Special tax deferral extended until October 1, 2021

Dutch tax deferral

The arrangement of the special deferral of payment (bijzonder uitstel van betaling (BUVB)) in the Netherlands will be extended further and will apply until October 1, 2021. Due to the corona virus, the Dutch government has decided to grant entrepreneurs a postponement of payment of taxes. Dutch entrepreneurs, who had previously submitted an application for a three-month deferment, can request an extension of the tax deferral until October 1, 2021.

From October 1, 2021 onwards, all entrepreneurs are expected to regularly pay their taxes again. For instance, wage and sales taxes for the last tax period before 1 October 2021, have to be paid on time. The last tax period before October 1, 2021 includes, among other periods, the third quarter of 2021 or September 2021. 

Start of repayment

It has been decided that the start of the repayment term will be postponed one year, from October 1, 2021 to October 1, 2022. Also the repayment term for tax deferrals will be extended from 3 years to 5 years, ending October 1, 2027. Paying off, in whole or part of, the tax debt earlier than this term however, is a possibility. Cancelling the tax debt (in whole or in part) was explicitly not opted by the government.

Interest on special tax deferral

To ensure that entrepreneurs can easily apply for a deferment of payment, the Dutch government will extend the lower recovery interest rate of 0.01% until 31 December 2021. Normally the interest rate in the Netherlands is 4%. From 1 January 2022, the recovery interest will be increased in steps of 1 percentage point:

  • 1% from January 1, 2022
  • 2% from July 1, 2022
  • 3% from January, 2023
  • 4% from January 1, 2024

For more information on the special deferral of payment, please visit https://www.rijksoverheid.nl.

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