Netherlands: Extended and new tax relief measures in “emergency package 2.0” (COVID-19)
Netherlands: Extended and new tax relief measures
The government on 20 May 2020 announced that certain tax relief measures that were part of an initial emergency package (“emergency package 1.0”) offered in response to the coronavirus (COVID-19) pandemic would be extended and supplemented with new measures (“emergency package 2.0”).
With regard to the extended measures, various conditions would be amended and new elements (for example, resources for the training and retraining of staff) would be added.
The extended and new measures in “emergency package 2.0” include the following:
- The “temporary emergency bridging measure to retain jobs” (Tijdelijke noodmaatregel overbrugging voor behoud van werkgelegenheid—NOW) would be extended by another three months, and would be expected to apply for the period 1 June through 31 August 2020.
- A new program, the “overhead compensation SMEs” (Tegemoetkoming Vaste Lasten mkb—TVL) would (depending on the size of the company, the amount of overhead and the degree of lost turnover (which must be at least 30%)) provide compensation for overhead up to a maximum of €20,000 for three months.
- A “temporary emergency bridging measure for self-employed persons” (Tijdelijke overbruggingsregeling zelfstandig ondernemers—TOZO) would be extended for a one-off period of three months through 31 August 2020, with amended conditions.
- The “corona bridging loan” program (Corona-Overbruggingslening—COL) for start-ups and innovative companies would be extended.
- A government-guaranteed program for loans to small and medium-sized enterprises (Borgstelling MKB-kredieten—BMKB) and the business loan guarantee scheme (Garantie Ondernemingsfinanciering—GO) would continue.
- Approval already provided for the deferral of payments allowed businesses (upon request) if they were encountering liquidity problems as a result of the corona crisis would be extended, with a distinction made between deferral of payment for a period of three months and deferral of payment for a period longer than three months.
- The rate of interest on tax due and late-payment interest would be reduced to 0.01% for a period until 1 October 2020.
- Other tax measures would be extended generally until 1 September 2020—including, for example, the value added tax (VAT) exemption for medical relief supplies, the VAT exemption for the outsourcing of healthcare workers, the easing of the hours criterion for businesses subject to individual income tax, and the period during which a temporary deferral of mortgage payments while retaining the right to claim the mortgage interest deduction can be applied for and granted.
Read a May 2020 report prepared by the KPMG member firm in the Netherlands
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