www.pwc.nl/prinsjesdag

Budget Day 2014

16 September 2014

Budget Day 2014 2

Upon examination, the 2015 Tax Plan contains few surprises. Many of the measures had already been announced or leaked.

The minimal employment tax cuts are disappointing. The picture looks a little rosier for employees, but not much has changed for employers. State Secretary for Finance Wiebes’ letter to parliament ‘Keuzes voor een beter belastingstelsel’ (Choices for a better tax system) shows ambition, but states at the same time that there is currently no financial headroom for these ambitions. In addition, no timetable has been set for tax reforms.

Some of Wiebes’ ambitions, like lower expenses for working and doing business and improving the business climate in the Netherlands, are also items on our ‘wish list’. The same goes for shifting the tax burden from labour and doing business to consumption, and simplifying complex regulations. We would like to see a gradual increase in tax on consumption through the phased introduction of a single VAT rate, in exchange for a reduction of the tax burden on working and doing business.A simpler tax system thus calls for reform of the taxation of businesses as regards personal income tax and corporate income tax.

We advocate research into issues like the benefit of corporate income tax in the total tax mix and a (more) neutral treatment of equity and debt capital.

As you can see, there are still quite a few items on our ‘wish list’, and we will keep promoting these in our discussions with interest groups, politicians, administrators and the media. Budget Day still is an important day in the process of setting your fiscal course. Hence we will outline the key tax measures of the 2015 Tax Plan for you. The focus is on what these proposals mean for you and what action you can take. Icons indicate the impact of the individual measures for you.

During the parliamentary debate over the coming months, we will update you on all amendment proposals (via the site ‘blijf op de hoogte’).

Amsterdam, 16 September 2014

Sytso Boonstra Chairman of PricewaterhouseCoopers Belastingadviseurs N.V.

Foreword

The Speech from the Throne and the Budget Memorandum contain - albeit cautiously expressed - good news. While the recovery of the economy is fragile, it is continuing, and public finance is back in line with European budget standards. There is some scope for burden reduction once more.

Icons indicate the impact of the individual measures for you.

Restructuring change A restructuring change has a major impact on you or your business. This may involve setting up new processes that would require (possibly significant) implementation time.

Financial changeA measure with financial impact, such as a change to mortgage interest relief or to the deductibility of operating costs.

Administrative change Changes that must be implemented to the administration, such as payroll and financial administration.

Policy changeA change in government policy that alters the rules of play. This is a less radical variant than the restructuring change.

Budget Day 2014 3

ContextBusiness sector profits from economic recovery In the business sector, investments and industrial production have been developing positively for some time now. This is largely thanks to strong exports. Producer confidence is also on the rise and, in July 2014, reached the highest level in three years. Under the assumption that the conflict in the Ukraine will not escalate further, the CPB (Netherlands Bureau for Economic Policy Analysis) anticipates a further rise in corporate investments, production and exports for 2015.

In its paper ‘Werken aan groei’ (Working on growth), the Dutch Cabinet has announced various measures to improve the competitive position and versatility of our economy. Stimulating and facilitating innovation in the business sector are key factors here.

Financing initiatives for SMEsOver the last year, the Dutch government has set up various initiatives to ensure that SMEs have access to the credit they need. In early July, the Cabinet presented its supplementary action plan for SME financing (‘Aanvullend Actieplan Mkb-Financiering’).

This plan includes measures to increase the supply of risk-bearing capital to SMEs, to

broaden the range of finance on offer and to improve the operation of market forces on SME financing and the existing government instruments.

Examples of initiatives, some of which fall within the action plan, are:• setting up a subordinated loan fund

(‘Achtergestelde Leningenfonds’) by means of a guarantee of EUR 500 million;

• an extra boost of EUR 100 million for investments via ‘business angels’ and venture capital companies (Dutch Venture Initiative);

• provision by the government of EUR 400 million in guarantees for the start-up of new SME finance providers;

• broadening the range of finance on offer from the microfinance organisation Qredits, by increasing the maximum loan that may be issued to EUR 250,000 and by enabling current account provision;

• increasing the investment by the European Investment Bank (EIB) and the European Investment Fund (EIF) in the Netherlands; and

• setting up the Dutch Investment Institute (NII).

