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Netherlands: Additional tax relief measures to address coronavirus (COVID-19) crisis

Netherlands: Additional tax relief, coronavirus

The Cabinet on 17 March 2020 announced additional measures to support Dutch employees, self-employed individuals, and the Dutch business community facing challenges from the coronavirus.

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These measures supplement or extend the measures of 12 March 2020. Read TaxNewsFlash

The new measures reflect a deferral for paying taxes including energy tax and the levying of sustainable energy storage (ODE) for companies in the second, third and fourth tax bracket.

Beginning 23 March 2020, the Cabinet will temporarily reduce the “collection interest” for all tax debts from 4% to 0.01%. Recovery interest is normally due if an assessment is not paid on time (from the time that the payment term has expired). The Cabinet also has reduced the tax rate for all taxes to which it applies, from 8% (corporate tax) and 4% (other taxes) to 0.01%. Tax interest is payable if an assessment cannot be determined in time, for example because the tax return is not submitted on time or for the correct amount. The decrease to 0.01% is also temporary in nature and will take effect from 1 June 2020, with the exception of income tax: an effective date of 1 July 2020 applies.

The tax administration will reverse assessments of a default penalty for a failure to pay tax (on time).

Concerning a reduction of the provisional assessment, requests for reduction in connection with the coronavirus will be granted by the tax authorities. If an entrepreneur has already (partially) paid the provisional assessment and the amount of the new provisional assessment is lower, the difference will be paid to the entrepreneur.

Read a March 2020 report (Dutch) and (English) prepared by the KPMG member firm in the Netherlands

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