Tax measures after the COVID-19 crisis
- Gé Sletterink
- 24 February 2020
- Edited 23 October 2023
- 3 min
- Managing and growing
To ease your financial burden because of the COVID-19 crisis, the Dutch Tax Administration created a number of temporary schemes. You can still use some of these. Others stopped earlier. Take a look at the overview and choose which measures suit your situation. Have you received one or more reminders from the Tax Administration? Then take action quickly.
These schemes are ongoing:
- Tax debt payment scheme
- End to reduced rate of recovery interest
- Reduction of provisional assessments
- Schemes for business owners with staff
- Other tax measures
Did you take advantage of the tax payment deferral? In April 2022, you would have received a statement of outstanding tax liability from the Dutch Tax Administration. In autumn 2022, you got a decision on your request. This will indicate when you have to start repaying. You have 5 years to do so.
If you cannot manage to repay in 5 years, you can ask the Tax Administration to extend the repayment period to seven years. This can only be done for debts of more than €10,000. You can make the request at any time during the 5-year period. Your request must show that you can repay the debt not in 5 years but in seven. Your business should be fundamentally sound and have only temporary payment problems. In the years before the pandemic, you must have made a profit. For debts above €50,000, the Tax Administration will need further substantiation. Upon request, you can pay quarterly instead of monthly.
Take action on late payments
Have you not yet met your payment obligations? In April 2023, the Tax Administration sent letters urging you to catch up on your arrears.
Did you not meet your repayment obligation and did not respond to letters from the Tax Administration? From mid-July 2023, the Tax Administration sent letters withdrawing the payment schedule. You will then have to pay the entire amount of the outstanding tax debt at once. Reminders were sent in October 2023. Have you received such a letter? If so, contact the Tax Administration. You can also get help with this.
Applying for a payment break on your tax debt payments
You can request a 6-month payment break (or moratorium) once in the repayment period. Are you behind on installment payments? Then you can request a payment break. You will then receive a new repayment schedule with higher instalments. You will then repay your debt in the period up to 30 September 2027.
Requesting payment arrangements
Payment plan adjustments can be requested (in Dutch) from the tax authorities.
No general waiver
There will be no general remission of tax debts. Is a payment plan not enough? In individual situations, the tax authorities can waive all or part of a claim, such as in an agreement based on the WHOA.
If you pay an assessment late, you have to pay recovery interest. This applies to all tax debts. Also for amounts in the repayment scheme. In the corona period, the recovery interest rate was close to 0%. Since 1 July 2023, the recovery interest rate has been 3%. On 1 January 2024, the recovery interest will rise to the old level of 4%.
Did you fail to file a tax return on time? Or not for the correct amount? Then you have to pay tax interest. The tax interest rate for corporate income tax is 8%. Tax interest for all other taxes subject to tax interest is 6%.
Do you expect lower earnings due to the COVID-19 pandemic? If you pay a provisional income tax or corporation tax assessment now, you can reduce it. That way, you pay less tax right away.
Unblocking your g-account
Companies with g-accounts, such as those that send, supply, or second and use staff, can apply to theTax Administration to unblock the balance in those accounts. A deferral of payment must have been applied for in respect of payroll tax or VAT. The relaxed unblocking policy will be in place until 1 October 2027.
Normally, when unblocked, only the surplus in the g-account can be released. Now, amounts set aside for payroll taxes or VAT are also temporarily released. If these entrepreneurs have applied for deferral of payment, this gives them the same deferral conditions as entrepreneurs without a g-account.
Exemption of subsidies received
Subsidies received under the Reimbursement for Fixed Costs (TVL) and the Reimbursement for entrepreneurs in affected sectors (TOGS) are exempt from income or corporate income tax. This exemption also applies to the one-off Storage Catering Industry Stock and Adjustments (HVA).