Unfortunately, the Cabinet pays scant regard in the Budget Memorandum to tax measures for stimulating entrepreneurship

and reducing the administrative burdens on entrepreneurs. Entrepreneurs drive the economy. What makes them stand out is that they take risks, invest and take on employees. Consequently, tax facilities need to be more geared towards the needs of entrepreneurs.

Lower unemployment and improved purchasing power for householdsFor the last six years, Dutch households have been faced with concerns about work, home and pension. Various signs of economic recovery boosted household confidence in the general economic situation in the first half of 2014. The period of virtually ongoing decrease in consumption also seems to be behind us.

According to the CPB, the purchasing power of most groups will, on average, improve modestly in 2015. This outlook is based on the assumption that inflation will remain low next year, that negotiated wages will increase by an average of 1.5 per cent and that pension premiums will decrease. Most pensioners, however, will not see their purchasing power increase, because the indexation of many pensions will be below inflation in 2015.

The labour market is reacting more slowly to the recovering economy. Unemployment is expected to rise slightly in 2014 before it

Budget Day 2014 4

falls in 2015. The rise in 2014 is attributable in particular to the reduced number of jobs in the care sector. In addition, in 2014 businesses are focussing on enhancing their use of existing production capacity before taking on new employees.

In the Social Agreement of 11 April 2013, the Cabinet earmarked a sum of EUR 600 million for 2014 and 2015 for co-financing sector plans to reduce unemployment. In May 2014, Minister Asscher announced that, in the first tranche, a sum of more than EUR 230 million had been approved for sector plans. The relevant sectors will contribute at least the same amount themselves. The application deadline for the second tranche was 31 May 2014. A third tranche of the sector plans is aimed specifically at the promotion of ‘from work to work’ and ‘from unemployment to work’.

In addition, the government is introducing the ‘bridge unemployment benefit’ within the sector plans in 2015 to stimulate ‘from work to work’. The aim is to stimulate job changes that involve substantial retraining for growth professions and growth sectors. However, until extra work is created, it remains to be seen whether these plans translate into many permanent contracts. Higher employment most of all requires economic growth and lower labour costs.

Modest recovery of the housing marketThere are various signs that the housing market’s recovery is continuing. House prices have risen slightly in the last few months, and the number of house sales has been on the increase since mid-2013, driven in part by low interest rates and the temporary own-home gift tax exemption. The Cabinet did not announce any extension of the successful gift tax exemption in the 2015 Budget Memorandum.

According to DNB, the Dutch Central Bank, almost one in three mortgages is still ‘underwater’. Young home owners in particular, who have the greatest ‘underwater’ problem, will remain vulnerable over the years to come. In the 2014 Budget Memorandum, the Cabinet indicated that it was considering the options for setting up a National Mortgage Institution (‘Nationale Hypotheekinstelling’ – NHI) to stimulate the housing market. This NHI is intended to make the financing of loans more attractive for institutional investors. In December 2013,

the Cabinet announced that the NHI will be geared only towards new mortgages and mortgages that have reached the end of their fixed-rate period. The NHI will not solve the problem of remaining mortgage debt. Hopefully, starters will be able to benefit from the intended consequences of the NHI plans in the not too distant future. At the time of writing, the NHI’s complete development and implementation plan (‘Inrichting- en Realisatieplan’ - IRP) had not yet been presented to the House of Representatives.

Budget Day 2014 5

Employer and employee

Financial change

Policy change

Administrative

Restructuring change

Changes to the work-related costs scheme

Action: Assess the situation and prepare to

switch to the modified work-related costs

scheme

With effect from 2015, you will be required, as an employer, to apply the work-related costs scheme. The Tax Plan does not include a proposal to extend the transitional period, however, it does contain a number of proposed changes. These are fully in line with the letter from the Ministry of Finance of 3 July 2014. Therefore, it is advisable to assess whether you are ready for the implementation of the work-related costs scheme, bearing in mind the proposed amendments to the measures.

