Income tax 2011 & tax rates and brackets

The 2011 tax year is over, now it’s time to file your 2011 tax return. How much payroll tax do we have to pay in 2011? In the 2011 tax year, the tax authorities’ concept of tax partnership will also change and that is important for your tax return. See also the new tax credits for 2011 and the income tax brackets. A distinction is made between people who are younger or older than 65 years. View how much tax you have to pay, the amount of the inheritance tax, the consequences of Rutte 1, the healthcare allowance, box 3 and the rental allowance. From 2014, the general tax credit will become income-related, until then it will be a fixed amount.

Income tax 2011, income tax return 2011 and tax partnership 2011

The concept of tax partnership has changed as of January 1, 2011. Many of us can no longer choose to be treated as tax partners by the tax authorities. This can have all kinds of tax consequences during the year and on your 2011 income tax return. For example, for capital insurance for your own home, because you no longer meet the requirements. It also has an effect on gift tax and inheritance tax. For the ins and outs of the tax partnership from 2011, I refer you to the article:

  • What is tax partnership in 2011.

For your 2011 tax return, I refer you to:

  • Tax return 2011 income tax;
  • Tax return 2011, savings and other assets.

Income tax brackets 2011

The tax rates for payroll tax 2011 are known and therefore the payroll tax we will have to deal with. As has been common until now, there are differences between those who are younger than 65 and those who are older than 65:

Rates and tax brackets IB for those under 65 years of age in 2011:

level of income

but not higher than

tax rate

18,628

33%

18,628

33,436

41.95%

33,436

55,694

42%

55,694

52%

and Rates and tax brackets ib for those who are 65 years or older in 2011:

amount of income

but not higher than

tax rate

18,628

15.1%

18,628

33,485

24.05%

33,485

55,694

42%

55,694

52%

It is notable that the length of the first tax bracket has been slightly extended compared to tax year 2010 and the associated rate has been slightly reduced.

Tax credits 2011

A payroll tax credit is important because the number of tax credits for which you are eligible directly determines how much payroll tax and tax you have to pay. There are a few changes in 2011. In 2011, the tax credit for the elderly will increase to 739 euros, an increase of 50 euros. The maximum employment discount increases by 45 euros. The other tax credits change slightly as a result of inflation. The general tax credit remains unchanged at 1,987 euros per person for those under 65 and 925 euros for those over 65:

The tax credits 2010–2011

Payroll tax credits

Status 2010

Status 2011

General tax credit

1,987 euros

1,987 euros

General tax credit 65+

925 euros

910 euros

Labor discount maximum:

   

up to 57 years

1,489 euros

1,574 euros

57,58 or 59 years

1,752 euros

1,838 euros

60 or 61 years old

2,012 euros

2,100 euros

62 years to 64 years

2,273 euros

2,362 euros

65 years and older

1,057 euros

1,081 euros

Continuation bonus

maximum 4,679 euros

4,708 euros

Phasing out the employment tax credit for high incomes

56 euros

77 euros

Discount for the elderly, maximum aggregate income 34,857 euros

684 euros

739 euros

Single elderly discount

418 euros

421 euros

Income-related combination discount basic

775 euros

780 euros

Income-related combination discount maximum

1,859 euros

1,871 euros

Single parent discount under 65

945 euros

931 euros

Additional single parent discount

1,513 euros

1,523 euros

Young disabled discount

691 euros

696 euros

Life-course leave discount

199 euros

201 euros

Social investments

1.3%

1%

Venture capital and culture

1.3%

1%

Parental leave discount

4.07 euros per hour

4.11 euros per hour

The single parent tax credit and the additional single parent tax credit will be combined into 1 tax credit. The changes compared to 2010 are not that great.

The tax credits 2010–2011 for people aged 65 and over

Tax credits

Status 2010

Status 2011

General tax credit

925 euros

910 euros

Labor discount

1,057 euros

1,081 euros

Single parent discount

440 euros

427 euros

Senior discount

684 euros

739 euros

Single elderly discount

418 euros

410 euros

Income-related combination discount maximum

865 euros

857 euros

Continuation bonus:

   

65 years and 66 years

maximum 936 euros

maximum 942 euros

67 years and older

maximum 468 euros

471 euros

Social investments

1.3%

1%

Venture capital and culture

1.3%

1%

Parental leave discount 2011

The parental leave credit is an additional tax credit equal to the number of hours of parental leave multiplied by a maximum of 4.11 per hour. This is a net benefit on the tax to be paid and is maximum equal to the difference between your taxable salary in 2010 and your taxable salary in 2011. If parental leave started before 2011, this is a maximum of your taxable salary for 2009 minus your taxable salary. about 2011.

