As a result of the corona crisis, setting an investment on hold and holding the capital raised for it may occur more frequently. If the capital is held in expectation of a new investment, we believe it is possible to avoid a VAT deduction limitation.
In its judgment of May 15, 2020, the Supreme Court upheld the decision by the Court of Appeals. The building in question was leased on a VAT-exempt basis. As a result of this judgment, parties will be confronted with a higher amount of non-recoverable VAT.
The previous updated policy statement has now been replaced by the policy statement of May 6, 2020, in which the approvals in the previous policy statement are supplemented with new approvals, including with regard to the corona tax reserve, the normative salary and the work-related costs rules.
On May 7, 2020 the Court of Justice of the European Union (‘CJEU’) rendered judgment in the Dong Yang Electronics case (C-547/18). The case concerned whether a subsidiary may, for VAT purposes, constitute a fixed establishment, and, if so, how the service provider must determine whether it performs its services to the parent company or the fixed establishment.
Not only are companies assessing the impact of the multitude of changing circumstances created by COVID-19, they are also having to sort through a host of new laws and regulations to determine how they might be affected. In most countries, the tax authorities have responded quickly to the changing circumstances of people and business by introducing relief measures such as deferred tax filings to reduce the pressures on businesses, tax-rate reductions, and VAT exemptions.
By policy statement dated April 14, 2020 the Deputy Minister of Finance announced a number of specific approvals as a result of the corona crisis. That policy statement has now been replaced by the policy statement of April 22, 2020, in which the approvals in the previous policy statement are supplemented with new approvals, including with regard to deferral of payment, payment default penalties and the notification of inability to pay.
The multilateral instrument (MLI) entered into force in the Netherlands on January 1, 2020. For many treaties this means that the application of such a treaty is not as self-evident as before. Do you want to avoid unpleasant surprises, also once the COVID 19 storm has died down? We have summarized the most important points of the MLI for you!
The government is introducing additional tax measures as a result of the corona crisis. By letter dated April 24, 2020 sent to the Lower House of Parliament, the Deputy Minister of Finance announced six measures, including the possibility to form a corona tax reserve that can be set off against the profit for the year 2019.
By letter dated April 22, 2020 the Minister of Social Affairs and Employment announced an important expansion of the group approach in the NOW. We discuss this expansion briefly. We also discuss the announced easing of the unemployment insurance contributions differentiation and the imposition of penalties in respect of highly skilled migrants.
By letter dated April 14, 2020 sent to the Lower House of Parliament, the Deputy Minister of Finance released a policy statement that further elaborates on the emergency tax measures by means of the granting of several specific approvals.