In October 2022, business owners must pay the first instalment of the coronavirus-related debt they have accumulated to the Tax and Customs Administration.
See also our article Repaying coronavirus-related debts over 7 years.
Corona debts
The term ‘coronavirus debts’ refers to tax debts that have accrued under the scheme for exceptional deferral of payment in force from 23 March 2020 to 1 April 2022 inclusive, as well as any pre--coronavirus debts that also fall under this scheme. Business owners will receive a statement from the Tax and Customs Administration setting out the balance of these coronavirus debts.
In total, just over 279,000 business owners have such coronavirus-related debts. The total amount of outstanding coronavirus-related debts stands at nearly €21 billion.
Easing of restrictions
The accumulated coronavirus debt must be repaid in 60 equal monthly instalments from October 2022 onwards (faster repayment is, of course, permitted). The first monthly instalment must be paid by 31 October 2022 at the latest. This payment arrangement will be made more flexible in the following two respects, according to a Chamber letter from the State Secretary for Finance, van Rij:
- Upon request, the repayment amount may be paid, not on a monthly basis, but quarterly are met;
- Upon request, a one-off payment holiday granted for a maximum of 3 months (in which case the outstanding amount will, of course, be added to subsequent repayment instalments).
The written application must set out the reasons why there are repayment difficulties. Furthermore, the general condition that all new tax liabilities arising during the term of the payment arrangement must be paid on time remains in full force.