The following changes are proposed to the work-related costs scheme.• The discretionary margin percentage will be

reduced from 1.5 per cent to 1.2 per cent.• The criterion of necessity will apply to

tools, computers, mobile communication devices and similar equipment. If you, as an employer, reasonably take the view that this sort of provision is necessary for your operations, then subject to further conditions it will not be regarded as (taxable) salary.

• Any excess above the discretionary margin may be determined annually in one go after year-end and the amount due (if any) may be paid with the amount due on the tax return for the first period of the next calendar year.

• A specific exemption will be introduced for discounts on own-sector products, comparable to the old scheme for a company’s own products.

• A group scheme will be introduced for the work-related costs scheme, under which a single collective discretionary margin will be created for the companies within a group. The group scheme is optional. If applicable, the scheme applies to all group entities that meet the (direct or indirect) ownership requirement of at least 95 per cent for the entire calendar year.

• A specific exemption will be introduced for a number of workplace-related facilities to which a zero-rating already applies. In this way, the distinction between the reimbursement and provision of these facilities will be removed.

1 January 2015 - no end date

Budget Day 2014 6

Modifications to customary salary scheme

Action: Redetermine the amount of the customary

salary

If you perform work for a company in which you (or your partner) have a substantial interest, the ‘customary salary scheme’ applies to you. As from 1 January 2015, a number of changes are being implemented.One of the most important changes is that the salary of the Director/substantial shareholder will henceforth have to be checked against the salary of the employee with the most comparable position instead of with a similar position (the current criterion). In addition, the ‘efficiency margin’ will be reduced from 30 per cent to 25 per cent.When determining the level of the ‘customary salary’, the highest salary of the other (‘regular’) employees will also be relevant. The group of employees whose salary must be taken into account in this context is being extended. This extension is particularly significant for partners within partnerships (e.g. tax advisors, attorneys, physicians and architects). A transitional arrangement will apply for 2015.1 January 2015 - no end date

Tax benefit for staff loans may cease to apply

Action: Review staff loans for own homes

If you, as an employer, have provided your employees with an interest-free loan for the purchase or improvement of their primary residence, the interest benefit may, under certain conditions, currently be valued at zero.In April 2014, the Minister of Finance indicated that he wishes to abolish this scheme. The Tax Plan states that these changes will be included in the legislative proposal later this year as part of the Tax Collective Act 2015. As a result, the existing tax-advantageous scheme for you and your employees will likely cease to apply per 1 January 2015.Unknown - no end date

Introduction of bridge unemployment benefit

Action: Evaluate whether this can be applied

when recruiting new employees

The introduction of a new ‘bridge unemployment benefit’ will take place on 1 January 2015. This measure supports employers in their facilitation of the ‘from work to work’ process. The employees concerned will retain their unemployment benefit during their (re)training, and will, in most cases, also receive salary for the hours worked. This will lead to a reduction in transition costs for the new employer. In addition, in 2015 and 2016, the entitlement to childcare allowance during unemployment will be extended from three to six months. This means that parents will be able to make use of subsidised childcare for a longer period while seeking new employment.1 January 2015 - no end date

Changes to unemployment benefit

Action: Determine the impact for employees

The legislative proposal for the Work and Security Act, which has already been adopted, includes a number of changes as regards unemployment benefit.The following changes will be implemented on an expedited basis per 1 July 2015 instead of 1 January 2016. Settlement will be made on the basis of income rather than on the basis of hours, so that working while in receipt of unemployment benefit will always be worthwhile. Moreover, from that date all socially-accepted work will count as ‘suitable work’ after six months of unemployment benefit.The measure included in the legislative proposal for the Work and Security Act for the gradual reduction of the maximum duration of unemployment benefit from 38 to 24 months (1 April 2019) will (still) take effect on 1 January 2016. Employers will still have scope for making arrangements within the Collective Bargaining Agreement for any supplement to 38 months at the employer’s own expense.1 July 2015 - 1 April 2019

