During the Covid pandemic, the Caribbean Netherlands (so-called BES-islands) tax authorities introduced a specific deferral of payment for debts incurred in the pandemic to assist entrepreneurs with the cash flow problems arising due to the lack of tourism and income in the BES islands. This special deferral of taxes ended in September 2021 and thus all debts incurred after that period are payable in accordance with the normal regime.
Special Payment Plan
In July the government of the Netherlands announced they would be looking at a special tax debt payment plan for entrepreneurs struggling to repay the deferred debts incurred during the pandemic. The Caribbean Netherlands tax authorities issued a press release providing the conditions to apply for a special payment plan for these debts (the “coronavirus debts”).
– The “coronavirus debts” should all be paid before October 1st, 2027, in principle in 60 equal installments, beginning October 31st, 2022. *1
– All payment obligations for debts incurred after October 1st, 2021, including all current payments need to be met completely within the applicable deadlines. *2
– All interest accrued on the debts needs to be paid before October 1st, 2027, as well.
The interest will be calculated as follows:
– 0% annual interest over the period from March 23rd, 2020, up to and including December 31st, 2021
– 1% annual interest over the period from January 1st, 2021, up to and including June 30th, 2022
– 2% annual interest over the period from July 1st, 2022, up to and including December 31st, 2022
– 3% annual interest over the period from January 1st, 2023, up to and including December 31st, 2023
– 6% annual interest over the period starting January 1st, 2024
General Payment Plans
Apart from the specific circumstance concerning the Covid pandemic, it is not very well known that the tax authorities have always been open to discussing payment plans with entrepreneurs who experience temporary difficulties with fulfilling their obligations.
HBN Law & Tax has a team of tax procedural law specialists with an in-depth experience in tax collection proceedings, liability of (third party) taxes up to and including tax penalty procedures, and special collection measures.
They are happy to assist you in any tax debt collection procedures or negotiation of payment plans.
[*1] Other payment plans can be negotiated, as long as the taxpayer proves the total debt will be paid before October 1st, 2027.
[*2] The payment plan may be rescinded when the payment obligations are not met after a reminder has been sent.