Do you need deferral of tax payments due to the coronavirus crisis? You do not want to miss this!
To help companies and entrepreneurs cope with liquidity problems due to the coronavirus crisis, the Dutch tax authorities now offer the possibility to request special deferral for payments of income tax, corporate income tax, VAT and payroll tax.
As soon as the tax authorities receive the request for deferral of tax payments, the tax collection process is put on hold. But remember that the tax return must be filed in good time.
The request for deferral of tax payments must be submitted in consultation with a tax adviser
The Dutch tax authorities will grant deferral of tax payments provided that the request is submitted in consultation with a third party expert like a tax adviser or accountant, and in writing explaining that the company is affected by the coronavirus crisis. The letter must show that there are acute payment problems (not payment problems to be expected), that the payment problems are of a temporary nature and as a result of the coronavirus, and that the company is commercially viable.
The Dutch tax authorities perform individual assessments for deferrals
As soon as the tax authorities receive the request for deferral of tax payments, the tax collection process is put on hold. The deferral assessment process is not automated, so it can take time before your request is assessed. It is therefore important to submit the request for deferral as soon as possible.
What are the rules on late payment interest?
The usual deferral requirements will in principle continue to apply. If there is still tax payable after the final due date of the tax assessment, the tax authorities will charge interest on late payment. However, we believe that there is a good chance that is it is able to make agreements with the tax authorities on the late payment interest.
Request to reduce the provisional tax assessment for corporate income tax and income tax
If the coronavirus crisis has a negative impact on your company's profit forecast, a request to reduce the provisional tax assessment can be filed already, so that you have to pay less tax with immediate effect.
We can help you with filing such a request.
No default penalties for late payments
To help entrepreneurs, the tax authorities will reverse or not impose default penalties over the coming period. If a default penalty has been imposed, and you are not sure if that is appropriate, we recommend that you contact us to assess this, and we will file an objection if necessary.
If you have any questions please do not hesitate to contact one of your regular contacts at AKD or send an email to email@example.com.