Corona measures in corporation tax

24 September 2020
Article

The Dutch government is going to lay down a number of corona measures, such as the creation of a ‘corona reserve’ for the losses entrepreneurs have suffered due to the corona crisis.

Portraitphoto of Vincent Wanningen
Written by:
Vincent Wanningen Senior tax advisor
Corona measures in corporation tax

Exemption of the Compensation for Entrepreneurs in Affected Sectors

Based on the Compensation for Entrepreneurs in Affected Sectors (TOGS), a compensation of €4000 was paid to business owners earlier this year, subject to conditions.  SMEs can still, subject to conditions, be reimbursed for their fixed costs in the TVL scheme. This compensation depends on the size of the organisation, the amount of the fixed costs, and the lost profit. The payments based on the TOGS and TVL schemes are not included in the profit and no tax is owed on these compensations.

Tax corona reserves in corporation tax

Did you incur a loss in 2020? You can settle this loss (carry back) with 2019. A loss in 2020 is realistic for a lot of organisations due to the corona crisis. However, any tax assessments for 2020 will be imposed in 2021, at the earliest. It will take some time before the loss set-off will lead to a tax refund. This could result in liquidity problems. The government has therefore decided to help organisations subject to corporation tax.

These organisations, subject to conditions, will have the option of creating tax corona reserves. Tax corona reserves offer the possibility to set off an expected loss in 2020 at an earlier convenience.

Tax corona reserves will now be defined under a legal basis.

Like to know more?

Would you like more information about corona measures in corporation tax? Please contact Mark Broekhuizen, senior tax advisor, on telephone number +31(0)40-2942626 or send Mark an e-mail.

Do you want to know more corona measures in corporation tax? Our specialist will gladly assist you!

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