Burden relief citizensThe government wants to introduce a reduction in the burden on citizens. The Bill Tax Plan 2020 contains various measures that will reduce income tax and make (more) work even more rewarding. These include the accelerated introduction of the two-disc system. The introduction, which was initially planned for 2021, will already be realised in 2020, with a basic rate of 37.35% and a top rate of 49.5% for 2020. There will also be an additional increase in the labour discount and the general tax credit. The increase of the general tax credit is positive for lower incomes.
New income tax ratesFor taxpayers who have not yet reached the state pension age at the beginning of 2020, in principle two tranches can be expected in terms of effect.
|Box 1-tariff 2020||Taxable income over (€)||but below (€)||Tariff 2020 (%)|
|Disc low tariff||–||68.507||37,35%|
|Disc high tariff||68.507||–||49,5%|
Changed tax creditsOnly the changes in tax credits as proposed (or mentioned) in (the Explanatory Memorandum of) the Tax Plan 2020 or mentioned in the memo are included. In principle, lower ceilings apply to those entitled to state pension.
|Tax credits||2019 (€)||2020 (€)|
|General tax credit maximum (< AOW-age)||2.477||2.711|
|Labour discount max.||3.399||3.595|
|Income-dependent combination discount max.||2.835||2.881|
|Young disabled discount||737||749|