Deferral of tax payments
Deferral of tax payments for entrepreneurs & reduction of tax interest
Last updated: May 25th, 2020
Entrepreneurs (including legal entities) may receive special deferral of payments for income tax, corporate tax, sales tax (BTW) and payroll tax. Besides it is possible to apply for payment extension for several other taxes and duties, such as: excise duty, landlord levy, environmental taxes, insurance tax and betting and lottery tax. The conditions for applying for deferral of payment have been relaxed due to the corona crisis. This policy is effective until at least 1 September 2020.
Any entrepreneur who has run into financial problems as a result of the corona crisis is eligible for deferral of his tax debt. Postponement can be requested after a tax return has been filed and a (supplementary) assessment has been received. An entrepreneur can submit the request for deferment of payment by filling out an online form or sending a letter to:
PO Box 100
6400 AC Heerlen
For the online application the entrepreneur will need a DigiD. If he does not have a DigiD it is possible to have an authorised person login for him, using their DigiD. To complete the application the entrepreneur will need to fill in his RSIN number or his citizen service number (BSN).
The entrepreneur can apply for a payment extension of 3 months for all his income tax, corporate tax, payroll tax, and turnover tax (VAT) assessments at once. The other taxes and duties will need to be reported individually.
From the moment the entrepreneur reports, the Dutch Tax Administration will put on hold any measures to collect payment immediately. Individual assessment of the request will take place later. This means that the entrepreneur actually receives a deferred payment immediately.
The Government wants to keep the administrative burden of applying for deferred payment as limited as possible. For the first 3 months, no statement from a third expert (for example an accountant or sector organization) is required.
Deferrals longer than three months do require additional information to assess whether the financial problems are mainly caused by the corona crisis. The entrepreneur can use the first three months to provide this information.
If you do not pay an assessment on time, you normally have to pay 4% recovery interest from the moment the payment term has expired. As of March 23, 2020, the tax authorities will temporarily reduce the recovery interest from 4% to 0.01%. This applies not only to a tax debt for which special deferral of payment is requested, but to all tax debts. The recovery interest is reduced until at least 1 October 2020.
The tax authorities charge tax interest if they were not able to determine a tax assessment on time, for example because a tax return was filed too late or not for the correct amount. The tax interest is 8% for corporate tax and 4% for other taxes. The tax authorities will temporarily reduce the tax interest to 0.01%. This will apply to all taxes subject to tax interest. The temporary reduction of the tax interest will take effect from 1 June 2020, except for personal income tax. For personal income tax, the reduction will take effect from 1 July 2020. The reduction of the tax interests is at least until 1 October 2020.
Source: Online application for deferral of payment (Dutch only) | Publication date: March 29th, 2020
Entrepreneurs who are in acute difficulties due to the corona crisis may be granted a deferral for the payment of pension contributions. The Stichting van de Arbeid and the umbrella organizations of pension providers, the Pension Federation and the Dutch Association of Insurers have agreed this.
The TOGS (Tegemoetkoming Ondernemers Getroffen Sectoren), is one of the emergency measures by the Dutch government for entrepreneurs, previously known as the Emergency Counter (Noodloket). If you do business in one of these sectors, you can receive a one-off payment of € 4,000.
Do you expect a lower profit due to the corona outbreak? And do you now pay a provisional assessment for income tax or corporate tax? Then you can change your provisional assessment so that you immediately pay less tax. Reduce your estimated income for this.
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