2012 tax changes

As from January 1, 2012 there will be some tax changes. We have highlighted some of them below.

Self-employed tax deduction
Self-employed persons have a tax deduction. In order to be eligible for this tax deduction you need to comply with the urencriterium, which specifies that a self-employed person needs to have spent at least 1,225 hours on business activities during the tax year. The self-employed deduction currently has eight income brackets. As from January 1, 2012, this is will change to a fixed base deduction of € 7,280.

One bank account for tax refunds
Currently tax refunds from different kind of taxes (i.e. income tax, national insurance contributions, income-related contributions for health insurance) can be paid out to different bank account numbers. As from January 1, 2012 all these refunds will be paid to a single bank account number for each taxpayer.

Adjustment to expense deductions for listed buildings
If you own a listed building you receive an income tax deduction. As from January 1, 2012 this deduction changes. The changes are as following:
• The threshold for the deduction of maintenance costs for listed buildings no longer applies.
• Only 80% of the maintenance costs of listed buildings will be tax deductible. Maintenance costs for which a subsidy is provided, cannot be deducted.
• A transitional arrangement is applicable for the tax years of 2012 and 2013 for maintenance cost which have been irrevocably committed before 1 January 2012 and for which the payment of these costs are made in 2012 or 2013. This must be able to be demonstrated through invoices and bank statements.
• The deduction of building depreciation and ownership costs is no longer possible from January 1, 2012.