Tax debt restructuring rules undergo changes

Rules regarding the restructuring of tax debts for businesses are undergoing changes. The Tax and Customs Administration (Belastingdienst) remains a critical party in most restructuring processes, particularly for companies that accumulated debt during the COVID-19 crisis. Under strict conditions, the Tax Collector may agree to debt settlements.

The Wet Homologatie Onderhands Akkoord (WHOA) allows viable companies to enter into binding agreements with creditors outside of bankruptcy. This mechanism prevents a single dissenting creditor from blocking an agreement that has been accepted by at least one class of creditors. The process is designed to strengthen the reorganizational capacity of businesses facing insolvency.