Another legal change? Here’s what entrepreneurs need to know

1. Every kilometer counts

Do your employees spend a lot of time on the road? Starting from Q3 2024, you’ll need to budget a bit more for mileage expenses. The mileage allowance is set to rise to €0.4297 per kilometer. The good news? These allowances are tax-free and exempt from social security contributions, meaning every cent goes straight into your employees' pockets.

Source: LWB

2. Sustainability takes center stage

As of July 1, 2024, the EU’s Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) is in effect. This directive obliges companies to implement sustainability measures within their supply chains, focusing on human rights and environmental impact. Think about addressing issues like child labor, slavery, and exploitation, as well as minimizing pollution, deforestation, and water waste. In addition to these responsibilities, businesses must adjust their climate goals and provide transparent reporting.

Large companies need to comply by 2027, while medium-sized businesses have a bit more time. Although many companies are already making strides toward sustainability, this directive serves as a clear roadmap for further efforts.

Source: Pantarein

3. Hybrid or electric? Tax benefits still apply—for now

If your fleet includes plug-in hybrids or electric vehicles, here’s some good news: you can still enjoy 100% tax deductibility for plug-in hybrids purchased between 2023 and 2025. However, starting in 2025, this benefit will begin to phase out. Another heads-up: from 2024, fuel costs for hybrid cars will only be 50% deductible. The most significant tax advantages still come from electric vehicles, with full deductibility until 2026.

Source: Moore

4. Bigger investment deductions for digital and green projects

Beginning January 2025, investment deductions for digital and innovative projects will get a boost. Deductions for digital assets like software and IT systems will double from 10% to 20%. Investing in innovation, especially in industries like biotech and technology, can net you a deduction of up to 20.5%. And for green initiatives—such as solar panels—the deduction can go as high as 40%. Just a note: fossil fuel projects aren’t eligible.

Source: Practicali

5. Warrants as bonuses—also for SMEs

Offering bonuses in the form of warrants can be a savvy choice for your company. Warrants are exempt from employer contributions and 100% tax-deductible. For employees, they’re more tax-friendly than traditional bonuses because they’re not subject to social security contributions, making them 13.07% cheaper. Best of all? SMEs can also take advantage of this option.

Source: Ondernemersdatabank

6. Working from home just got more attractive

Since June 1, 2024, working from home has become even more appealing for employees. The tax-free home office allowance has increased to €154.74 per month. This allowance applies to employees who work from home at least one day per week and helps cover expenses like rent, utilities, and office supplies. Got part-time employees? They’re eligible for this higher amount too!

Source: Acerta

7. Tax perks for start-ups: give your new business a boost 🚀💡

If you’ve just launched your business, there are plenty of tax perks to help you hit the ground running. Here are some highlights:

• Exemption from corporate contributions for the first three years
• Exemption from tax increases
• Payroll tax withholding exemptions ranging from 10% to 20%
• Investors in small businesses can enjoy tax reductions of 30% to 45% through the Tax Shelter
• Exemption from withholding tax on interest from loans

These measures aim to give young businesses a strong start, with a little extra tax support.

Source: Lemon Consult

8. More flexibility for non-profits

Good news for non-profits: since January 7, 2024, the size criteria have been significantly relaxed. As a micro non-profit, you can now generate up to €900,000 in revenue, and as a small non-profit, up to €11.25 million—without additional administrative burden. Smaller non-profits benefit from less stringent accounting obligations and more breathing room. Larger non-profits, however, are still required to appoint an auditor and manage more complex accounting processes.

Source: IBR-IRE

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