Questions about your challenges?
Do you have questions regarding your challenges during the coronacrisis? Please contact your trusted Mazars adviser or use the contact form.
The fiscal corona reserve
3 June 2020 - One of the newly introduced tax measures concerns the fiscal corona reserve. This reserve makes it possible to accelerate offsetting an expected coronacrisis related loss for 2020 against the result for 2019. Normally, the loss for 2020 can only be set off against the result for 2019 if i) the corporate income tax assessment for 2019 has been definitively determined and ii) the corporate income tax return 2020 has been submitted.
As a result of this measure, the expected loss for 2020 can be deducted from the profit in 2019 in the 2019 corporate income tax return. The corona reserve may not exceed the profit of 2019. In addition, a refund of the previously paid corporate income tax for 2019 can already be requested by means of a further provisional corporate income tax assessment for 2019.
The following conditions apply to the creation of a fiscal corona reserve:
- There is an expected corona-related loss in fiscal year 2020
- The expected corona-related loss cannot exceed the total loss expected by the taxpayer for fiscal year 2020
- The addition to the corona reserve in the 2019 financial year amounts to a maximum of the profit for the 2019 financial year that would apply without the creation of this reserve
- The corona reserve will be fully included in profit no later than the fiscal year 2020
- The addition to the corona reserve is included in the 2019 corporate income tax return under ‘miscellaneous tax reserves’
WANT TO KNOW MORE?
Do you require more information? Please contact Eric Klein Hesseling by email or by phone +31 (0)88 277 23 84 or Erik Stroeve by email or by phone +31 (0)88 277 24 55. They will be happy to help you.
Want to know more?
Eric Klein Hesseling Partner
Want to know more?
Erik Stroeve Partner - Tax Advisor
Your challenges during the coronacrisis
These are special times where we face major challenges. The impact of the coronavirus is significant and the situation is constantly changing. We will inform you about new developments and measures and are of course at your disposal to support you where necessary with your current challenges. Do you have questions? Please contact your trusted Mazars adviser or use the contact form.