On 12 and 17 March 2020, the Dutch government announced a series of temporary tax measures to provide relief to Dutch taxpayers suffering from the detrimental effects of the COVID-19 crisis. In general, the measures are immediately effective for a period of three months, with the possibility of an extension provided certain conditions are met.
Tax payment extension
- Taxpayers carrying on a business are eligible to request an extraordinary payment extension for certain taxes, i.e. personal income tax, corporate tax, value added tax (VAT) and payroll taxes, for a period of three months.
- Upon receipt of the taxpayer's request for a payment extension, the tax authorities will immediately halt collection measures for the taxes concerned.
- Contrary to the Dutch government's announcement of 17 March 2020, the State Secretary for Finance stated in a letter of 19 March 2020 that taxpayers requesting the extraordinary three-month payment extension would not be required to provide a third-party statement substantiating their need for the extension.
- Taxpayers can apply for an additional extension on top of the initial three-month period, but only if they are able to adequately substantiate their request (e.g. with an auditor's opinion).
- For the time being, the Dutch tax authorities will not impose any penalties for the late payment of taxes, and any penalties already established need no longer be paid.
- Applications for the extraordinary tax payment extension may be sent to the address found here.
Revision of preliminary assessments
- Preliminary personal income tax and corporate tax assessments for 2020 may, at the taxpayer's request, be reduced if lower profits are expected due to the COVID-19 crisis.
- For personal income tax assessments, the application must be filed via the online platform Mijn Belastingdienst.
- Corporate taxpayers may file an application (i) via the online platform Mijn Belastingdienst Zakelijk, (ii) with the software used to file their tax returns or (iii) using the special form found here, if options (i) and (ii) are not available.
Lowering of interest rates
- 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%.
- The temporarily lower interest rate will be effective as of 1 June 2020 for all taxes except personal income tax, for which it will be effective one month later.
- In addition, the recovery interest rate (invorderingsrente) will be temporarily reduced from 4% to 0.01% for all taxes as of 23 March 2020.
- The Dutch government intends to temporarily defer the energy tax and renewable energy surcharge for certain types of taxpayers.
- The government is also considering the withdrawal of taxes imposed by municipalities, such as the tourist tax.
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