Temporary tax relief measures in the Netherlands
Taxpayers can file a request for an extraordinary deferral of the payment of personal income tax, corporate income tax, VAT and wage withholding tax. The deferral will in principle be granted, and if taxes are due then these tax collections can be put on hold, if the taxpayer demonstrates in writing that the COVID-19 pandemic has led to financial problems.
Administrative penalties for late payment of taxes are not going to be issued or are going to be reversed.
- The interest rate on unpaid taxes (belastingrente), which currently amounts to 8% for corporate tax and 4% for other taxes, will be lowered to 0.01%. Interest on unpaid taxes is normally due if an assessment is not paid on time.
- The recovery interest rate (invorderingsrente) will be temporarily reduced from 4% to 0.01% for all taxes as of 23 March 2020.
- The interest on tax due for all taxes to which this applies from 8% (corporate income tax) and 4% (other taxes) to 0.01%. Interest on tax due is payable if an assessment cannot be imposed before the deadline, for example because the tax return is not filed on time or for the correct amount. The reduction to 0.01% applies also until October 1, 2020 and has taken effect from 1 June 2020, with the exception of personal income tax for which an effective date of 1 July 2020 applies.
Entrepreneurs make advance tax payments on basis of provisional tax assessments, that are based on an estimated annual profit. Taxpayers that expect a lower profit as a consequence of the corona crises can file a request to reduce the advance tax payments. The tax authorities will approve in principle to such request.
Brouweel
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