Our memorandum with flowchart provides an up-to-date explanation of how the adjustment affects the recovery of VAT on staff benefits, promotional gifts and other gifts. We also explain the effect of the VAT adjustment for the private use of company cars.
In a letter sent to the Lower House of Parliament on December 9, 2020 the government announced that the existing relief and recovery package for the economy and labor market – which was announced in August and has applied since October 1, 2020 – would be amended and some elements expanded.
This Decree potentially provides a meaningful option to foreign entities that have not been able to otherwise obtain relief for Dutch dividend withholding tax through either a reduced treaty tax rate or an exemption.
With the end of the year less than a month away and the Christmas holidays fast approaching you are probably busy wrapping things up and setting goals for next year. This last FS Tax Newsletter for the year 2020 briefly summarizes the relevant tax developments of the last few months.
On November 16, 2020 the sixth progress letter ‘Working as a self-employed person’ was published. In this letter, the Minister of Social Affairs and Employment and the Deputy Minister of Finance update the Lower House of Parliament on the status and follow-up steps with regard to the measures on self-employment.
If the intended acquisition of a participation cannot be realized, for example due to the corona crisis, we recommend that you examine the VAT implications of this in more detail.
As the end of the year is fast approaching, many organizations will soon start preparing their year‑end financial statements. The announced 2021 Tax Plan may have a significant impact on those financials and especially the income tax position. The impact should be reflected once the 2021 Tax Plan is (substantively) enacted.