Netherlands: Tax measures proposed to provide business tax relief (COVID-19)

Netherlands: Tax measures proposed

The Deputy Minister of Finance on 24 April 2020 announced six new tax measures that are intended to provide relief to businesses, including the self-employed, in response to the coronavirus (COVID-19) pandemic.


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Details of the measures are still being finalized, but it is anticipated that those provisions requiring legislative action could be included in the 2021 Tax Plan as a separate bill. For measures that do not require legislation, it is anticipated that these could be the subject of a policy statement as soon as possible.

The six announced measures are:

  • A reduction of the “normative salary” standard in the event of a decline in turnover
  • For self-employed persons, easing the “hours criterion” that requires entrepreneurs to spend at least 1,225 hours per year on their business to qualify for a deduction
  • The work-related costs rules under which employers can provide certain untaxed reimbursements for employees
  • “Corona tax reserve” for corporate income tax purposes—that is, the provision allowing an offset of a loss against profit from the preceding year for the one-year carryback
  • Postponing the effective date of measures concerning excessive lending by a taxpayer’s own company, to allow certain debts that directors-major shareholders owe to their own companies
  • Mortgage payment holiday for taxpayers who notify (or notified) their lenders between March 12 and June 30, 2020, and agree to a mortgage payment holiday of a maximum of six months, with the missed mortgage payments and deferred interest to be repaid, with the deferred interest to be deductible according to ordinary tax rules

Read an April 2020 report prepared by the KPMG member firm in the Netherlands

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