Covid-19 And Your Tax Situation

During difficult and uncertain times, it can sometimes be hard to follow what is new and what is going on in the world. Most likely you are following the news. However, it is hard to keep track of all the changes, therefore, Blue Umbrella has summed up some current updates regarding your taxes.

Income tax filing 2019

If you were invited by the Dutch Tax Office to file your income tax declaration for 2019, you can do this until May 1, 2020. In case you need more time, you could request an extension. If you do, you can get an extension until September 1, 2020. You can request an extension by calling the English-speaking department of the Dutch Tax Office: +31 555 385 385. If you hire an accountant to do your taxes, you can ask him to request an extension on your behalf. Please make sure you do this on time, to avoid any setbacks.

Deadline US income tax filing delayed

Normally, the deadline of the US income tax filing 2019 would be April 15, 2020. However, the IRS decided to extend the deadline to July 15, 2020. This means that if you have to file your US income tax return, you now have some more time to get it sorted.

You are an entrepreneur (or ZZP)

If you are an entrepreneur (or ZZP), the Dutch tax authorities have taken some measures to help you through these tough times. You can request an extension for paying your taxes for a period of 3 months. This includes your income tax, corporate tax, sales tax and payroll taxes. Please note that this will not exclude you from declaring your tax declarations on time.

You will also have to wait to request an extension until you have received a decision from the Dutch Tax Office that mentions that you have to pay a certain amount. If there is no payment due yet, the Dutch Tax Office cannot accept your request for an extension.

Once you have sent this extension form to the Dutch Tax Office, you do not have to send this in every time you receive a payment request from the Dutch Tax Office. The one-time request will be sufficient for a period of three months.

You can access the extension form on the site of the Dutch Tax Office after logging in with your DigiD. After you sent the request to the Dutch Tax Office, you will receive a written confirmation.

Are you expecting a lower profit because of the coronavirus? Then we recommend you change your provisional results with the Dutch Tax Office by submitting a provisional income tax declaration. This way, you can lower your estimated income, so you will pay fewer provisional taxes.

Childcare allowance

As of March 16, 2020, if you are not working in a vital sector, you are asked to stay home. Your childcare provider and school have been asked to restrict access to children whose parent(s) are working in a vital sector. The question that immediately arises is “do I have still have to pay my childcare provider?” The answer to this question is: yes. You will have to keep paying your childcare provider as usual.

The second question that this raises will probably be “am I entitled to compensation for this?” The answer to this question is most likely yes.

Compensation in childcare expenses is available for parents who are using regular childcare and continue to pay their childcare costs during this period. Compensation is also provided to parents working in a vital sector and whose children may continue to receive childcare. The same rules apply for sole trader parents and for in-home childcare providers (gastouders).

Also, you may ask yourself whether you can terminate your childcare provider’s contract? It is a possibility, however, the Dutch cabinet highly recommends you not to do this unless you are no longer in need of childcare services and support.

You may be worried that if you are working fewer hours right now, this will affect your childcare allowance. This is not the case. The childcare allowance entitlement remains unchanged.

You want to speak with the Dutch Tax Office

If you want to speak with the “Belastingtelefoon”, please note that there are adjusted opening hours. Due to the coronavirus, there are fewer people working at the Dutch Tax Office.

The Dutch Tax Office is available from Monday until Friday from 9am until 5pm.

Need help with declaring your taxes? Blue Umbrella is more than happy to help. Give them a call via (+31) 0 20 268 7560 or send them an email.

RECENT NEWS

Celebrating Hanukkah In The Netherlands

As the year draws to a close and more and more of your daily life is conducted in the darkness of winter, the Jewish fes... Read more

Why The Netherlands Is The Best Place For Expats To Start A Business

Practica Coaching offers various coaching programmes, tailored to help you take that next step in your career or to help... Read more

How To Deal With Difficult People At Work

I was brought to tears by my boss once in my life. I was 21, inexperienced and a bit naive - just like a 21-year-old sho... Read more

7 Dutch Christmas Traditions To Incorporate Into Your Festivities

Whether this is your first Christmas in the Netherlands or you just want to start celebrating the festive season the Dut... Read more

How To Get A Car In The Netherlands: A Guide For Expats

Moving to a new country can be stressful. There is a lot to take care of, including transportation such as a car. Mobili... Read more

Dutch Tongue Twisters To Master Your Pronunciation

Learning Dutch is challenging - especially when it comes to the pronunciation - but if you really want to put yourself ... Read more