Changes in law and regulations 1st Quarter 2020

19 December 2019

As an entrepreneur, you are faced with new and modified rules and laws. This page offers an overview of changes relevant to businesses during the 1st Quarter of 2020.

Definitive changes in legislation

  • Administration
    If you are self-employed, you will automatically receive a separate VAT-ID number. Find out more about VAT numbers.
  • Business management
    On 1 January 2020, the Balance Employment Market (WAB) comes into effect. It has several effects on employment contracts. Read more about the new act.
    If you employ staff, the gross amount for the legal minimum wage and legal minimum youth wage increases on 1 January 2020. Read more about the Minimum wage.
  • Tax matters
    Entrepreneurs with a turnover under €20,000 can apply for exemption from paying VAT. Find out more about the Small businesses scheme.
    If you sell digital books, newspapers and magazines, you can charge the lower 9% VAT rate. Read more about VAT rates.
    Taxi companies will no longer receive a money back for private vehicle tax when they buy new cars. Read more about Private vehicle tax.

  • Legal matters
    Special interest or lobby groups will be able to go to court to claim damages on behalf of a collective in future. Read more about disputes.
  • Sales
    A lower percentage of charity lottery takings have to be transferred to the charity. Read more about Games of chance.

Proposed changes in legislation

  • Business management
    The energy investment allowance will include investments which reduce CO2 emissions, for example heat infrastructure. Read more about the Energy investment allowance.
    Farmers will no longer have to pay 21% insurance premium tax on comprehensive weather insurance. Read more about insurance premium tax
    The benefits scheme for self-employed professionals and freelancers is to be simplified. Read more about financial support for self-employed professionals.
    In the future, you can apply for R&D tax credit 4 times a year and submit applications at a later stage. Read more about R&D tax credit.

  • Taxes
    The rate in box 2 is to increase from 25% to 26.50% in 2020. In 2021 the rate will increase to 26,90%. Find out more about Corporate income tax.
    The high rate of corporate income tax will not be lowered in 2020, and tax interest will scrapped. Find out more about Corporate income tax.
    The government is to accelerate the decrease in deductions for entrepreneurs. Read more about Income tax.
    The general levy reduction for income tax will increase until 2021. 
    Employers will be exempt from paying insurance premium tax on absenteeism insurance for staff on sick leave. 
    If you dump or burn wastage from abroad, you will have to pay a waste disposal charge. Read more about Importing and exporting waste materials (EWSR).
    If you own or lease electric cars in your business, the added taxable income rate will increase gradually. Read more about company cars.
    VAT rules for trade between EU countries will be simplified. Find out more about VAT on products from other EU countries.
    Administrative fines will no longer be deductible from income or corporate income tax. Read more about income tax and Corporate income tax.
    An increase in tax credit means lower income taxes for employees and employers earning between €10,000 and €98,000. Read more about income tax.
    The introduction of the simplification of the tax system is to be accelerated. In 2020 there will be just 2 tax brackets, a year earlier than expected. Read more about income tax.
    The private business ownership allowance is to be gradually reduced to €5,000 in 2028. Read more about the Private business ownership allowance.

  • Staff
    The Work-Related Cost Scheme (WKR) has been relaxed so that employers can offer their staff more tax-free compensation for work-related costs. Read more about the Work-related cost scheme.
    Your employees will no longer have to track all their kilometres if they want to use a company lease bicyle. Read more about Company lease vehicles.
    A raft of measures is to be introduced to make dealing with the absenteeism of sick employees cheaper and easier for small and medium-sized businesses. Read more about insurance premium tax.

  • Justice
    Lobby organisations are to be able to go to court to claim damages on behalf of a collective. Read more about Disputes.

  • Transport
    You can suspend your vehicle registration for longer than 1 year. You can also suspend the vehicle registration for different vehicles for different lengths of time. Find out more about Suspending vehicle registration.

Want to keep up with the latest developments? Follow @BusinessGovNL on Twitter or visit the government webpage.