The end of the year is quickly coming near. In the Netherlands, there will not be any big celebrations because of the notorious corona pandemic and the rise of the Omicron variant. As well as the new calendar year, the new fiscal year is also starting on the first of January. Each year, the government makes fiscal changes. Below is a list of the fiscal regulation changes the Netherlands will adopt in 2022.
Rate Adjustment
A rate adjustment will be implemented in 2022. The rates are slowly being diminished for the incomes that fall in the highest segment of the tax scale. This change only affects people who earn on this highest scale and have deductible costs. These kinds of expenses could include personal deductions like child support and healthcare costs, but also deductible costs for your own house or some entrepreneurial facilities (Belastingdienst, n.d.).
AOW
Moreover, the retirement age (in Dutch: AOW) is rising. In 2021 this was 66 years and four months, and in 2022 the new age will be 66 years and seven months (Belastingdienst, n.d.). One of the reasons the retirement age is slowly rising is because life expectancies are growing as well. In the Netherlands, the working people pay the AOW. If an increasing number of people need this subsidy, and the same amount of people keep working, either shortage will arise, or the working class needs to start paying significantly more (NPO Kennis, n.d.).
Homeownership Scheme
Furthermore, there will be changes in the homeownership scheme. These changes mostly have to do with preventing unwanted restrictions in the interest deduction if you have a partner. Lastly, the income-related combination discount is being diminished. If you or your partner live abroad, you might receive a different discount than others, but this is situational (Belastingdienst, n.d.).
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