Due to the corona pandemic, the Dutch government decided to help employers who have made or want to make new investments in business assets as of 1 October 2020. These employers were able to offset part of the (investment) expenses against their payroll taxes. The Dutch government has submitted the offsetting job-related investment reduction (BIK) to the European Commission for approval that the scheme for fiscal units envisaged in the BIK can be regarded as lawful state aid. According to the informal consultations with the European Commission there is a chance that the entire BIK will not be regarded as lawful state aid. Therefore, the Dutch government has decided to withdraw the job-related investment reduction (BIK) with retroactive effect to 1 January 2021 and has therefore decided to switch to a different support for the business community. The Dutch government proposes to lower the AWf premium (General Unemployment Fund) for employers in 2021, if possible, from 1 August 2021.
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NAZALI TAX & LEGAL