Special deferment of payment - new developments

29 April 2020 - As of 19 March 2020, entrepreneurs coping with liquidity problems due to coronacrisis will be granted with three months deferment of all assessments of income tax, health insurance law, corporate tax, payroll tax and turnover tax (vat), gambling tax, excise duty, consumption tax for alcohol-free drinks, insurance tax, landlord levy, energy and other environmental taxes.

For the taxes mentioned above, a deferment applies until 19 June 2020 (with a possibility for extension). The application for a special deferment of payment does no longer need to be supported by a motivation letter justifying the reasons for a deferment. However, this request can be made only after tax return has been submitted and receipt of the (additional) assessment received. As soon as the request for postponement has been received by the Tax Authorities, the Tax Authorities will stop the collection.

When applying for a special deferment of payment of payroll taxes and turnover tax, a separate notification of insolvency is no longer necessary. The request for deferment of payment is regarded as a notification of insolvency. The Tax and Customs Administration will assess this notification of insolvency and you will receive a separate notice. This applies to both past periods as well as to future periods. We recommend that you continue to make a declaration of insolvency for pension contributions if they can no longer be paid due to insolvency.

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If you require more information, please feel free to contact your Mazars contact person. He or she will be able to assist you in submitting an application or bring you into contact with our experts. We will be happy to help you.

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