Monday 30 November 2020

What you need to know about coronavirus and your tax affairs

Illustration: Depositphotos.com

Worrying about your taxes on top of coronavirus? The tax experts at Blue Umbrella have drawn up list of the government’s special tax measures which you should know about.

Filing your income tax
If you have been contacted by the Dutch tax office about filing a 2019 tax return, you need to complete the paperwork by May 1, 2020. If you need more time, you can request an extension to September 1.

You can request an extension by calling the tax office’s English speaking department on +31 555 385 385. If you have an accountant or a tax advisor, you can ask them to make the request on your behalf. Please make sure you do this on time, to avoid any setbacks.

US income tax filing delayed to July 15
The normal deadline to file US taxes in April 15. However the IRS has decided to adjust the deadline this year to July 15, 2020 because of the coronavirus crisis. This means you have three more months to sort out the paperwork. A specialist such as Blue Umbrella can help you do this.

If you are an entrepreneur or self-employed
The Dutch tax authorities have come up with a package of measures to help freelancers and small firms who may have been hard hit financially by corona virus.

For example, you can request a three month extension to the deadline for paying income tax, corporate taxes, sales tax and payroll taxes. Please note does not mean you can skip the deadline to make the actual filings.

You can only make this request once the tax office has assessed your tax liabilities for the period, but you only have to make it once. You can make the request online using your DigiD.

Are you expecting lower profit because of coronavirus? Then you can change your provisional results by submitting a provisional income tax declaration. This way you can lower your estimated income, so you will pay less provisional taxes. Contact a specialist advisor if you need help.

Childcare allowances
Since March 16, people not working in a vital sector have been asked to work from home. Schools and daycare services have also been closed to all but the children of vital sector workers.

Many people have been asking if they still have to pay their childcare provider even though they can’t use the facilities. The answer to this question is yes. You will have to keep paying your childcare provider although you will be refunded later.

In most cases you will be entitled to compensation for this in the form of kinderopvangtoeslag as usual as well. Parents using authorised childcare services who already get help to pay or it will continue to do so, and the allowance will remain at the same level even if your income has been cut. If your situation is complicated, it may be worth contacting a specialist advisor.

You may be wondering if is an option to end the childcare contract. You can, but the government recommends against this, unless you think you will no longer need it once the crisis if over.

Contacting the tax office
If you want to speak to a tax official via the Belastingtelefoon, please note that there are adjusted opening hours. You can contact them Monday to Friday from 9am to 5pm.

If you need help with filing your taxes, Blue Umbrella can help you. Ring (+31) 0 20 268 7560 or send an email to info@blueumbrella.nl

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