COVID-19 – Dutch Tax Implications
On March 12th, 2020 the Dutch government announced a set of measures to help mitigate the economic effects of the coronavirus outbreak. We are, by way of this news release, advising you of the tax implications that result from these measures.
1. Deferral of payment
In order to curb any liquidity problems that businesses may face, an extraordinary deferral for the payment of Personal Income Tax (inkomstenbelasting), Corporate Income Tax (vennootschapsbelasting), VAT (omzetbelasting) and wage tax (loonbelasting) is in effect.
Taxpayers must request this deferral in writing, whereby the request must explicitly state that it is being sought because of problems caused by the corona crisis. Please note that an expert’s certificate from, for example, an external auditor, tax consultant or financier must be included in this request, if this request exceeds a 3 month’s period. The Dutch Tax Authorities (“DTA”) will, upon receipt of the request, suspend any tax collection measures immediately. The actual assessment of the deferral request, to which the regular conditions for a deferral still apply, will take place at a later time.
We at Briddge are more than happy to assist you with this matter, as per your request. Please be advised, however, that time is of the essence as the request must be filed within 4 weeks.
In addition, in the coming period, to accommodate entrepreneurs, the DTA will not impose an administrative fine (verzuimboete) in cases of non- or late payment. Where such a fine has already been imposed, it will be reversed or waived.
Please contact Briddge if a fine was imposed. We will contact the DTA on your behalf to make sure that the fine will be reversed or waived.
2. Provisional assessment
Taxpayers who pay tax based on provisional individual or corporate income tax assessments, and expect that their taxable income will be lower due to the corona crisis, may request the DTA to issue them a lower provisional assessment. The DTA will grant these requests. As a result, taxpayers will immediately pay less tax.
Please contact Briddge if you wish to request a lower provisional assessment. We will be able to contact the DTA on your behalf to make sure that the necessary steps are taken.
3. Temporary reduction of tax interest
As per March 23rd, 2020 the interest rates for late payment of taxes (invorderingsrente) is lowered from 4% to 0.01% for all tax debts.
In addition, as per June 1st, 2020, the tax on interest (belastingrente) is lowered. This means for Corporate Income Tax that the current rate of 8% is lowered to 0.01%. For all other taxes, the current rate of 4% is lowered to 0.01%. Please be advised that the tax on interest for Personal Income Tax will be lowered as per July 1st, 2020.
We at Briddge understand that you are currently facing unusual circumstances because of the pandemic sparked by the corona virus. As such, we will try our best to assist you on all taxrelated matters to make sure that the financial and economic impact of this pandemic will be as minimal as possible for you and for your business. If you have any questions or would like to receive more information, please feel free to contact our tax team at firstname.lastname@example.org or call our office at +31 (0) 85 0187471.