Information is continuing to emerge on COVID-19 and the resulting legislative changes being instituted in the Netherlands. We have compiled a list of important updates for employers in the Netherlands to be aware of. Our teams are closely monitoring the situation and will continue to provide the latest updates to keep you informed.
COVID-19 Updates - Netherlands
Last Updated – March 27, 2020
Value Added Tax (VAT)
- Payments of value added tax (“VAT”), income tax, individual income tax, wages and corporation tax can be deferred by submitting a written statement reporting the impact on business
- Upon receipt of the request, tax authorities, are required to stop the collection, with an assessment to take place later
- VAT can be reclaimed from the government if the taxpayer’s/organizations Clients are not able to pay their debts due to the current crisis under certain conditions.
- No default penalty will be imposed for non-payment of tax or late payment of tax.
- The government has announced that where it appears that the taxable profit is lower than estimated profit then a reduction of the provisional assessment during the financial year can be granted for improving cash-flow
- Reduced working hour’s scheme (regelingwerktijdverkorting) is introduced for employees and organizations if they meet relevant conditions for reduced working hours.
- If an organization suffers calamity, or a temporary loss of working hours for at least 2 weeks up to 24 weeks. The eligible personnel will be eligible for the unemployment benefit (WW-uitkering)
- The government has guaranteed scheme for loans to small and medium-sized enterprises (VerruimingBorgstelling MKB-kredieten; BMKB). The businesses themselves can agree with their creditors for suspension of repayments and interest payments etc.
- Losses for the financial year 2020 (whether or not due to COVID-19 impact) can be set off with the tax return filled end of the financial year with request to provisionally set off the loss against the profit for 2019 also known as the “provisional carry-back”. The tax paid for year 2019 will be accordingly partly or fully reduced or refunded.