End of deferral of payment

Topicality | 5 August 2020

The period of deferment of payment for tax assessments that already have been imposed will soon expire. That does not mean that the outstanding amounts on the tax assessments have to be paid immediately. After this summer you can expect a letter from the Dutch Tax Authorities with an overview of the outstanding amounts and a proposal for payment. This also applies to tax assessments which are imposed before March, 2020. Currently, the Ministry of Finance is preparing the payment proposal.

If you already received a letter in this respect, you can expect a new letter in which the Dutch Tax Authorities provide more clarity.

No extension of the term for deferral for payment

If you choose not to extend the deferral period, you will have no longer deferral for payment obligations which arise after the 3 months period for which deferral payment is granted. For example, if you file a VAT and/or payroll tax return, you are obliged to pay the amount due before the end of the next month (as usual).

Extension of the term for deferral for payment

If you expect that you cannot pay the tax assessments which soon will be imposed for instance based on a VAT and/or payroll tax return filed, it is possible to extend the term of deferment of payment that has been granted. For extending the deferral of payment certain additional conditions do apply. Please contact us if you need this additional deferral.

Starting to pay the outstanding amounts of the tax assessments

If you currently have sufficient liquid assets to pay the tax assessments for which deferral of payment has been granted, it is not necessary to agree to a separate payment scheme. You simply can choose to transfer amounts to the Dutch Tax Authorities. This payment will be deducted from the outstanding amount by the Dutch Tax Authorities. You can freely choose the moment and the amount you transfer until the moment you receive a payment proposal from the Dutch Tax Authorities.

If you choose to freely transfer amounts to the Dutch Tax Authorities in advance, you must state the payment reference of the relevant related tax assessment with the payment.

Resume

Until you receive a proposal for payment from the Dutch Tax Authorities after this summer, it is not necessary to pay the outstanding amounts on the tax assessments for which deferral of payment has been granted. However, you will have the usual payment obligations for tax assessments that will be imposed after the deferral period.

Under certain conditions you have the possibility to extend the deferral for payment if payment problems persist.

If you currently have sufficient liquid assets, you can choose to start paying the outstanding amounts of the tax assessments. Until you have received a payment proposal from the Dutch Tax Authorities, you are free to determine the moment of payment and the amount you wish to transfer.

Author

Marc Derks