The Belastingdienst (Dutch Revenue Service) have again urged entrepreneurs to apply for or extend tax deferrals on time. If they don’t, they may miss out on the favourable repayment scheme. Deferrals may be extended or applied for until June 30, 2021.
The special tax deferral allows entrepreneurs to put off paying their various tax bills for a while. Among others, the scheme includes income tax, corporation tax, statutory payroll tax and VAT. The deferral scheme is eagerly used. The Ministry of Finance estimates some € 16 billion worth of tax bills have already been deferred.
Plea to cancel entrepreneurs’ debts
For the time being, the special tax deferral scheme is to expire on July 1, 2021. The deferrals were at first meant to end on January 1 and later on April 1, but the government extended the scheme after all. Nevertheless, State Secretary Hans Vijlbrief of Finance has over and again said that tax debts are not supposed to continue to increase. At the same time, outside the government the opinion is growing that debts should be – perhaps partly – cancelled to allow entrepreneurs to make a fresh start after the pandemic.
Therefore, it is not impossible that adjustments will follow. If the scheme expires in July as scheduled, the generous repayment plan the government prepared will commence on October 1, 2021. Under that plan, entrepreneurs will be given 36 months’ time to repay their accumulated debts.
Extend or apply for deferrals with online form
As soon as the deferrals expire, companies will have to pay their taxes on time again. Therefore, entrepreneurs who have not opted to extend their deferrals, may have to start paying taxes again before July 1.
Entrepreneurs who have not yet applied for deferral are strongly advised by the Belastingdienst to do so. They can still do so up to and including June 30, 2021. Extensions can be arranged until the same date. Deferrals can be applied for or extended using an online form or a letter. A statement by an independent expert, for example an accountant, may sometimes be required. The various situations have been described here by the Belastingdienst.