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Besides VAT, personal income tax, payroll tax and corporate income tax, the temporary deferral policy now applies to tax on games of chance, insurance premium tax, the landlord levy (verhuurderheffing), environmental taxes (energy tax/surcharge for sustainable energy (Opslag Duurzame Energie; ODE), coal tax, waste tax, tax on tap water), customs duties, excise duties (mineral oils, alcohol and tobacco), consumption tax on non-alcoholic drinks and similar taxes in the Dutch Caribbean.

In these turbulent times, it is very important to keep a close eye on your transfer pricing policy. We've listed the most important things you should consider when it comes to your transfer pricing matters.

The scheme provides for compensation for payroll costs if an employer expects and ultimately experiences a decline in turnover of 20% or more as a result of the corona crisis. Compensation will be granted in relation to the decline in turnover and will amount to 90% of the eligible payroll costs.

On December 20, 2019 the Austrian Bundesfinanzgericht asked the Court of Justice of the European Union for a preliminary ruling on the concept of a ‘fixed establishment’ in the Titanium Ltd case (C-931/19). The case is not only relevant for property letting companies, but potentially also for all VAT taxable persons with foreign activities, as it may provide a more detailed interpretation of the EU concept of fixed establishment.

On March 27, 2020 the Court of Appeals Den Bosch rendered an interesting judgment about the recovery of VAT in a case concerning a financial institution. The Court ruled that the bank’s ‘actual use method’ had been sufficiently substantiated.

The Dutch Customs Authorities announced a package of measures to support companies that are affected by the corona crisis. These measures are intended to support those that are temporarily facing difficulties in meeting their payment obligations under the applicable customs & excise regulations and that may fail to comply with the respective deadlines and formalities set under these regulations.

In a letter dated March 17, 2020 sent to the Lower House, the government announced a number of important measures. The government wishes to use these bridging measures to support employers and self-employed persons during the period in which the economic consequences of the coronavirus are felt. In our brochure we summarize the specific measures that could be relevant for you as an employer.

On March 19, 2020 the Deputy Minister of Finance, Hans Vijlbrief, informed the Lower House that every business that is faced with financial difficulties as a result of the corona crisis will be eligible for a deferral of payment with regard to their tax debt. As soon as the business has filed the request, the collection of their VAT, personal income tax, payroll tax and corporate income tax debts will be put on hold. The deferral  of payment for businesses during the corona crisis will apply, in principle and automatically, for a period of three months.

On March 17, 2020, the EU heads of government decided that travelers from outside the European Union will no longer be allowed to enter the Schengen area, unless it is absolutely necessary for them to do so. The Netherlands has followed this up by closing its borders to citizens from outside the EU from March 19, 2020 at 6.00 p.m. The entry ban has now been extended to July 1, 2020.

With the passage of time, the corona pandemic is having an increasingly dramatic effect on the Dutch business community. The measures announced by the government on March 12, 2020 proved to be inadequate. For this reason, in a letter dated March 17, 2020, the government announced, in principle for the coming three months, additional measures to further support Dutch employees, self-employed persons and the Dutch business sector. These complement or extend the measures of March 12, 2020 and are discussed in our memorandum.