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.