The resolution on fiscal measures in connection with the corona crisis has been further specified and explained.
Fiscal corona reserve
For corporate income tax purposes, the expected ‘corona-related’ loss for the financial year 2020 (hereafter: ‘2020’) may be taken into account when determining the profit for the financial year 2019 (hereafter: ‘2019’). This is done through the formation of a ‘corona reserve’.
In order to be able to make use of this facility, a number of conditions must be met, including
- The expected loss for 2020 must be a consequence of the corona crisis.
- The expected loss must not exceed the total loss expected for 2020. The reserve may therefore not be constituted if a 2020 profit is expected.
- The reserve must not exceed the 2019 profit.
- The loss taken into account in 2019 must be fully included in the 2020 profit.
If the corporate income tax return for the year 2019 has already been filed a amended return including the reserve cab be filed. When preparing the financial statements for 2019, we will, of course, investigate whether it is possible to form a corona reserve.
Normative salary (gebruikelijk loon)
A director and major shareholder may reduce its normative salary in 2020. The resolution includes a calculation based on which the 2020 normative salary can be reduced. In addition, approval is subject to three conditions:
- The current account debt or dividend will not increase as a result of the lower normative salary.
- If the director and major shareholder has actually received more salary than is apparent from the calculation, the higher salary will apply.
- The approval does not apply to the extent that the turnover in the year 2019 or 2020 was affected by other causes than the coronacrisis.
1,225 Hour-criterion
Entrepreneurs liable to income tax may, under certain conditions, claim various business facilities. For some of these entrepreneurial facilities, the so-called hour criterion (spending 1,225 hours per year on the company) must be met. In connection with the corona virus, entrepreneurs in the period 1 March to 31 May 2020 will be deemed to have spent at least 24 hours a week on the business, even if these entrepreneurs did not actually spend these hours in view of the corona crisis. A supplementary arrangement will also be made for seasonal entrepreneurs, whereby the number of hours will be linked to the hours spent in the same period in 2019 and before.
Work-related costs scheme (werkkostenregeling)
For the first EUR 400,000 of the wage and salary bill per employer, the discretionary scope of the work-related costs scheme will be increased once and temporarily from 1.7% to 3% for the year 2020.
Deferral of mortgage
It will be temporarily possible to obtain deferral of mortgage payments without losing the right to mortgage interest relief for the owner-occupied home. This mortgage payment break must be agreed with the bank and is valid for a maximum period of six months. The payment break must commence no later than 1 July 2020.
TOGS
On the basis of the TOGS, entrepreneurs are, under certain conditions, eligible for an allowance of EUR 4,000 . It has been indicated that this is a one-off, tax-free gift.