Budget Day 2014 7

BusinessThe government, too, is going to pay corporate income tax

Action: Identify which activities count as business

activities

As from 2016, Dutch legal entities under public law will be subject to corporate income tax to the extent that they carry on an enterprise, in accordance with the ‘taxed-unless’ principle. The individual enterprises of central government will also become taxpayers. If there are several enterprises, they will be deemed to form a single enterprise. Exemptions will apply under certain conditions, for example for academic hospitals, educational institutions and seaports. There will also be exemptions for Dutch legal entities under public law as regards internal activities, government duties and partnerships. For government bodies under private law, an exemption for quasi-internal procurement operations may apply. Under the new system, around 5,000 entities will become liable to tax for the first time.1 January 2016 - no end date

Foundations and associations with more than one enterprice

Action: No action required

If your foundation or association has more than one enterprise, these will be deemed to form a single enterprise. One of the consequences is that the results of those various business activities will be balanced. This existing policy will be codified in statute with effect from 2016.1 January 2016 - no end date

Reduced VAT rate for refurbishment and renovation services extended to 1 July 2015

Action: Pay careful attention to the completion

date of your refurbishment work in order

to profit from the reduced VAT rate

If you perform work on existing homes (older than two years), the reduced VAT rate (6 per cent) will continue to apply to the labour component of these services for a further six months. The standard VAT rate of 21 per cent will apply for work completed after 1 July 2015.1 March 2013 - 30 June 2015

Interest on tax due and dividend withholding tax

Action: Pay your dividend withholding tax on time

Late payments of dividend withholding tax are no longer exempted from interest on tax due. The converse also applies: as from 1 January 2015, the tax authorities will also pay you interest on refunds of dividend withholding tax. These new rules apply with effect from 1 January 2015 but will have retroactive effect to earlier years.1 January 2015 - no end date

VAT exemption for in-patient care even if the healthcare institution aims to make a profit

Action: Medical service providers need to modify

their invoicing systems, accounting

systems, and in some cases their pricing

Currently, the VAT exemption for in-patient care, i.e. the nursing and care of persons taken into an institution (hospitals and the like), applies on condition that the institution in question does not aim to make a profit. This also applies as regards services closely linked to this care, such as the provision of food and drink, medicine and bandages.

Financial change

Policy change

Administrative

Restructuring change

Budget Day 2014 8

The amendment is connected to the entry into force of the ‘Wet vergroten investeringsmogelijkheden in medisch specialistische zorg’ (Enhancement of Investment Opportunities in Specialist Medical Care Act) (aimed to enter into force on 1 January 2015). As from the commencement date of this amendment, the condition of not-for-profit will no longer apply as regards the exemption for the aforementioned in-patient care and the services closely connected with it. This means that for-profit institutions that perform services of this type will no longer be able to charge any VAT and will no longer be able to deduct VAT related to the costs of these services. This may affect the pricing of certain services. 1 January 2015 - no end date

Foreign fines no longer deductible

Action: No action required

With effect from 2015, a fine imposed on your enterprise by a foreign government or government institution will no longer be deductible from profit. This means that domestic and foreign fines will no longer be treated differently. The restriction on deduction applies to all fines, including the fines imposed under criminal law, disciplinary

law and administrative law, as well as parking fines. You will no longer be able to deduct settlements concluded with foreign governments either.If you reimburse foreign fines imposed on your employees, this reimbursement will be taxable salary that is not eligible for the final levy.1 January 2015 - no end date

Deductibility of compensation of tier 1 capital for insurers

Action: Check whether the conditions have been

satisfied

As an insurer, with effect from 2015, you may under certain conditions deduct the compensation paid for specific supplementary tier 1 capital instruments from profit. A proposal was made earlier this year to treat supplementary tier 1 capital at banks as loan capital for tax law purposes. That means that the remuneration on those instruments is tax deductible at the level of the bank under certain conditions and is taxable at the level of the recipient. A similar provision is now going to apply for insurers as well.1 January 2015 - no end date

