Dutch Tax Authority gives companies affected by Covid-19 a break

The Tax Authority is letting companies who can demonstrate in writing that they have run into problems due to the coronavirus defer on income tax, corporate tax, turnover tax or wage tax for the time being, the government said in a letter to parliament on Thursday, NOS reports.

The government is also expanding the guarantees for small and medium sized enterprises (SMEs). Henceforth, the government will guarantee 75 percent of SME loans, instead of the previous 50 percent.

So far 1,700 companies have applied for working time reductions, because they have less work for their staff due to the virus. This means that employees will receive temporary unemployment benefits. The hospitality industries in Amsterdam, Rotterdam and Noord-Brabant are particularly struggling. The Ministry of Social Affairs and Employment deployed extra staff to help process this influx in applications.

Despite the extra measures to help companies affected by the Covid-19 outbreak, the cabinet maintains that the Dutch economy is in good shape and that there are sufficient buffers to absorb the negative consequences of the coronavirus, according to NOS