From next year, healthcare personnel will receive an extra bonus of 500 euros, in addition to the additional payment of 1,000 euros that was already promised. Citizens will receive a small tax reduction through income tax and a higher employed person’s tax credit, sources report to NU.nl on Thursday after reporting from The Telegraph.
This week, coalition parties VVD, CDA, D66 and ChristenUnie and the cabinet have long negotiated the budget plans for next year. At the same time, work is being done on a third support package for the business community that has been hit by the corona crisis.
Politicians agree that health care workers deserved a little extra for working hard during the peak of the corona outbreak. This does not happen with a structural salary increase, as the opposition would have liked.
The income tax in the first bracket, which runs to 68,500 euros gross per year, will be reduced by 1 percent. In addition, there is a further reduction in the employed person’s tax credit. This should give citizens a little extra purchasing power.
A further reduction of the mortgage interest relief is out of the question. This cabinet has already cut back this tax benefit for homeowners in stages.
Small entrepreneurs do receive a tax discount
Furthermore, the coalition and the cabinet have agreed that the proposed tax for multinationals will not go ahead. This is seen as inappropriate in economically difficult times when people lose their jobs and companies go bankrupt.
Initially, the income tax would be lowered from 25 percent to 21.7 percent in 2021. The money that is saved in this way is re-invested in business.
Smaller entrepreneurs will keep their tax cut from 16.5 percent to 15 percent next year. In the old plans, this only applies to profits up to 200,000 euros; that amount is now being increased to 400,000 euros.
The cabinet is still negotiating the final details of the budget and support plans. The entire package is expected to be presented on Friday afternoon.
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