Maximum hourly price for childcare increased in 2011

From January 1, 2011, the maximum prices per hour for childcare have increased compared to 2010:

Type of shelter

Maximum hourly price 2010

Maximum hourly price 2011

daycare

6.25

6.36

school care

5.82

5.93

childcare

5.00

5.09

In 2011 you will have to pay even more for childcare. The parental contribution increases as the income increases. With an income of twice the average, the parental contribution for childcare is 323 euros per month. This is an increase of 54 euros compared to 2011:

Parental contribution childcare 2010 and 2011:

Collective income 2011

Parental contribution per month 2010

Parental contribution per month 2011

minimum up to 20,000

44

65

average or 35,000

86

113

2x average or 70,000

205

250

2.5x average or 85,000

269

323

What is the aggregate income and assessment income?

The aggregate income is the total of the income in boxes 1, 2 and 3 of the income tax minus the personal tax deductions such as deductible healthcare costs and alimony. You will see the amount of this income on the tax assessment from the tax authorities. The concept of assessment income, which is substantively equal to the aggregate income from income tax, is used when applying for and determining allowances such as healthcare allowance and housing allowance.

Deduction of annuity premiums for 2011 and 2012

From 2011 onwards, you can only deduct the annuity premiums that you actually paid in 2011. Premiums that you pay later, for example in the first months of 2012, are no longer deductible in 2011.

Rent allowance 2011

Whether you receive housing allowance depends, among other things, on the amount of your assets. If your assets remain within the exemptions in box 3 for savings and assets, you may be eligible for a housing allowance. These exemptions partly depend on your age and the composition of your family. In order to receive housing allowance, your assets may not exceed:

Your age and situation:

Allowed power per person:

You are younger than 65 years old

20,661 + 2,762 for each minor child

You are younger than 65 years old and a single parent. You received rental subsidy from July 1 to December 31, 2005 with a capital of more than 20,300. You received housing allowance in 2006, 2007, 2008 and 2009 and in 2011 you are entitled to a single parent discount

41,322

You are 65 years or older and your income is less than 13,978

48,011

You are 65 years or older and your income is 13,978 to 19,445

34,336

You are 65 years or older and your income is higher than 19,445

20,661

Child benefit 2011

The child benefit amounts for 2010 and 2011 are the same as in 2009. These are amounts in euros per quarter and per child:

Number of children born before January 1, 1995

12 to 17 years, child benefit per child

1

278.55

2

313.25

3

324.81

4

350.23

5

365.47

6

375.64

7

382.90

8

396.22

9

406.57

10

414.85

Age of child born on or after January 1, 1995

0 to 5 years

6 to 11 years

12 to 16 years

Amount per child per quarter

194.99

236.77

278.55

           

Child budget 2011

The amounts for the child budget for 2010 and 2011 remain the same.

Child budget 2010 and 2011, maximum amounts per child:

Number of children

Child-related budget

1 child

1,011 euros

2 children

1,322 euros

3 children

1,505 euros

4 children

1,611 euros

5 children

1,662 euros

6 children or more

51 euros extra per child

Income from substantial interest 2011

The tax rate on a substantial interest in a company or cooperative, i.e. ownership of at least 5% of the shares or corresponding options, is 25%.

Capital gains tax on savings and investments box 3 income tax

The capital gains tax on savings and investments in box 3 is also equal to 1.2% in 2011. This still assumes a fictitious return of 4 percent, while that return is hardly achievable with savings. The exemption on savings in 2011 remains unchanged at 20,661 per person. What will change is that only January 1 will be the reference date for determining the amount of your assets.

Inheritance tax rates 2011

In 2010, the system for inheritances and donations was considerably simplified. This system will continue to exist in 2011, but the amounts will be indexed. This means that the inheritance tax rates will change slightly. Tax-free inheritance through the exemptions was structured as follows in 2011:

Inheritance tax rates, exemptions and brackets 2011:

relationship to the deceased

exemption in euros

rate up to a maximum of 118,708 euros

rate on the excess above 118,708 euros

Older

45,270

30%

40%

Partner

603,600

10%

20%

Child

19,114

10%

20%

Disabled child

57,342

10%

20%

Grandchild

19,114

18%

36%

Others

2012

30%

40%

BPM rates

The rates and bands for the BPM tax on cars are as follows in 2010 and 2011:

BPM rates

2010

2011

basic percentage BPM in % list price:

27.4%

19.0%

petrol discount

– 1,288 euros

– 824 euros

diesel surcharge

+ 1,076 euros

+ 1,526 euros

     

CO2 limit for petrol in the first bracket

from 110 to 180 gr/km

from 110 to 180 gr/km

CO2 limit for petrol in the second bracket

from 180 to 270 gr/km

180 to 270 gr/km

CO2 limit for petrol third bracket

from 270 gr/km

from 270 gr/km

     

CO2 limit for diesel first bracket

from 95 to 155 gr/km

from 95 to 155 gr/km

CO2 limit for diesel second bracket

from 155 to 232 gr/km

from 155 to 232 gr/km

CO2 limit for diesel third bracket

from 232 gr/km

from 232 gr/km

     

rate first bracket per gr/km

34 euros

61 euros

rate second bracket per gr/km

126 euros

202 euros

third bracket rate per gr/km

288 euros

471 euros

There is therefore a complete exemption from BPM for diesel cars with a maximum of 95 g/km CO2 emissions and for other cars with a maximum CO2 emission of 110 g/km. In addition, there is a clear increase in levies based on CO2 emissions. In the first bracket, there is an increase in the rate in euros by almost 80 percent: from 35 euros to 61 euros per gram per kilometer of CO2 emissions. From 2013 onwards, the BPM will even be based exclusively on CO2 emissions.

