R&D withholding tax deduction: adjustments made to 2020
The Budget Package Other Tax Measures 2020 provides for a few adjustments to the Wage Tax Reduction and National Insurance Premium Act (WVA). The following changes are proposed for 2020:
1. Expansion of the number of moments at which an R&D statement can be filed from three to four per calendar year;
2. Extension of the deadline for submitting an application to the day prior to the period to which the application relates (respectively December 20 of any year) instead of at least one month prior to that period; and
3. Introduction of a delegation provision in the WVA in order to enable ministerial regulation for the excusability of a deadline being exceeded in the event of a disruption of the digital gateway.
The first change relates to an extension of the number of periods during which an R&D statement can be applied for. Companies with staff (R&D withholding agents) can, in principle, apply for an R&D statement at different times during the calendar year. Currently, the law provides for a maximum of three applications per calendar year for each applicant/witthholding agent. The application must cover a period of a minimum of three months and a maximum of one year (Article 22, paragraph 1, WVA). Because an R&D statement applies to a consecutive period of at least three calendar months falling within one calendar year – and a calendar month to which an application relates can no longer be included in a later application in the same calendar year – the R&D withholding agent has a maximum after the change four (instead of three) application moments for an R&D statement per calendar year.
The second change relates to the deadline when an application is still considered to be timely filing. This moment is shortened from at least one month to at least the day prior to the period to which the application relates (proposed Article 22, third paragraph, of the WVA). An exception is made with respect to the Christmas and New Year period. For applications that relate to the period starting on 1 January of a calendar year, it is therefore proposed to set the deadline for submission on 20 December of the preceding calendar year.
The third proposed change concerns the addition of a delegation provision to the WVA in order to be able to lay down rules by ministerial regulation on the excusability of a deadline being exceeded in the event of a disruption of the digital counter. The proposed Article 27a of the WVA contains a delegation provision with which further rules can be laid down by ministerial regulation with regard to in the event of a disruption of the digital facility made available for this purpose at RVO.nl qualify as excusable of a deadline being exceeded with regard to:
a. an application for an R&D statement as referred to in Article 22, first paragraph, of the WVA;
b. an application for an R&D statement as referred to in Article 27 (1) of the WVA;
c. a statement of citizen service numbers as referred to in Article 22 (4) of the WVA;
d. a statement of the hours spent on research and development work and, if applicable, the realized costs and expenses as referred to in Article 24, second paragraph, of the WVA;
e. a statement that the number of hours spent on research and development work is less than 500 hours as referred to in Article 27 (4) of the WVA.
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Source: Package Tax Plan 2020, Other Tax Measures 2020