Budget Day 2014 9

Private clients First tax bracket wage and personal income tax raised

Action: No action required

In 2015, the rate of the first bracket in wage and personal income tax will be raised from 36.25 to 36.50 per cent. This raise is less than was announced in the 2014 Tax Plan (36.76 per cent). The rates in the other tax brackets are left unchanged.1 January 2015 – 31 December 2015

General tax credit reduced more quickly

Action: No action required

Any personal income tax and national insurance contributions you owe will be reduced by, among other things, the general tax credit. The higher your income, the lower the amount of this tax credit will be.The proposed reduction percentage for the general tax credit will go up for 2015 to 2.32 per cent and, for the tax year 2016 and beyond, to 3.32 per cent. As a result, the general tax credit for 2015 will amount to at most EUR 2,203 and at least EUR 1,342.1 January 2015 – 31 December 2017

Employed person’s tax credit higher

Action: No action required

If you receive employment income, you will generally be entitled to a reduction of tax and national insurance contributions due, via the

employed person’s tax credit.Your employer will take this into account when making withholdings from your salary. From a certain income level, the amount of the employed person’s tax credit is reduced proportionately as your income rises. This reduction level will be raised to approximately

Financial change

Policy change

Administrative

Restructuring change

Budget Day 2014 10

EUR 49,900 for 2015. Further raises will follow for 2016 and 2017. As a result, the employed person’s tax credit for 2015 will amount to at most EUR 2,200 and at least EUR 184. 1 January 2015 – 31 December 2017

Immigration and emigration tax credit

Action: No action required

If you reside in the Netherlands for part of the year, you will still receive the entire tax part of the tax credit in 2015. At present, you would be required in principle to reside in the Netherlands for the entire year. From the tax year 2016 onwards, the tax portion of the tax credit will be awarded on a time-proportionate basis for the period you resided in the Netherlands. The ‘qualifying foreign taxpayers’ will be treated similarly as Dutch residents in this respect.Incidentally, the tax credit for national insurance contributions has already been determined on a time-proportionate basis since 1 January 2013. The relevant criterion is the part of the year during which someone is covered by the Dutch social security system. 1 January 2015 - no end date

Number of arrangements for children reduced

Action: Determine the changes relevant for you

If you are currently using any existing tax arrangements for children, you will be confronted with some changes per 1 January 2015. On 1 January 2015, the number of arrangements for children will be reduced from eleven to four: the child benefit, child budget, combination tax credit and childcare allowance.The other arrangements: the supplement for single parents on benefits, the (supplementary) single parent tax credits, WTOS17-, LOK, the parental leave tax credit and the TOG will disappear or be included in the four remaining (modified) arrangements. The aim of these measures is to harmonise the financial allowances for all low-income single parents (whether working or on benefits). 1 January 2015 – 31 December 2015

Elderly deduction virtually unchanged

Action: No action required

If you have reached the pensionable age, you are eligible for the elderly deduction. This deduction amounts to EUR 1,042 (2014: 1,032) if your income in 2015 does not exceed EUR 35,770. It amounts to EUR 152 for higher incomes. The elderly deduction will be reduced by EUR 83 annually as from 2016.1 January 2015 – 31 December 2016

No elderly allowance in box 3 as from 2016

Action: Check your box 3 position

Are you entitled to a state pension and do you have a box 1 income in 2014 of at most EUR 19,895 and box 3 capital in 2014 of at most EUR 279,708? If so, in the present situation a larger part of your box 3 capital will be untaxed than is the case for other taxpayers. This allowance for the elderly will be discontinued as from 2016.1 January 2016 - no end date

