How does the coronavirus crisis affect entrepreneurs in the Netherlands?

The COVID-19 pandemic has had a big impact on the economic and social life in the Netherlands. Due to this impact, the government took measures within the Dutch tax system to ease the financial burden. Below, Blue Umbrella has listed the most important points that could affect your situation as a freelancer or as an employer in the Netherlands.

Extension(s) 

As you have probably already heard, the Dutch tax office granted everybody an extension for three months on all tax payments, on request. In certain circumstances and with the approval of an intermediary, the Dutch tax office even granted longer extension periods on request.

Paying interest on taxes?

In normal situations, the Dutch tax office charges 4% interest if tax payments are paid after the initial deadline. This interest percentage has been lowered to 0%.

Hour criteria (1225 hours)

Some entrepreneurs can get certain tax credits in the Netherlands if they have spent more than 1225 hours on their business. With the COVID-19 pandemic, the Dutch tax office understands that meeting these hours will be almost impossible in some cases. To help entrepreneurs who depend on these tax credits, the Dutch tax office is going to ease this condition. Details regarding this will hopefully be shared in the near future.

Allowances for entrepreneurs

The Dutch government introduced a couple of allowances for entrepreneurs to cover the financial burden for the past and possible future months. These allowances will not be taxed as business income.

Online fitness lessons 

Normally, personal trainers or other trainers who help people with their fitness training online charge 21% VAT on top of their service fee. During this time, they may now charge 9% VAT to their clients, so the online fitness classes will become cheaper for private individuals.

Face mask public transport 

As of June 1, people who travel by public transport will need to wear a face mask, otherwise, they may be fined. It is now possible to get a net-reimbursement from your employer for the purchases of this needed face protection if you need it to travel to work. This will be covered under the net travel reimbursement.

Net reimbursements

With the Dutch labour cost scheme, your employer can provide you with net reimbursements for certain expenses. This is possible for 1.7% over the first 400.000 euros of the salary budget. Reimbursements or payments above this 1.7% can be taxed against 80%. Now, the limit has been increased. Employers can use 3% over the first 400.000 euros for the reimbursements with the Dutch labour cost scheme. This might help you set up your home office a bit more easily.

Lowering of the usual salary scheme for B.V. owners 

Being an owner of a B.V. in the Netherlands, you are obliged to pay yourself a minimum amount of salary based on a regulation in the Dutch tax law, also known as the usual salary scheme. This can result in the outcome, that as director and main shareholder of your own B.V., you need to pay yourself 46.000 euros in gross salary.

Considering the hard conditions we are experiencing right now, it is easier to get this obligation wavered or lowered at the Dutch tax office. This makes it possible for you to run your own company for the next couple of months, without having to think about the often difficult salary requirements.

If you are still unsure about certain tax-related topics or you have questions about your own company’s taxes, Blue Umbrella can help you out. Contact Blue Umbrella by sending them an email or giving them a call between working hours (Monday until Friday) via (+31) 0 20 268 7560.