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Netherlands: Relief and recovery package, amended and expanded into 2021 (COVID-19)

Netherlands: Relief and recovery package

A December 2020 letter from the government to the Lower House of Parliament announces that an existing relief and recovery package for businesses and workers would be amended, and certain elements would expanded in response to the coronavirus (COVID-19) pandemic.


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The government decided not to phase out the temporary emergency bridging measure to retain jobs (Tijdelijke noodmaatregel overbrugging voor behoud van werkgelegenheid—NOW) or the overhead compensation for small and medium size enterprises (Tegemoetkoming Vaste Lasten mkb—TVL) in the first quarter of 2021.

Among the tax-related proposed measures are the following:

  • Extension of the period during which businesses can apply for a deferral of payment of taxes (or an extension thereof) until 1 April 2021
  • No changes to the temporary emergency bridging measure for self-employed persons (Tijdelijke overbruggingsregeling zelfstandig ondernemers—TOZO 3)
  • Extension of the following measures until 1 April 2021:
    • Deferral of administrative obligations with regard to payroll tax and social security contributions
    • Agreement with Germany and Belgium concerning the taxation of “frontier workers”
    • Exemption for certain German net benefits
    • Zero (0%) value added tax (VAT) rate for face masks
    • Retention of the right of homeowners to claim the mortgage interest deduction if they obtain a mortgage repayment “break” from their mortgage lender
  • VAT rate of 0% on COVID-19 vaccines and test kits to apply until 1 April 2021

Read a December 2020 report prepared by the KPMG member firm in the Netherlands

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