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The Dutch Tax and Customs Administration has implemented a number of measures to help businesses and employers with payment difficulties due to the corona crisis,and to avoid extra costs. This page lists measures for businesses in general and employers in particular, and gives information on the Customs measures for entrepreneurs during the corona crisis.
Tax measures extended
On 20 May, the government announced an extension of these tax measures:
- businesses will be able to apply for payment extensions for taxes until 1 September.
- The interest rate on tax and tax collection will remain close to zero until1 September.
- The Tax Administration will not impose fines for late payments until 1 October.
- The relaxation of the hours critorion will continue.
Payment extension for several taxes
You can apply for a payment extension of 3 months for all your income tax, corporate tax, payroll tax, and turnover tax (VAT) assessements at once, by filling out an online form (in Dutch). You need a DigiD for this, but if you don't have one, you can ask an employee or a financial advisor to login for you, using their DigiD. You will need to fill out your RSIN number or your citizen service number (BSN), so keep these ready. The Dutch Tax Administration will put on hold any measures in place to collect payment immediately upon reception of your request.. You can also change your provisional assessment, to lower your financial obligations.
No VAT on face masks
From 25 May onwards, you will not have to pay VAT on the supply of face masks. If you sell face masks, you may continue to deduct pre-tax. The government takes this measure to make face masks more cheaply available, as use of face masks becomes mandatory in public transport on 1 June. The details of this measure are still under deliberation.
Lower tax interest rates
The tax collection interest rate and the tax interest rate itself are lowered from 4% to nearly 0%.
No tax on TOGS
No tax will be levied on the Reimbursement for businesses affected by the corona measures (TOGS) of €4,000.
VAT rules eased to help the care sector
Businesses that second care personnel or donate medical equipment or devices will not have to deal with the usual VAT rules concerning these actions. This will ease the administrative and financial burden in the care sector.
Online sports lessons, that replace lessons in a sports facility or school, temporarily fall under the low VAT tariff of 9%.
Hours criterion relaxed
Some tax deduction schemes such as private business ownership allowance, working partner's abatement and retirement reserve require a minimum number of 1,225 hours spent working in your company per year, or approximately 24 hours per week. The corona crisis may make it impossible for businesses to meet this criterion. The Tax Administration will relax the rules as much as possible.
Corona reserve for corporate tax 2020
The Tax Administration will allow businesses to deduct losses from their profits in the 2019 corporate tax return. This way, businesses can build a corona reserve. This may help to keep your cash flow at an acceptable level.
Customary salary for DGA’s lowered
If you are a director or major shareholder (DGA) in your company, you have to meet a so-called customary salary (‘gebruikelijk loon’), over which your company levies payroll taxes. For 2020, it will be possible to lower your customary salary proportionate to your company’s turnover loss. This means you will have to levy less payroll tax.
More time for some changes in legal structure, mergers or divisions
In some cases, you can take more time to change your company’s legal structure or to arrange a company merger or division.
See the Dutch Tax Administration website (in Dutch).
Apply for a reduction of your provisionary assessment
Do you expect lower profits due to the coronavirus, and are you currently paying a provisionary assessment for income tax or corporate income tax? You can change your provisionary assessment. If you want to change your income tax provisionary assessment, go to the online portal for individuals: MijnBelastingdienst (in Dutch); to change a corporate tax provisionary assessment go to the business portal: MijnBelastingdienst Zakelijk (in Dutch).
No tax on reimbursement for face masks
As of 1 June, face masks will be mandatory in public transport. If you reimburse your employees for the costs of these face masks, you may do so free of tax.
Measures to ensure low unemployment benefit premiums
The Tax Administration has extended the period during which employers can record permanent contracts, so that they avoid having to pay high unemployment benefit premiums under the Balance Employment-Market Act (Wab). Also, employers will not have to pay high unemployment benefit premiums for permanent staff who have worked more than 30% overtime in 2020.
Payroll taxes and travel allowance rules eased
These rules have been temporarily eased:
- Payroll taxes for employees who live or work across the Belgian or German border;
- Travel allowances for employees who have to work from home;
- Payroll tax administration.
Extension of discretionary scope work-related cost scheme
The work-related cost scheme enables you to use part of the fiscal wages for tax-free allowances, benefits in kind and provisions for your employees. The percentage you can use (the discretionary scope or ‘vrije ruimte’) is increased from 1.7% to 3% for wages of up to €400,000. For fiscal wages of over €400,000 the scope remains 1.2%. You can use the extension to award your employees a courtesy gift, or home working equipment.
See the Dutch Tax Administration website (in Dutch).
Customs and corona
Check the Corona - consequences for your customs affairs page regularly for updates.