22nd May 2020
Ruitenburg adviseurs & accountants
Due to the COVID-19 outbreak several measures are introduced by the Dutch government. MSI's Dutch accounting member Ruitenburg summarizes the main measures for companies. The coronavirus outbreak can have financial consequences for entrepreneurs or organizations; a number of fiscal measures have been announced to mitigate the negative economic consequences of the pandemic.
With the Temporary Emergency Measure to secure Employment (NOW), entrepreneurs can be reimbursed up to 90% of their wage costs if they expect to lose at least 20% turnover over 3 months due to the corona crisis. The NOW scheme is set up to keep people employed. Employers are therefore not allowed to fire any employees for economic business reasons while applying for the NOW compensation.
This is an extension of NOW 1.0 with some adjustments for the period June, July and August 2020. Important change is that dismissal of employees will be made possible again. Main adjustments:
Planned implementation date: June 6th, 2020
Affected sectors are entitled to a one-time allowance of €4,000. The sector needs to be registered as an affected sector by the COVID-19 crisis. The following conditions needs to be met:
Temporary scheme for independent entrepreneurs (Tozo)
This measure is for independent entrepreneurs, including self-employed persons. It provides an additional living allowance if the income falls below the social minimum due to the corona crisis. €1,050 for an individual and € 1,500 for a family.
The municipality of the entrepreneur provides a loan for working capital to absorb liquidity problems as a result of the corona crisis on request of the entrepreneur.
Deferral tax payments
For tax assessments one can ask the tax authorities for deferral. This deferral will be granted for 3 months automatically. This request for special deferral of payment applies for: personal income tax, social securities, corporate income tax, VAT, wage tax, gambling tax, insurance tax, environmental taxes, consumption tax of non-alcoholic drinks and similar taxes in the Caribbean Netherlands. This allows deferred payment to be obtained for a longer period than usual, or without the need to provide security for the full amount. For all aforementioned taxes, requests made before June 19, 2020 are subject to the temporary emergency regulation.
After aforementioned period, you can receive another special deferment of payment for again a period of 3 months. This request will not be granted automatically but will have to be motivated.
Both tax interest and recovery interest will be temporarily reduced to 0.01%. (Used to be 8% corporate income tax and 4% for all other taxes)
Revision preliminary assessment 2020
If turnover ceases or decreases you can request a new preliminary assessment for 2020. The tax authorities will determine the new assessment within a few weeks. If the assessment is reduced, you will have to pay less in the future installments, or you will (partially) receive the tax already paid back.
No default penalties for not paying (on time)
The Tax and Customs Administration will not impose default penalties for
failure to pay the assessment on time the coming period.
Easing of national legal fictions/anti-abuse provisions for entrepreneurs
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