As usual, 2023 also promises to be a year of many changes. What tax, financial and legal innovations should you take into account as an entrepreneur? We list some of the most important points here.
What is changing on the tax front?
Tax benefit second home
2023 will be the last year in which you can still enjoy a tax benefit (federal tax credit) for your second home. For mortgage loans taken out after 2024, this tax benefit will expire.
Commercial vehicles taxed more heavily
When calculating the benefit in kind for company cars, CO2 emissions play an important role. To further achieve the greening of car taxation, the reference emissions for calculating the benefit fell sharply. However, this increases the taxable benefit.
The deductibility of fuel costs for hybrid cars will also be limited starting this year. More on this in our previous article.
Abolition of notional interest deduction
2023 will be the last year in which the notional interest deduction can be applied. All fiscal years closing after 31/12/2023 can no longer benefit from this tax measure. Given the low rates, the impact of this change will be rather limited.
End of increased investment deduction of 25%
The end of 2022 also brings about the end of the temporarily increased investment deduction in the amount of 25%. Investments in 2023 - if all other conditions are met - can still only enjoy a tax benefit of 8%.
Want to know more about additional tax changes?
Check our article on the additional invoice entry with VAT reverse charge here
Check out our article on the VAT Administration position for fitness centers here
What will change financially?
Prediction of interest rates
Due to exceptionally high inflation rates, the European Central Bank (ECB) predicts a contraction of the economy during the first 2 quarters of 2023. Starting in the third quarter, there would be steady economic growth again.
Given that the inflation forecast for 2023 is fixed at 6%, the ECB will most likely raise its policy rate further during the year. This would impact the economy to varying degrees, including bank interest rates. As a result, a moderate interest rate hike in 2023 is likely.
This is obviously only a prediction of the evolution of interest rates. The real evolution of interest rates may differ from this, since interest rates depend on a large number of macroeconomic indicators.
What is changing on the legal front?
New contract law
On Jan. 1, 2023, new contract law went into effect. This may have an impact on the contracts you have entered into as a business owner.
An important point to take into account during negotiations, is that your counterparty or client may indicate (before or shortly after acceptance) that it does not wish to be bound by (all or certain of) your terms and conditions that conflict with its own terms and conditions.
Go over your counterparty's terms and conditions in a timely manner so that you as a business owner can anticipate them even before the conclusion of the contract.
Impact for you as an employer
A lot of changes are also coming your way as an employer-entrepreneur. Just think of the expansion of flexi-jobs. From now on, employers from the following sectors will also be able to use flexi-jobs: PC 223 (sports), PC 303.03 (operation of movie theaters), PC 304 (entertainment business) and PC 330 (private health facilities and services).
Also consider indexation, due to "automatic wage indexation," gross wages in most industries have increased substantially as of Jan. 1, 2023. Depending on the sector within which the company is located, the indexation scheme applied may vary thoroughly. For example, wages in certain sectors will be indexed not once a year, but several times. So be sure to check which exact regulation applies to your company.
Want to know more about the purchasing power premium, the deferral of employer NSSO contributions or what brought about the Labor Deal? Then check out our previously published article here.
Do not hesitate to contact us here contact us with questions.
Wish to have a conversation about what exactly is changing for your business and how to deal with it? Then make an appointment here with our pro experts!
