Deferment of financial payments

Deferral of tax payments due to the coronavirus pandemic extended again

Deferral of tax payments due to the coronavirus pandemic extended again

3 February, 2021

In response to the extension of the current lockdown, the government’s letter to the House of Representatives on 21 January 2021 announced another extension of a number of tax measures provided for in its economic support and recovery package. One of these measures is the special deferral of payment due to the coronavirus pandemic. Read on for more information.

In a previous (dutch) news report, we informed you that the possibility to apply for a special deferral of payment due to the coronavirus pandemic would be coming to an end on 1 April 2021. However, the government has since decided to extend this arrangement (again) until July 2021, given the extension of the current coronavirus measures.

This means that businesses and companies that have not utilised the arrangement to date will now be able to apply for a three-month special deferral of payment due to the coronavirus pandemic until 1 July 2021. Businesses and companies that have already utilised the arrangement will be able to apply for an extension of their deferral until 1 July 2021.

To summarise, the extension of the special deferral of payment measure means that:

  • the Dutch Tax and Customs Administration will grant a three-month deferral to businesses and companies that apply for a special deferral of payment for the first time before 1 April 2021, provided they meet certain conditions;
  • businesses and companies that apply for a special deferral of payment for the first time after 1 April 2021 will be granted a deferral until 1 July 2021;
  • businesses and companies that are already utilising the arrangement will be able to apply for an extension up to 1 July 2021 at the latest;
  • businesses and companies that were granted an extension previously will automatically have their extension extended until 1 July 2021.

 

Payment plan

Businesses and companies will not be required to pay the tax liability accrued during the deferral in one lump sum when the deferral ends. Instead, they will be offered a 36-month payment arrangement, starting on 1 October 2021. The Dutch Tax and Customs Administration will contact businesses and companies with more information about the tax liability accrued and the payment arrangement later this year.

Questions?

If you have any questions, please do not hesitate to contact your regular contact person at Joanknecht or one of our specialists.



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