‘Prinsjesdag’ Budget Day – Plans for 2022
On ‘Prinsjesdag’, the Dutch government announces its plans for the coming year. This year, the Opening of the Parliament was held in the Grote Kerk instead of the ‘Ridderzaal’ (Hall of Knights) as was traditionally done. In his Speech from the Throne, King Willem-Alexander addressed climate change and the effects of the pandemic on already-vulnerable groups, among other concerns.
He announced that the Dutch economy is in good shape despite the pandemic, and stresses that the government plans to take extra steps in the year ahead in areas such as climate change, the rule of law, and housing.
Following is a summary of the plans for 2022 (these plans are subject to approval by the House of Representatives and the Senate):
Sustainability
The cabinet wants to support people who make sustainable choices. That is why an extra €600 million has been earmarked as subsidies for electric cars for individuals (SEPP scheme); and electric delivery vans and other commercial vehicles (SEBA scheme).
More money from existing subsidy schemes will go towards making both rental and owned homes more sustainable. For example, subsidies for the installation of a hybrid heat pump and better insulation for homes.
Housing
The cabinet will invest €100 million a year over the next 10 years to build 900,000 homes. In addition, there will be a housing subsidy scheme for vulnerable people, such as people who are homeless, asylum status holders, and students.
Working from home
From 1 January 2022, employers can provide a tax-free work from home allowance of up to €2 per day. This allowance may be combined with the existing tax-free travel-to-work allowance of up to €0.19 per kilometre.
Health insurance premiums
Health insurance premiums are expected to cost an additional €2.75 per month on average in 2022.
Legal aid for everyone
The government will make an extra €154 million available next year for the compensation of social lawyers and mediators. The cabinet believes that anyone who needs legal aid should be able to find it easily. This should help people find a solution to their problem more efficiently.
Tax
The government will cut taxes and social insurance contributions by €226 million on a structural basis to boost the purchasing power of people on low incomes, sole income providers, and families.
Measures for startups
It is common practice for startups to offer stock options to attract talented employees. Tax is currently levied if an employee converts the options into shares. From 1 January 2022, tax will be levied only when the shares can be traded and money becomes available. This offers employees more financial flexibility.
Source:
- 2022 Budget Memorandum: Resilience and further steps forward
- 2022 Tax Plan: a better tax system
- Budget Day 2021: invest in the stability of the rule of law
- Belangrijkste maatregelen Prinsjesdag (in Dutch)
- NOS (in Dutch)