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Netherlands: Relief measures extended, tax obligations deferred to 1 July 2021 (COVID-19)

Netherlands: Relief measures extended

A January 2021 letter from the government to the Lower House of Parliament announces that an existing relief and recovery package for businesses and workers would again be amended, and certain elements would be expanded or extended in response to the coronavirus (COVID-19) pandemic.


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The government decided to expand the temporary emergency bridging measure to retain jobs (Tijdelijke noodmaatregel overbrugging voor behoud van werkgelegenheid—NOW) and the overhead compensation for small and medium size enterprises (Tegemoetkoming Vaste Lasten mkb—TVL).

Among 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 July 2021 (previously extended to 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 July 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
    • Zero (0%) VAT rate on the outsourcing of healthcare workers
    • Zero (0%) VAT rate on COVID-19 vaccines and test kits
    • Retention of the right of homeowners to claim the mortgage interest deduction if they obtain a mortgage repayment “break” from their mortgage lender
  • Temporary reduced VAT rate of 9% on sport lessons offered by gyms online will continue until mandatory closure of gyms is lifted

Read a January 2021 report prepared by the KPMG member firm in the Netherlands

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