PrimeGlobal continues to monitor and assess new developments pertaining to the Novel Coronavirus. Keeping our members up to date on the latest information and approach to help reduce risk is a priority. You can find more information on PrimeGlobal's dedicated page HERE> PrimeGlobal member firm Visser & Visser provides a coronavirus update in the Netherlands.
Update to coronavirus measures
On March 18, the Government announced an emergency package. Wopke Hoekstra (Finance Minister), Erik Wiebes (Minister of Economic Affairs and Climate Policy) and Wouter Koolmees (Minister of Social Affairs and Employment) freed up tens of billions of euros to shield companies and employees in the Netherlands against the coronavirus crisis. The main changes are set out below:
- Introduction of a temporary scheme to help meet wage costs
The short-time working (Wtv) scheme has been scrapped. The Ministry of Social Affairs and Employment (SZW) has decided to withdraw the short-time working scheme and to stop granting exemptions. This was announced by the Government yesterday evening due to the decision to implement exceptional economic measures in an effort to protect jobs and incomes and to cushion the impact on businesses. The support package includes a temporary scheme to help cover wage costs, known as the Temporary Emergency Bridging Measure for Sustained Employment (Noodfonds Overbrugging Werkgelegenheid, NOW). Read more about the new scheme in this blog.
- Relaxation of tax payments and lowering of fines
You can request a deferment of payment because of liquidity problems due to the coronavirus outbreak. Yesterday evening, the Government relaxed the rules for applications. The deferment covers income tax, corporation tax, VAT and wage tax. For wage tax and VAT, this means that the return is submitted on time but not paid. Once the (additional) assessment has been imposed, a deferment of payment can be requested. Any default penalty will be reduced. The application must include an explanation of how the coronavirus outbreak has caused payment problems. Visser & Visser can take care of this application for you. The Tax and Customs Administration will grant deferment as soon as the application has been received. Within 4 weeks of the application, a third-party expert must issue a statement. The conditions for this statement have yet to be announced. Your tax adviser at Visser & Visser can issue the statement. The Tax and Customs Administration is temporarily lowering the interest on tax and overdue tax. Interest on overdue tax due to late payment will be 0.01% from 23 March 2020. Interest on tax due to late submission of returns will be 0.01% from 1 June 2020. For income tax, the commencement date will be 1 July 2020. If your profit for 2020 is expected to be lower, the provisional assessment for income tax or corporation tax for that year can be reduced. To zero if necessary.
In addition to the changes above, the Government has implemented another six measures aimed at cushioning the impact on the self-employed, SME owners and large companies:
- Extra support for the self-employed
- Expansion of the Business Loan Guarantee Scheme (Garantie Ondernemingsfinanciering, GO)
- Interest rate reduction on Qredits microcredit for small business owners
- Temporary guarantee for agricultural and horticultural companies
- Consultation on tourist tax (central government/municipalities) and cultural sector
- Compensation scheme for sectors affected
The details of many of these measures are still being worked out. For more information, please refer to the relevant web page of the Government of the Netherlands (in Dutch).
Visser & Visser Accountants -Tax Consultants
Visser & Visser Accountants - Tax Consultants wants to be a sparring partner for their clients! Visser & Visser is a young, medium-sized company twelve offices (including the main cities Amsterdam and Rotterdam) and around 300 employees. We would like to stand close to our clients, both literally and figuratively. At our offices, there is an accessible atmosphere where professionalism and collegiality go hand in hand. Our people stand behind and next to the entrepreneur; they adopt a positive critical attitude and show expertise in every advice. We are people of enterprise, just like the entrepreneur, to gain maximum efficiency of our cooperation. Doing business internationally is no longer reserved for large-scale enterprise. Many entrepreneurs of small and medium enterprises will sooner or later be confronted with problems of international nature. An advisor who knows what is going on and who is able to guide you in the do’s and don’ts is essential. Furthermore, we act actively for international companies with establishments or activities in the Netherlands. Due to our proficiency in English and our knowledge of facts, we may count an increasing amount of international top-class companies among our list of clients! More information? Please contact us!Learn more