Reduced VAT rate expired
The reduced VAT rate of 5% for gastronomy, hotels and the cultural sector expired on 31.12.2021, therefore the regular rate (13% for sales in the cultural sector) applies again as of 1 January 2022
Key points tax reform 2022
The 2nd rate bracket of income tax (18,000 to 31,000 euros annual income) will be reduced from 35% to 32.5% as of January 2022, and to 30% as of 2023. The 3rd rate bracket (31,000 to 60,000 euros annual income) will be reduced from 42% to 41% from January 2023, and to 40% from 2024.
Hackler regulation to be replaced by early starter bonus in 2022
From the beginning of 2020, employees, farmers and tradesmen could retire at 62 after 45 years of work without reductions (deductions).
In November 2020, the National Council decided to end the current hackler regulation. From 2022 onwards, it will still be possible to retire at the age of 62 after 45 years of insurance, but deductions of 4.2% per year difference to the standard retirement age.
However, the early starter bonus is intended to compensate for the loss of the Hackler regulation. This means that people with at least 25 years of contributions to their pension account and twelve months of work before the age of 20, will receive a minimum of one euro and a maximum of 60 euros per month on top of their pension.
ATTENTION: New calculation period for the assessment basis for unemployment benefits, since July 1, 2020.
A long planned change in unemployment insurance laws went into effect as of July 1, 2020. Until now, calculation of unemployment benefits was in accordance with the time of application and adjusted with income from the last or previous year. As of July 1, the exact date of application is regarded as the basis.
This means, the following:
Calculation is based on the last twelve monthly contributions to the unemployment system before expiration of the (12 month) correction period. If there are less than 6 months of contributions, calendar months within the correction period will be included.
• Registration with the AMS in July 2021
• 12 month correction period including July 2020.
• Basis for calculation – July 2019 to June 2020
Also new is that special payments are calculated at a flat rate of one sixth of ongoing remuneration!
Transitional provision: If there are no monthly contributions, the old basis for calculation will be used.
International Artist Taxation, Social Security and VAT (Dick Molenaar)
Beside the workshop documents, Dick Molenaar also provides three extensive brochures on his website All Art Tax Advisers about the inner European regulations regarding the issues International Taxation, Social Security and VAT, which were created in cooperation with Pearle*.