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Written by:
Bas Hollenberg


Reduced tax rate on renovations extended

Have you started construction or renovation on a house which is older than two years before July 1? Then the lower tax rate of 6% still applies to the labour if the work is finished before October 1, 2011. It is important that the work was commenced before July 1, 2011. This must be apparent from the records of the contractor. This means that the reduced rate does not apply if an agreement has been made for the job but it has not been finished. The construction or renovation is complete when the work done is accepted which can be proved by the fact that the work is paid.

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