Change in reduction of the child budget

Action: Determine the changes relevant for you

If you are using the child budget, you may be confronted with some changes per 1 January 2015. The potential benefit amounts will be increased and single parents will receive (a maximum of) EUR 3,050 extra with the introduction of the single parent supplement.In addition, your means-test income will be related to the minimum wage. This means that the allowance will come down in steps for incomes of EUR 19,767 or higher. At present, the reduction only commences at the EUR 26,146 level. Consequently, the child budget will be reduced sooner, but at a lower percentage. That percentage goes down from 7.6 per cent to 6.75 per cent. The exclusion of parents with own assets (box 3 assets) amounting to more than EUR 81,360 (after application of the tax-free threshold) will be maintained. 1 January 2015 – 31 December 2015

Budget Day 2014 11

PensionAnnuity cash conversion for people with long-term occupational disability

Action: If you are disabled, you could find out

whether you satisfy the conditions for

converting your annuity capital into cash

at this time

As from 1 January 2015 it will be possible for people with long-term occupational disability to commute their annuities partially or entirely without incurring any penalty interest. As a result, annuity capital can serve not only as retirement income but also to provide immediate income in the event of occupational disability. However, such conversion is subject to certain conditions. For example, the maximum commutation amount per calendar year has been capped. Payroll taxes will be withheld on the commutation amount in the usual way. Incidentally, the commutation facility will also apply to the net annuity arrangements to be introduced on 1 January 2015.1 January 2015 - no end date

Introduction of net pension and net annuity

Action: Check whether you, as an employer,

intend to introduce a net savings facility

for your employees

As per 1 January 2015, your employees’ fiscal options for pension accrual will be curbed. The maximum accrual rates will be reduced. To the extent that an employee has an income in excess of EUR 100,000, he will no longer be able to build up a tax-favourable pension. For those high earners a voluntary net-savings facility is introduced as an alternative. This can take the form of a net pension or net annuity. The deposits are not tax-deductible and future distributions will not be taxable in the Netherlands. If all conditions are satisfied, a box-3 exemption will apply to your employee for either form. The maximum net contributions are age-dependent. Net pension can be administered by pension funds and insurers, and the net annuity by insurers and banks. 1 January 2015 - no end date

Tax-friendly surrender of entire life-course savings balance reintroduced

Action: Consider whether this would be an

attractive option for you

In 2012 the life-course savings scheme was terminated. In 2013 it was possible to withdraw the entire balance (with regard to entitlements as at 31 December 2011). In that event only 80 per cent would be taxed. This possibility is reintroduced in 2015 for remaining savings as at 31 December 2013.1 January 2015 – 31 December 2015

Financial change

Policy change

Administrative

Restructuring change

Budget Day 2014 12

Real estateDeductibility of residual debt expanded

Action: No action required

If you sell your home, it is possible that a mortgage debt remains. Per 1 January 2015, the maximum tax-deductible period for such remaining debt is extended from 10 to 15 years.

It should be noted that, while this measure has been included in the explanatory

memorandum to the 2015 Tax Plan, it has not yet been included in the present legislative proposal. 1 January 2015 - no end date

Three years’ mortgage interest relief for multiple homes

Action: No action required

If you haven’t yet sold your previous home, you may benefit from mortgage interest relief

for multiple homes for a certain period. This applies to a (former) principle residence that is still for sale as well as to a principle residence that you have not moved into yet. For both situations, as from 1 January 2015 the maximum period of relief will be - and remain - three years. Mortgage interest relief will also continue to remain available for the period of 3 years for a house that is put up for sale and is again vacant, after having been temporarily let.1 January 2015 - no end date

Financial change

Policy change

Administrative

Restructuring change

Budget Day 2014 13

Innovation and investments

R&D rebate only for businesses

Action: Determine whether you are still eligible for

the rebate

If you are currently using the R&D rebate in the wage tax for your employee, you will be confronted with some changes as per 1 January 2015. It will only be possible to apply for the R&D rebate if you carry on an enterprise. Contract research by public knowledge institutions is no longer covered by the R&D rebate. 1 January 2015 - no end date

