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Extension for deferment of tax payments

9 juni 2020 | Door:  Matthijs van Dorssen

One of the first measures from the Dutch government to help companies in the corona crisis was the deferment of tax payments. The possibility for the deferment has now been extended.

Application

You can apply for deferment of tax payments until the end of September. When you apply, you will automatically be granted a deferment period of three months. New tax assessments within this period of three months will be added to this deferment period of three months.

Penalties

Because deferment is only possible for a tax assessment, this means you will have to wait until you will get an assessment for the VAT and payroll taxes. Normally you pay these taxes right after you have done your tax return without an assessment. When you file your return, but do not pay the taxes you will receive an assessment for the taxes to be paid. Normally there will be a penalty included for not paying in time. When you apply for the deferment and the deferment is granted, you will not have to pay this penalty.

Tax interest

The interest rate for tax interest and late payment interest were already reduced from 8% and 4% to 0.01% . The period for which the interest rates have been reduced, has also been extended to October 1st for all types of tax.

Longer deferment period

If you cannot pay your taxes after the deferment period of three months, you can apply for a longer period. The online form for this application will be available from the second half of June. Depending on the total amount of taxes for which you want a longer deferment period, you will need to extra provide information with your application. If the total amount of taxes exceeds the amount of € 20,000, you will need to provide a liquidity budget and a statement of a third party expert with your application. If the total amount of taxes for which you want a longer deferment period is lower than € 20,000 you will need to provide proof of the drop of your turnover or order intake. The longer deferment period will last until the deferment is withdrawn. To will not be before October 1st. The government will decide later on whether the period will be extended after October 1st. When the deferment period will be withdrawn, the Tax Authorities will offer you a repayment arrangement. Specific conditions for such arrangements are not clear yet.

Conditions

When you apply for a longer deferment period there are some extra conditions you will need to meet. For the company that is applying, It is not allowed to pay out dividends, bonuses or buy back own shares.

Ask Alfa

If you have any questions or need assistance with your application, please contact your Alfa advisor. We can also file your application for the deferment of tax payments or an extension of the deferment period. We are always nearby!