Innovating sustainably in 2021
In the coming year, the Dutch government will take various measures in order to stabilise the markets, give entrepreneurs the opportunity to realise positive figures at the bottom line and safeguard the innovative character of our economy. Below we list the measures for you.
The measures in short
In 2021, large-scale enterprises will be faced with an increase in the tax burden, which will allow a tax reduction for other entrepreneurs. Grant schemes and tax allowances for investments in staff will be continued in order to prevent a further increase in unemployment. To ensure that entrepreneurs in the Netherlands will continue to actively invest in innovation, they will receive additional allowances. Additional grant schemes will provide extra scope for sustainable, innovative projects. Further, the Dutch government plans to focus on supporting entrepreneurs in order to create together solutions for climate-related issues. This support will concentrate on reducing the emission of greenhouse gases as well as producing renewable energy. The grand total of all these measures will have to ensure that the Dutch economy, despite the corona measures that will remain in place for the time being, will start growing again.
Measures aimed at innovation
- The percentage of the tax incentive scheme Research and Development (Promotion) Act (WBSO) will be increased from 32% to 40%. For start-ups, the first bracket will increase from 40% to 50%.
- The allowance for start-ups that want to make use of the WBSO will be increased by € 6,598. As a result, this allowance will amount to € 19,786, stimulating innovative start-ups even more.
- The Innovation box, which is part of the corporate tax system, is a tax scheme for profits resulting from innovation. The percentage of the Innovation box, which is currently 7%, will be raised to 9% in 2021.
- The government is introducing the National Growth Fund in order to promote investments in knowledge development, innovation and infrastructure. With regard to infrastructure, the attention will be specifically aimed at new possibilities in the field of knowledge and energy. For the coming five years, € 20 billion will be made available via this fund.
- A new programme, ‘Innovation on the Farm’ will be launched with the aim of applying the knowledge and innovations that become available, more quickly in the agricultural daily practice. The programme will consist of grants and tax schemes available to farmers in order to improve the sustainability of their business operations.
- In 2021, grants will be made available to promote innovations in the field of sustainable aviation. The development of hybrid electric airplanes in particular will be investigated.
Measures in order to promote investments
- 2021 will see the option to receive extra tax allowance for investments made for promotion of employment opportunities. The Job-related Investment Allowance (BIK) allows for a reduction on income tax and national insurance contributions deducted by the employer.
- In 2021, in total € 360 million of subsidies will be made available for improving sustainable livestock farming and tackling the nitrogen emission problems in the Netherlands.
- A change in the corporate tax rates will offer extra allowances for companies using the tax schemes such as the energy investment allowance EIA, and the environmental investment tax schemes for businesses MIA and Vamil. The threshold of the first bracket which is currently still at € 200,000, will be raised to € 395,000 of profits in 2021. With regard to the first bracket, the tax rate will be cut from 16.5% to 15%. For profits exceeding € 395,000, the percentage will remain at 25%.
- The subsidies for electric cars, both new and used, will be continued in 2021. To this end, until 2025, a total of € 252 million will be available.
- In 2021, a grant will be introduced in order to promote the realisation of shore-based power facilities in seaports for seagoing vessels.
Measures aimed at training staff
- Subsidies for investments in staff, career, and sustainable employability of staff will be introduced.
- The EU instrument SURE will provide support for employment possibilities.
- New schemes will be introduced for retraining and work.
- Due to the corona crisis, people have more need for training, retraining and support in finding new jobs. That is why a larger budget will be made available for the SLIM scheme aimed at training and development in SME.
- € 10.6 million extra budget will be made available for the grant scheme ‘Practical learning’, for the academic year 2020-2021 as well as 2021-2022. This grant will be specifically aimed at industries sensitive to cyclical trends and industries that include many close-contact professions. The aim is to stimulate employers to offer internships despite the present corona measures.
- In 2021, the budget for the grant ‘Count with Language’ (Tel mee met Taal) which is part of the action plan ‘Functional illiteracy’ will be increased by €6 million.
To find out more about the measures, email Roy Hoven or call him on +31 (0)73 646 5475.