R&D deduction unchanged at 60%

Action: No action required

If your company incurs costs (other than wages) that are directly attributable to innovation research conducted by your own employees, you are entitled to an additional deduction. The additional R&D deduction (RDA) amounts to a percentage of those costs. This has been provisionally set at 60 per cent for 2015, which is the same as last year. Incidentally, in response to comments from businesses, the government intends to

examine whether, as from 2016, the RDA can be combined with the R&D rebate to form a single, integrated scheme. 1 January 2015 – 31 December 2015

Financial change

Policy change

Administrative

Restructuring change

Budget Day 2014 14

MiscellaneousMaximum levy on tap water maintained

Action: No action required

As announced earlier, the maximum levy on tap water of 300 m3 and the existing rate structure are maintained. This means that a degressive rate structure will not be introduced. This existing policy will be codified in statute with effect from 2015. 1 January 2015 - no end date

Waste tax to include waste incineration, but rates go down

Action: No action required

Per 1 January 2015, both dumping and incinerating waste will be taxed with waste tax at a rate of EUR 13 per ton. Until now, waste incineration was untaxed, and the rate for dumping waste has been EUR 17 per ton. Recycled waste will not be taxed. Incidentally, waste offered for incineration for the purpose of generating electricity will also be subject to the levy.In addition, as from 1 January 2015 waste products brought into the Netherlands from abroad will be exempt from waste tax.1 January 2015 - no end date

Energy tax up

Action: No action required

Energy tax rates will go up, for natural gas as well as electricity. The rate for the first 170,000 m3 natural gas and the first 10,000 kWh electricity per twelve months will remain the same. For higher consumption, the rates for the next two brackets will go up for both natural gas and electricity. The rate for the highest brackets (over 10,000,000 m3 natural gas and over 10,000,000 kWh electricity) remains the same. Incidentally, these increases will be moderated again in 2017.

The amount by which the tax on the supply of energy to homes and other buildings with a residential function is reduced will be lowered in 2015 as well as in 2016 and 2017. As a result, the energy tax payable on the supply to these buildings will go up even further. Having said that, these increases amount to EUR 6, EUR 1 and EUR 2 annually (rounded).Furthermore, the reduction for the supply of energy to other real estate without a residential function will be discontinued. Also, the application of the reduced rate for sustainable self-generated electricity will be expanded per 1 January 2015 to include an ‘entrepreneurs’ category and, as from that

date, this rate will apply to all real estate, rather than only to homes.1 January 2015, 1 January 2016 and 1 January

2017 - no end date

Interest compensation on refunds based on EU law

Action: Request interest compensation with a tax

refund

If you receive a tax refund based on EU law, you are entitled to interest compensation. You must request such compensation within six weeks of the refund. For ‘old cases’ you may file a request until six weeks after 1 January 2015. You may do so even now. The right to interest compensation is currently based on case law.1 January 2015 - no end date

Financial change

Policy change

Administrative

Restructuring change

Budget Day 2014 15

Contact details

www.pwc.nl/prinsjesdag

Should you have any questions regarding this publication, please contact yourPwC tax advisor or the Knowledge Centre Tax & HRS.

Knowledge Centre Tax & HRS Telephone: +31 (0) 88 792 43 51Email: knowledge.centre.taxhrs@nl.pwc.com

In the Netherlands, over 4,700 people work together at PwC from 12 offices. PwC Netherlands helps organisations and individuals create the value they are looking for. We are a member of the PwC network of firms in 158 countries with over 180,000 people. We consider it our duty to deliver quality in the areas of assurance, tax and advisory services. Tell us what is important to you. For more information, please visit www.pwc.nl.‘PwC’ is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together these firms form the global PwC network. In this document, ‘PwC’ refers to the global PwC network, or, if this arises from the context, to the individual member firms of the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

This content is for general information purposes only, does not constitute professional advice and should therefore not be used as a substitute for consultation with professional advisors. PricewaterhouseCoopers Belastingadviseurs N.V. does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

©2014 PricewaterhouseCoopers B.V. (CoC 34180289). All rights reserved. PwC refers to the Dutch firm and may at times refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. Icons from www.freepik.com and www.flaticon.com.