As part of a broader package aimed at protecting employment and the economy, the Dutch government on 17 March 2020 announced the following tax measures:
- Relaxation of rules for special deferral of payment of income tax, corporate income tax, VAT and wage tax.
- Under normal rules a request for deferral of payment for tax assessments that are due and payable should be supported by a certificate of an expert (e.g. external auditor, branch organisation, (tax) consultant or financier) explaining that payment issues are of a temporary nature due to the coronavirus, and taxpayer's business is viable.
- As of 17 March 2020, deferral of payment is immediately granted upon request. The expert report may following within 4 weeks, and the tax authorities will further specify what the contents of the expert report need to be.
- Upon receipt of the request, the Dutch tax authorities will immediately cease to collect the due taxes. Penalties for late payment of VAT or wage taxes will not be imposed.
- A temporary reduction in the default payment interest on all taxes, from 4% to 0.01%.
- A reduction in the interest rate normally charged upon tax assessments issued after the taxable period has expired – from 8% (for corporate income tax) and 4% (for other taxes) to 0.01%, with effect from 1 June 2020 for taxes other than personal income tax, for which the effective date is 1 July 2020.
- A suggestion to lower the provisional assessment for corporate income tax or personal income tax. This can be done through filing an electronic request for amendment on the basis of lower expected profits due to COVID-19.
Osborne Clarke commentary
The measures announced are helpful for business in preserving their liquidity position in challenging times. This approach is in line with measures taken by other governments such as the UK, France, Germany and the US.
The Osborne Clarke team is available to assist with any requests for deferral of tax payment.