which you can easily adopt to provide a general designation that will clarify whether or not allowances and employment benefits fall under the work-related costs scheme.

From now on anyone getting married does so under a limited community of property regime. What that means is that your personal possessions and debts from before the marriage remain your property, the possessions and debts which you acquire during the course of the marriage are jointly owned. You can change the 50/50 division by drawing up or changing a prenuptial agreement. But it is important to note that this means that gift tax becomes liable.

The government has proposed that from 1 January 2019 the maximum duration of the 30% facility will be cut from eight to five years. If the proposal will become effective law, this will apply to both new and existing users. Because no transition arrangements have been proposed, in six months’ time some expats will see a significant reduction in their income or employers will have to remit more wage tax.