On Budget Day, September 21, 2021, the cabinet will announce the National Budget, the Budget Memorandum and the Tax Plan 2022 to the House of Representatives. This is an important day for anyone involved in tax matters. Which changes will be made in 2022 that are relevant to you as an employer with regard to payroll taxes. Most proposals of the Tax Plan will come into effect on January 1, 2022, unless a different date is expressly stated.
Allowance for working from home
Since employees are working from home due to COVID-19, many employers have received requests from employees for reimbursement for the cost for working from home. From 1 January 2022, an exemption will apply to reimburse the costs of working from home. The cabinet accepts Nibud’s decision and proposes an exemption of a fixed amount of a maximum of € 2 per day. It is important here that the exemption from the homework allowance and the commuting allowance cannot be applied simultaneously for the same working day. If an employee works part of the day at home and another part of the day at a fixed workplace, only one of the specific exemptions can be applied. You can apply both exemptions if the employee works from home for part of the day and also makes a business trip that does not involve commuting. An exemption from the homework allowance of a maximum of € 2 per working day can also be applied if an employee works from home only part of the day.
Change of work expenses scheme
A second change compared to 2021, which will take effect in 2022, is the percentage of the work-related costs scheme. The work-related costs scheme offers employers, who have the financial scope to do so, the option of providing extra tax-free allowances and/or benefits in kind to their employees. The increase of the percentage of the work cost-scheme in the year 2021 will be codified in the Tax Plan 2022. The work expenses scheme for in the year 2022 is 1.7% of the taxable wage up to € 400,000 and 1.18% over the excess.
Adjustment of cap in addition fees to emission-free passenger cars
The government proposes to lower the list price for which the maximum discount on the addition fees for emission-free passenger cars applies (cap) in 2 steps from 2022. This means that from 1 January 2022 a discount of 6% will apply on the addition to the cap of € 35,000 and from 2023 on the cap of € 30,000.
Extension of usual wages for innovative start-ups
Furthermore, the temporary measure that gives the possibility for director shareholders of innovative start-ups to set the usual wage at the statutory minimum wage has been extended by one year until January 1, 2023. The measure has been extended because the evaluation of this scheme has not yet been finalized.
Choice of moment to tax share option rights
In addition, as from 1 January 2022, employees who have been granted share option rights by their employer can choose when to be taxed.
- The employee pays tax when the shares are negotiable.
- The employee pays tax when options are converted into shares.
If you have any questions about the Tax Plan 2022 as a result of this blog or do you need help? Please contact us or read the full report on the Tax Plan 2022.