Finance

ABN Amro: corporate tax debts increased due to corona

This is apparent from research by ABN Amro. The bank relied on figures from Statistics Netherlands (CBS).

Catering businesses hit hard

In total, the debt of the business community with the tax authorities at the end of August was 18.3 billion euros. Earlier this year it was still about 16 billion euros.

The blame is unevenly distributed. For example, 44 percent of restaurants are in debt and other catering businesses have also been hit hard. The debt must be paid off in five years.

Loss of turnover

It is striking, according to the economists of ABN AMRO, that even more postponements have been requested from the Tax Authorities in recent months in sectors that have reopened. They see loss of turnover as a possible reason for this.

The catering industry, zoos and museums, for example, have still had to deal with restrictions on the amount of customers or visitors who were allowed to enter. The number of tourists is also still far behind the situation before corona.

Huge debts

In some sectors, the high tax debts could potentially lead to problems. For example, between a third and half of cafes and restaurants have a tax debt that averages more than four years of gross profit.

Shoe and clothing stores, parcel delivery companies and payroll companies are also having a hard time, as are printing companies, for example. These had to do with the loss of a lot of income, such as printing for festivals, while they also have to continue to invest in digitization in order to remain relevant.

Incidentally, much more postponement has been requested, a total of 41.9 billion euros by 376,000 entrepreneurs. More than half has therefore already been repaid or disappeared because the final tax assessment turned out to be lower than the provisional tax assessment.

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