End-of-year tips 2022: prepare for tax changes in 2023

Do you want to be well prepared for fiscal changes in the new year? In this article we explain six expected changes, on which you may want to participate in the coming period with our end-of-year tips.

The following tax plans for 2023 will only be final after they have been approved by the First Chamber at the end of December. We will publish an overview of the final changes on our website in early 2023.

Tip 1
Pay off excessive debts DGA

Do you borrow money from your own company? As of 2023, an upper limit of 700,000 will be introduced as a tax-free sum. Borrowed money above this amount is taxed with 26.9% income tax. We therefore advise you to repay debts above this amount before 31 December 2023 (the first review moment).

Tip 2
Equalize assets between you and your tax partner Box 3

By making use of the possibility for tax partners to equalize assets on paper, you can obtain a tax benefit in box 3. With the returns, Lupacompany takes into account the possibility of declaring the taxable Box 3 capital as attractive as possible for tax purposes.

Tip 3
Participe on rising recovery interest

The reduction of recovery interest as a result of corona will be adjusted upwards step by step. In order to make use of a lower rate, it is therefore important to repay in time if possible. On July 1st. the interest rate has already been increased from 0 to 1%. Every year (as of 1 January) one percent will be added, until it reaches 4% as of 2024.

Tip 4
Take into account a reduction of bracket 1 in the Vpb

As of 2023, the limit for the first bracket in corporate income tax will be significantly reduced. This is then no longer € 395,000, but reduced to € 200,000. Above this amount, your company pays the high rate (25.8%). In addition, the rate over the first € 200,000 (bracket 1) will be increased from 15 to 19%.

Tip 5
Tax free donating for housing? Don't wait too long!

Do you want to make use of the scheme whereby you can donate up to 106,671 euros untaxed for someone to buy their own home? Then you have to do that this year. Because as of 2023 it is only possible to donate up to € 28,947 tax-free for the purchase of living space. As of 1 January 2024, the scheme will even be abolished altogether. Previously issued tax-free donations must be spent before 2025.

Tip 6
Check changes to fiscal old-age reserve (FOR)

The government intends to implement that as of 1 January 2023, the old-age reserve can no longer be built up. New build-up of the reserve is therefore no longer possible. If you currently make use of the FOR scheme, this will mean that you cannot continue with this. Already built up old-age reserve can be settled according to the current rules. That means that the entire amount is released in one go or can be converted into an annuity product.