Netherlands Adopts COVID-19 Economic Relief Package

23/03/2020

On March 17, 2020, the Dutch Ministry of Finance announced that the Government has adopted a package of measures intended to protect the economy from the coronavirus epidemic, including several tax changes.

Under the measures, companies impacted by the coronavirus will more easily be able to request deferment of tax payments. Taxpayers will be able to request deferment of income tax, corporation tax, payroll-related taxes, and value-added tax.

Taxpayers that have been granted the right defer tax do not have to pay any associated fines, and companies will be given more time to substantiate their claims.

The Government also intends to reduce the interest rate on overdue taxes from four to almost zero percent as soon as possible.

Furthermore, in consultation with the Association of Municipalities, the Government will discuss the possibility of waiving provisional local tax assessments for companies and withdrawing previously imposed tax assessments. In particular, this proposal will apply to tourism-related taxes.

Separately, the Government has announced that any company that expects to lose at least 20 percent of its revenue may apply to the Employee Insurance Agency for an allowance that will enable it to pay its employees' wages for three months (up to a maximum of 90 per cent of the company's wage bill, depending on the loss of turnover). The Employee Insurance Agency will provide the company with an advance amounting to 80 percent of the requested allowance. The Government said this will allow companies to keep paying their employees' salaries.

Source: Pride Partners International