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Expansion of tax payment deferment and repayment arrangements

The Dutch government recently announced that the rules regarding the additional deferral of payments and the initially proposed repayment arrangement will be expanded. Have you, as an entrepreneur, made use of the deferment of payments? Below you can find what the possibilities as well as the consequences are for your company.

Extension of deferment of payment

Contrary to what the Dutch government announced earlier, the already granted postponement of payment can be extended until 31 December, 2020. Initially this was 1 October. The postponement that has been granted will then apply until 31 December, 2020 at the latest. This means that all payment obligations arising after this date must be paid within the regular period. In practice this means that entrepreneurs will again have to pay their tax on time for the periods of the fourth quarter of 2020, of December 2020 and the 13th 4-week period 2020. The payment obligation for these periods will arise in 2021.

Expansion of repayment arrangements

Initially, the Dutch tax authorities proposed a payment arrangement whereby the deferred tax would have to be repaid starting from 1 January 2021. The total tax debt was allowed to be repaid in 24 equal monthly installments.

The cabinet has now announced that the total tax debt will only have to be repaid from 1 July 2021. Every entrepreneur also now has 36 months to repay the accrued tax debt.

Below you will find some important dates regarding the extension of the payment deferral and the repayment arrangement:

  • 31 December 2020: Deadline for the application of extension of deferment of payment.
  • Spring 2021: The entrepreneur will receive a letter from the Tax Authorities with a proposal for a payment arrangement.
  • 1 July 2021: The Tax and Customs Administration expects the entrepreneur to start paying their debt.

Do you have any questions about the deferment of payment? Crowe Peak consultants are here to help you. Feel free to contact us today.

Crowe Peak
Olympisch Stadion 24-28 1076 DE Amsterdam, The Netherlands
+3188 2055 000 contact@crowe-peak.nl