Update 2022: Abolition of fiscal old-age reserve

In the Spring Memorandum 2022, the government indicated that it intended to abolish the old-age reserve as of 1 January 2023. Have you built up an old-age reserve through this scheme before that time? Then it can still be settled on the basis of the rules below. The main reason for abolishing the FOR is that in about half of the cases the reservations are not used as old-age provision.

What is the fiscal retirement reserve?

The fiscal old-age reserve (FOR) is a part of the profit you have made in a year, which you can set aside to save for your retirement provision. You do not have to pay tax on that amount for the time being: you will receive a deferment of paying tax.

The addition to your retirement reserve over a calendar year is 9.44% of the profit, with a maximum of €9,632 in 2022. You reduce the addition by the pension contribution that you have already deducted from the profit.

How much can I add to the old-age reserve each year?

For the tax year 2022, the addition to the old-age reserve is 9.44% of the profit that you have achieved as an entrepreneur in the Netherlands. The maximum addition is €9,632 per year, but due to the addition, the old-age reserve may not exceed the company's assets.. Have you already deducted pension contributions from the profit? Then you have to reduce this amount to the maximum amount.

Is it advantageous to build up a fiscal retirement reserve?

Every year that you add an amount to the old-age reserve, you get a deferment of tax payment on that amount. This means that you have to pay less income tax over that year. In many cases, this will be advantageous: you will get a deferment of paying taxes. But with the old-age reserve alone, you have not yet built up an old-age provision or pension. The amount that you reserve for the FOR, you can of course actually reserve for later, for example by investing it in an annuity policy. But in many cases, the scheme is used as a deduction on a fictitious reservation. It is a fiscal means of postponing the payment of tax.

So you have to save yourself for the fiscal retirement provision and the moment you stop as an entrepreneur, you often still have to pay tax on the reserve. If you have not actually saved this amount, it can turn out to be annoying.