60,000 entrepreneurs with Covid debt payment arrears to tax authorities

60,000 entrepreneurs with tax debt from the coronavirus crisis have payment arrears with the Tax Authority. Outgoing Secretary of State for Finance Marnix van Rij stated in a letter to the Tweede Kamer, the lower house of the Dutch parliament, that this group of entrepreneurs collectively owes a total of 4.1 billion euros to the Tax Authority. Nearly a quarter of all businesses with coronavirus-related debt are behind on payments.

In August, even more businesses had payment arrears: back then, the number was over 90,000. Since then, some payment plans have been revoked. Of the 60,000 companies that have missed their payment terms, nearly three-quarters (around 43,000) are categorized as small businesses.

About 27,000 companies not only delay in settling their coronavirus debts but also have payment arrears that arose after the coronavirus crisis. This is a reason to revoke the payment plan. The Tax Authority will remain lenient until at least April 1, 2024. As a result, the tax office no longer has a priority over other creditors and is more likely to approve requests to write off the debts.