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Tax measures related to coronavirus

On 12 March 2020, the Dutch government announced several measures to support the Dutch economy and to help businesses with respect to the expected economic setback resulting from the coronavirus. Although there is still a lot of uncertainty, hereafter we provide you with a summary of those measures and how we can help you to apply these measures in practice.

 

SPECIAL DEFERRAL OF PAYMENT

For the Dutch personal income tax, corporate income tax, value added tax and wage taxes, it is possible to obtain, under conditions, a deferral of payment.

In order to help businesses cope with liquidity problems, the Dutch government has decided to grant businesses, on request, a special deferral of payment. Levy of these taxes shall be stopped as soon as a substantiated written request for special deferral is received by the Dutch tax authorities. The request will be manually assessed at a later date with the usual requirements.

If you wish to take advantage of this postponement, please contact your contact at Taxperience. We will then examine the possibilities in cooperation with the relevant specialists within Taxperience and, if possible, submit the request.

 

PENALTIES

No levy of default penalties.

The Dutch tax authorities indicated that it will not levy any default penalty for non- or late payment and to reverse the fines levied. This is in line with the Special Deferral of Payment. Since these requests need to be handled manually, the assessment terms may increase. Therefore, we recommend to file a request to the Dutch tax authorities timely and correct in which we are more than happy to assist.

 

REQUEST REDUCTION OF PROVISIONAL ASSESSMENT

Reduction of preliminary personal income tax or corporate income tax is possible.

Though the preliminary personal income tax and corporate income tax, the Dutch tax authorities levies the expected personal income tax or corporate income tax, in instalments, throughout the year. This preliminary tax is then corrected by the final declaration.  If a business expects to make a lower profit through the coronavirus, it is possible to adjust the preliminary personal income tax or corporate income tax. As a result, the tax due decreases immediately. The Dutch tax authorities will grant these requests.

Please note that if tax is due when filing the final tax return and this return is filed after 1 May for the personal income tax or 1 July for the corporate income tax, the Dutch tax authorities may charge interest on the amount due. The interest rate is 4% for personal income tax and 8% for corporate income tax liabilities.

Taxperience can draft and submit the application for reduction of the preliminary personal income tax or corporate income tax for you. Please contact your contact person. We will then assess, in consultation with you, what the possibilities are and then have the request drawn up by the specialist department within Taxperience.

 

OTHER MEASURES

In addition to some fiscal measures, other economic measures have also been announced.

It has been announced by the Dutch government that on both national and international level they will assess which measures are needed to mitigate the economic consequences of the coronavirus. To this end, some concrete commitments have been made by the Dutch government. This concerns the Reduction in Working Time possibilities and the extension of the Guarantee of SME credits.

If you have any questions about these arrangements, please call or email us.

 

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