Payment extension for several taxes
You can apply for a payment extension of 3 months for all your income tax, corporate tax, payroll tax, and turnover tax (VAT) assessements at once, by filling out an online form (in Dutch). You need a DigiD for this, but if you don’t have one, you can ask an employee or a financial advisor to login for you, using their DigiD. You will need to fill out your RSIN number or your citizen service number (BSN), so keep these ready. The Dutch Tax Administration will put on hold any measures in place to collect payment immediately upon reception of your request. You can also change your provisional assessment, to lower your financial obligations.
Lower tax interest rates
The tax collection interest rate was lowered from 4% to nearly 0% at the beginning of the corona crisis. It will remain nearly 0% until 1 December 2021. Tax collection interest is the interest you pay over a tax debt.
The tax interest rate was also lowered, from 8% (corporate income tax) or 4% (other taxes) to nearly 0%. From 1 October 2020, the tax interest rate will be increased to 4% for all taxes, including corporate income tax. Tax interest is the interest you pay if the Tax Administration cannot assess your tax return in time, for instance because you have filed your return too late or incorrectly.
No tax on TOGS and TVL
No tax will be levied on the funds you have received under the schemes Reimbursement for businesses affected by the corona measures (TOGS) and Reimbursement for Fixed Costs SMEs (TVL).
No VAT on face masks
You do not have to pay VAT on the supply of face masks in the period 26 May – 31 December 2020. If you sell face masks, you may continue to deduct pre-tax. The government takes this measure to make face masks more cheaply available, as the use of face masks has been mandatory in public transport since 1 June.
VAT rules eased to help the care sector
Businesses that second care personnel or donate medical equipment or devices will not have to deal with the usual VAT rules concerning these actions. This will ease the administrative and financial burden in the care sector.
Also, the low VAT tariff of 9% applies to cotton tips and bandaging materials used for medical purposes, such as COVID-19 testing. These measures are in place from 16 March through 31 December 2020.
Online sports lessons back to normal VAT tariff
On 1 July, sport schools re-opened. For that reason, the temporary low VAT tariff of 9% no longer applies to online lessons. The low tariff applied from 16 March – 1 July.
Hours criterion relaxed
Some tax deduction schemes such as private business ownership allowance, working partner’s abatement and retirement reserve require a minimum number of 1,225 hours spent working in your company per year, or approximately 24 hours per week. The corona crisis may make it impossible for businesses to meet this criterion. For that reason, you are allowed to claim you have spent 24 hours a week on your business during the period 1 March – 1 September, even if you have not.
Corona reserve for corporate tax 2020
The Tax Administration will allow businesses to deduct losses from their profits in the 2019 corporate tax return. This way, businesses can build a corona reserve. This may help to keep your cash flow at an acceptable level.
Customary salary for DGA’s lowered
If you are a director or major shareholder (DGA) in your company, you have to meet a so-called customary salary (‘gebruikelijk loon’), over which your company levies payroll taxes. For 2020, it will be possible to lower your customary salary proportionate to your company’s turnover loss. This means you will have to levy less payroll tax.
More time for some changes in legal structure, mergers or divisions
In some cases, you can take more time to change your company’s legal structure or to arrange a company merger or division. See the conditions (in Dutch) on the Tax Administration website.
See the Dutch Tax Administration website (in Dutch).
Apply for a reduction of your provisionary assessment
Do you expect lower profits due to the coronavirus, and are you currently paying a provisionary assessment for income tax or corporate income tax? You can change your provisionary assessment. Go to the online portal for individuals: MijnBelastingdienst (in Dutch); to change a corporate tax provisionary assessment, go to the business portal: MijnBelastingdienst Zakelijk (in Dutch).