Netherlands Announces COVID Extensions
In the Netherlands, COVID support on offer is tailored to businesses on a day-to-day basis. Under a scheme put in place in 2020, businesses are able to defer payment of numerous taxes (income tax, the health insurance levy, corporate tax, payroll taxes, and VAT). Initially, businesses had been granted an automatic exchange of up to three months and thereafter they could request an extension by submitting a request by October 1, 2020. This deadline to submit a request was subsequently extended until the end of 2020.
Under the first iteration of the scheme, tax debts were required to paid starting January 1, 2021, over a 24-month period. In September 2020 the Government announced that businesses would be allowed 36 months to pay these amounts and would be required to do so only from July 1, 2021. It said interest on tax debts would be charged at 0.1 percent until December 31, 2021.
However, the Dutch Government has now announced that businesses may continue to submit a request for deferment until July 1, 2021, and these businesses need not pay back their tax debts until October 1, 2021, rather than from July 1, 2021. The Government has also said the Tax and Customs Administration is to begin working with businesses with tax debts that need to restructure these debts.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look