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Simplifying the calculation of the tax space for pension entitlement for the self-employed · Accounting This Morning

Simplifying the calculation of the tax space for pension entitlement for the self-employed · Accounting This Morning

The self-employed organizations, the Chamber of Commerce (KvK), Nibud, VNO-NCW, MKB Nederland and the Association of Insurers later united in the Income Action Group. Several studies have shown that self-employed people accumulate a limited pension in the third pillar for various reasons, such as unfamiliarity with tax limits. The Dutch Authority for the Financial Markets (AFM) has highlighted this issue and provided advice on improving familiarity, accessibility and comparability of pension products.

The task force takes these recommendations seriously and wants to stimulate wealth accumulation among the self-employed. This includes setting up a targeted media campaign and creating a neutral information point. The common goal is to make building income for the future easier, simpler and more transparent for freelancers in the Netherlands. The Ministry of Social Affairs and Labor (SZW) supports this initiative and wants to work together to improve awareness of pensions among the self-employed.

Annual financial space for pension entitlement

The task force is particularly focused on simplifying the calculation of the annual fiscal space available for pension entitlement. This is currently considered time-consuming and complex for self-employed people. The task force proposes to make this information transparent in the annual tax return, which is expected to be effective.

WTP

According to the taskforce, the introduction of the Future Pensions Act (Wtp) provides new opportunities to increase awareness of pensions among self-employed people. With the expansion of fiscal space in the third pillar and increased interest in pensions due to this change in law, it is important that self-employed people are aware of the possibilities this offers. The working group emphasizes that Pillar Three pension entitlement is often financially attractive, with tax advantages on contributions and tax-free capital accumulation.

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