A new policy statement (dated 22 April 2020 and effective 25 April 2020) from the Deputy Minister of Finance supplements prior policy statement-related tax approvals and relief measures in response to the coronavirus (COVID-19) pandemic.
The measures in the most recently issued policy statement concern the deferral of tax payments, payment-default penalties, and notifications of an inability to pay. The new policy statement relief measures are effective retroactively as of 12 March 2020.
Deferral of payment for tax debts
The new policy statement provides that a special deferral of tax payment can be granted to businesses that are temporarily facing liquidity problems caused by exceptional circumstances beyond their control. As a result of the COVID-19 crisis, a number of temporary approvals have been provided for in this respect.
Payment default penalties
Businesses that are granted a special deferral of payment under the policy statement are not to be assessed with a default penalty (for the late payment of tax) during the period beginning 12 March 2020 through to the date when the granted tax payment deferral ends.
The policy statement addresses the effect of the relief on various tax collection devices (including seizure of the taxpayer’s property) and concerning corporate directors’ liability when the legal entity is granted a deferral for its inability to pay.
Read an April 2020 report prepared by the KPMG member firm in the Netherlands
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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.