The government has published a new decision with ‘approvals’ in respect of the corona measures. It contains rules on how the Belastingdienst (Dutch Revenue Service) should deal with the tax deferral scheme, the work-related expenses scheme and the normative wages of DGAs (directors/major shareholders).
For 2021, there is still a huge package of support measures to pull businesses through the corona crisis (tool). These measures also include commitments on how companies and organizations may deal with the situation in practice. These commitments are contained in a policy decision with approvals, which has now been updated and published in the Government Gazette.
Tax deferral and flexible hour criterion
The approvals cover a range of corona-related tax measures. The interventions were already known, but thanks to the approval decision, it is now clearer to the business community what it is facing in practice. Some of the approvals concern the extension of the special deferral of tax payments until July 1, 2021. The decision sets out the conditions for entrepreneurs who want to apply for a deferral of three months or more. Also, the decision now provides for the repayment period for tax debts not to start until October 1, 2021. Furthermore, for example, the approval for a tax deferral application to be also a notification of inability to pay will now continue until July 1, 2021.
The decision also sets out that the hour criterion will continue to be eased until July 1, 2021. Entrepreneurs for income tax purposes must meet this criterion to be eligible for all kinds of entrepreneurial allowances (toolbox). They must devote at least 1,225 hours to their business in a year, or 23.5 hours a week. The approval means that the tax authorities assume that entrepreneurs now still devote at least 24 hours a week to their business, even if this is not the case in actual practice.
Tax-free margin in the work-related expenses scheme and normative wages
The decision also contains approvals regarding statutory payroll taxes and corona:
- The percentage of the tax-free margin in the work-related expenses scheme will be increased to 3% for the first € 400,000 of the wage bill for tax purposes in 2021. If it exceeds that amount, the rate will be 1.18%. This increase has yet to be incorporated into law, but the approval means that it is already in force.
- In 2021, DGAs can use a calculation formula based on the company’s revenue to determine their normative wages. The approval decision now confirms that DGAs may again apply this formula without first consulting the inspector.
- The leniency regarding some administrative obligations in payroll records has also been extended.
- The decision contains that the flexible treatment of fixed commuter travel expense allowances will end on April 1, 2021.