Reduction in corporate tax rate 2011

In 2011, the general corporate tax rate will be reduced by half a percent to 25% with effect from 1 January 2011. For the SME rate of 20%, the limit of 200,000 in profit applies:

gain

SME rate as of 2011

Profit up to 200,000

20%

Profit above 200,000

25%

Healthcare allowance 2011

The healthcare allowance system will not change in 2011. There will be an assets test in 2013, more about which later in this article. In 2011, there is no right to healthcare allowance with an income of 33,743 euros for a single person and 50,000 euros for couples or multi-person households.

Additional fiscal measures by the Rutte – Verhagen cabinet in 2011 and 2012

A number of tax measures taken by Rutte 1 are also known:

1. Abolition of tax credits box 3 for green investing

From 2011, the additional tax credits of 1.3% will gradually expire over four years to 0% in 2014. In 2011 there will remain a benefit of 1%, then 0.7% in 2012 and 0.4% and 0% in 2013 and 2014 respectively. These are the tax credits for green investing, social ethical investing, cultural investing and investments in venture capital. You do retain the usual exemption from the capital gains tax of 1.2%.

2. Move the continued work bonus one year

The Coalition Agreement still stated that as of 2012 you could only qualify for the continued working bonus from the age of 63. A year later than now. But this intention has been adjusted with the 2012 Budget Memorandum. The bonus remains unchanged from the age of 62, but the discount is not 5%, but 1.5%.

3. Limit child support deduction to 21 years of age

The child support deduction now exists for children up to the age of 30. This will be lowered to 21 years in 2012. This directly affects people who pay child support and single parents.

4. Limit gift deduction to ANBIs with a reporting obligation

In 2011, donations are only tax deductible if made to ANBIs. In addition, these institutions will have a reporting obligation, or obligation to report the donation to the tax authorities.

5. The age limit for the youngest child to 12 years for a single additional parent discount is cancelled

For the single parent discount and the additional single parent discount, the age limit for the youngest child would become 12 from 2012. In 2011, this is 27 years for the single parent discount and 16 years for the additional single parent discount. These changes to the single-parent discount directly hit the single parent in the wallet. In the 2012 Budget Memorandum, the ages have been adjusted again to 18 years for the single parent discount and 16 years for the additional single parent discount.

6. Childcare significantly more expensive in 2013

In 2013, someone with a minimum income per month will pay 37 euros more per month for childcare for two days of care per week for two children. For high incomes this will be 290 euros more. These are the additional amounts for childcare compared to 2011.

7. State pension postponed

Until now, someone receives their first state pension on the first day of the month in which they turn 65. As of January 1, 2012, for someone who receives AOW for the first time, this will only be on the day of their birthday.

8. Assets test for healthcare allowance in 2013

As of 2013, there will be an asset test for healthcare allowance. With assets in box 3 of 80,000 euros plus the exemption of 20.66, persons are no longer entitled to healthcare allowance. For those over 65 years of age, the exemption may be slightly higher. The same assets test will be applied to the child-related budget. So:

Assets test for healthcare allowance 2013

family composition:

exempt assets if younger than 65:

single

100,661

together with partner

121,322

extra per minor child

2,762

Anyone over the age of 65 may have an additional capital exemption, depending on their income. The amounts per person:

Your age and situation:

additional permitted power per person:

You are 65 years or older and your income is less than 13,978

13,675 euros extra

You are 65 years or older and your income is more than 13,978 and less than 19,445

27,350 euros extra

You are 65 years or older and your income is higher than 19,445

0

9. Abolition of a child-related budget for three children

A family with three children or more no longer receives a child-related budget. From 2013, the child budget will be abolished for parents with assets of more than 100,000.

Key lock

Not much will change fiscally with the 2011 Budget Memorandum. The deductible for health insurance was 170 euros in 2011 and increased to 210 euros in 2012. In addition, the premium for the basic package will increase by 100 euros per year. Part of it will be compensated through the 2011 health care allowance. A windfall is that the VAT on labor wages when renovating your house will be reduced from 19 percent to 6 percent. Young people between the ages of 18 and 21 will especially notice that their dental costs are no longer reimbursed through the basic package. Finally, fines will increase by an average of 15 percent in 2011.