Covid-19 is also having a far-reaching Impact on the Dutch Business community and the financial economic consequences are substantial.
Andreas Müller
Tax & Legal Partner
Covid-19 is also having a far-reaching impact on the Dutch business community and the financial economic consequences are substantial. Therefore, the Dutch government has taken several emergency measures to support Dutch companies.
In summary the following instruments were implemented to support the economy.
Measures to Reduce Cash Out
General/default deferral of payment for taxes for a 3 months period. Requests for a deferral of payment for more than 3 months can be requested.
The deferral of tax payments will also apply for other business relevant taxes such as excise duties/energy taxes.
As per 23 March 2020, the late payment interest for all tax debts has been reduced from 4.0% to 0.1% for a period of three months.
There will be no late payment fines.
Non-tax measure for wage costs subsidy.
Possible Cash Refund
Provisional tax invoices that have already been paid and are expected to be too high can be reclaimed.
Corporate taxpayers may consider – if the financial year 2020 results in a tax loss – to include a ‘Corona reserve’ in their calculation of the 2019 result for the expected 2020 loss. The tax paid for the financial year 2019 on provisional tax invoices can therefore be partly or fully refunded, as the 2019 result is reduced with the expected 2020 loss. With this, the tax payer may get back cash tax paid immediately, whereas ordinary rules would only allow to file a carry back request after the 2020 financial year.
Please do not hesitate to contact us if you are interested in more detailed information.
