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.
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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.