R&P Tax Alert – Fiscal end-of-the year tips 2020! (part 1/3)

This is the period of the year when most companies are busy forecasting the results for the year 2021 and the coming years. With this forecast, it is recommended to review your tax position again. In this R&P Tax Alert, we offer you guidelines that can be included in the recalibration of your tax position for the coming year.


  1. Defer the payment of corporate income tax: form a replacement reserve and substantiate your replacement planDid your company sell assets this year and make a profit? Then this profit may be subject to corporate income tax. You can prevent this under certain conditions by reserving the profit in a replacement reserve.The company must have the intention to make new investments in the coming years. As long as you do not invest, you must be able to demonstrate your replacement plan. Consider, for example, recording the intended investments in management decision.
  2. Replace your assets on time!Have you formed a replacement reserve in the previous years? If you do not invest on time, the replacement reserve will be added back to the taxable profit and which will be subject to corporate income tax on this. Therefore, invest on time. A qualification as ‘replacement’ is relatively easy to be achieved.
  3. Look for the possibility of forming a provisionAre you reasonably certain that you will have to incur certain (large) expenses in 2021? Then you may already be able to reduce your profit for 2020 by forming a provision.
  4. Prevent loss evaporationHas your company suffered a loss in the past? Then the company can offset that loss against future profits. However, this settlement is limited in time. It is sometimes possible to take profit earlier or to postpone costs until next year, so that you will make (more) profit this year. Please contact us for the possibilities.

This month, keep an eye on our website and social media channels for more fiscal end-of-the year tips!

Do you have questions? Please do not hesitate to contact us at +597 422877 or by email

December 11th, 2020



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