Covid19 update January 2021: Dutch government extends and announces tax measures
In light of the COVID19 pandemic, the Dutch government has extended and announced the introduction of several COVID19 related tax measures. The most important measures are summarized below.
- Emergency payment deferral regime
The emergency payment deferral regime allows taxpayers a deferral for payment of qualifying taxes. The possibility to apply for the emergency payment deferral regime (or an extension of a deferral already granted) expires on July 1, 2021 (previously extended to April 1, 2021).
The prolonged payback period of 36 months for the deferred tax liabilities granted under the emergency payment deferral regime, will commence on October 1, 2021 (was July 1, 2021).
- NOW 3.0 scheme extended
The NOW is a temporary fund, established to compensate employers incurring revenue losses due to the COVID19 pandemic so that they can continue to pay their employees. NOW3 will now compensate up to 85% (previously 80%) of the total wage sum.
- Travel allowance
Travel allowances of a fixed and regular nature may be reimbursed tax free, even if these expenses are no longer (fully) incurred as a result of working from home. These allowances may be granted tax free until April 1, 2021 (was February 1, 2021).
Please be advised that the tax free travel allowance is subject to the condition that the employee had an unconditional right to this travel allowance before March 12, 2020.
- Substantial shareholders’ deemed wage (gebruikelijk loon)
A shareholder who owns a substantial shareholding (5% or more) in a Netherlands based entity and who also performs personal activities for this entity, is deemed to receive at least a ‘normal wage’ for Dutch wage tax and personal income tax purposes. Under the COVID19 related measures, substantial shareholders may temporarily reduce the income they are deemed to receive.
Please be advised that, in order to apply for the reduction in 2021, a minimum amount of revenue loss must have been incurred compared to 2019. For 2021 a loss turnover of at least 30% must be incurred in comparison to 2019.
If you have any questions with regards to the above, please do not hesitate to contact our office at +31 (0) 85 0187471 or via firstname.lastname@example.org. We are continuously keeping up with all the announced changes so we are able to act fast and work efficiently to help minimize the consequences of the COVID19 pandemic.