Dutch tax deferral extended to 1 October 2021

The Dutch government offers businesses a tax deferral to help them deal with the fallout of the COVID-19 pandemic. The scheme has been extended by another three months; you can apply for a tax deferral until 1 October 2021. We would be happy to provide more information and tell you how to apply.

Extended tax deferral

The scheme was originally supposed to end on 1 April 2021, but the deadline has now been stretched to 1 October 2021. Businesses that were granted a tax deferral earlier can apply for an extension. The scheme applies to all types of taxes.

If you are experiencing financial problems and you have not applied for a tax deferral earlier, you have until 1 Ocotber 2021 to do so. The tax deferral will be over on 1 October 2021; the Dutch Tax and Customs Administration expects you to start paying your tax debt from that date onwards.

Reminder: please remember to file your tax returns as usual; the filling deadlines have not changed.

How to apply?

If you tax debt is lower than € 20,000, you can submit a written request to the Dutch Tax and Customs Administration (page in Dutch). Your request for a tax deferral needs to be accompanied by a third-party statement if your tax debt is higher than € 20,000. An accon■avm’s adviser can provide you with a third-party statement attesting to the fact that your financial problems are effectively attributable to the pandemic.

Conditions

If you are granted a tax deferral of more than three months, you are expected to improve your cash position by meeting two additional conditions:

• You cannot pay bonuses or distribute dividends.
• You cannot repurchase treasury shares.

Repaying your tax debt

If you have been granted a tax deferral, you will be expected to start repaying your debt on 1 October 2022 at the latest. You will have three years to make the full repayment, i.e. until 1 October 2024. The Dutch Tax and Customs Administration will send you a letter. In this letter, it will propose a repayment schedule.

The rate of late payment interest will be 0.01% until the end of 2021. No tax deferrals will be granted for new payment obligations that arose after 1 January 2021.

More information?

Please contact your accon■avm International adviser if you need your request for a tax deferral to be accompanied by a third-party statement or if you need assistance in applying for tax deferral. Alternatively, you can send an email to international@acconavm.nl. One of our accountants would be happy to prepare a third-party statement for you as soon as possible, so that you can meet the application deadline.