Exceptional measures corona virus
Today the Dutch Government has decided to take exceptional economic measures because of the corona virus. The aim is to protect our jobs and income in addition to our health and to absorb the consequences for self-employed professionals, SME entrepreneurs and large companies. This package provides billions of euros in support every month for as long as it takes. The measures ensure that companies can continue to pay their staff, bridge the gap for self-employed workers and allow money to remain in companies through more flexible tax regimes, compensation and additional credit facilities.
If you want to know more about any of these measures, please contact us.
1. Establish temporary arrangement for compensation of wage costs
An entrepreneur who expects a loss of turnover (at least 20%) can apply to the UWV for a salary contribution for a period of three months (maximum 90% of the wage bill, depending on the loss of turnover). UWV will provide an advance of 80% of the requested contribution. This allows companies to continue to pay their staff. The condition is that no staff is fired for economic reasons during the subsidy period. This Temporary Emergency Measure Bridging for Retention of Work (NOW) will be opened as soon as possible and will replace the current working time reduction scheme. No new applications can be submitted for the current working time reduction scheme. Applications that have already been made, but not yet settled, will be handled in the new scheme. Entrepreneurs can apply for the allowance for a decrease in turnover from 1 March.
Before you apply for this arrangement it is important to know if this affects your employees rights for unemployment benefits. Right now this is still unclear so please contact us if you are considering this arrangement.
2. Extra support for independent entrepreneurs
The Government is introducing a temporary, flexible arrangement to support independent entrepreneurs, including self-employed persons, so that they can continue their business. The scheme is implemented by municipalities. Self-employed persons can receive additional income support for maintenance for a period of three months through an accelerated procedure. This supplements the income to the social minimum and does not have to be repaid. There is no asset or partner income test in this temporary assistance scheme for self-employed persons. Support under this temporary arrangement is also possible in the form of a working capital loan at a reduced interest rate.
As of right now, this arrangement is not yet ready. The Government urges people not to go to the municipalities yet. If you want to apply for this arrangement please let us know so we can inform you when this arrangement will be ready.
3. Relaxation of deferral of payment of tax and reduction of fines
Affected entrepreneurs can more easily apply for deferral of tax. The Tax Authorities will then immediately stop the collections. This applies to income, corporate, wage and turnover taxes (VAT). Any default penalties for late payment do not have to be paid. Moreover, it is not necessary to send evidence immediately. The entrepreneur gets longer to do this. The recovery interest that normally starts after the expiry of the payment term is temporarily reduced from 4% to almost 0%. This applies to all tax debts. The rate of the tax interest also temporarily goes to almost 0%. This reduction will apply to all taxes subject to tax interest. The Government will adjust the tax rate as soon as possible.
If you want to apply for deferral of tax, please let us know so we can file the application for you.
4. Broadening of the Guarantee for Entrepreneurial Financing
Businesses that experience problems in obtaining bank loans and bank guarantees can use the Guarantee Business Financing scheme (GO). The Government proposes to increase the GO’s guarantee ceiling from 400 million to 1.5 billion euros. With the GO, the Government helps both SMEs and large companies with a 50% guarantee on bank loans and bank guarantees (minimum 1.5 million – maximum 50 million euros per company). The maximum per company is temporarily increased to 150 million euros. The Government is committed to providing all warranty space that is required.
If you want to apply for this arrangement please contact your bank.
5. Interest discount small entrepreneurs on microcredits Qredits
Microcredit provider Qredits finances and coaches a large group of small and starting entrepreneurs, who often find it difficult to obtain financing through the bank. These include entrepreneurs in the catering, retail, personal care, construction and business services. Qredits opens a temporary crisis measure: for small entrepreneurs affected by the corona issue, a repayment of six months is offered and the interest during this period is automatically reduced to 2%. The Government supports Qredits for this measure with a maximum of 6 million euros.
Please contact Qredits if you have any questions about this.
6. Temporary guarantee for agricultural and horticultural companies
For agricultural and horticultural companies, a temporary guarantee for working capital will be provided under the Guarantee for SME Agricultural Credits (BL) scheme. In this way, the Government guarantees the credits of agricultural entrepreneurs. The Government aims to open this temporary expansion of the BL soon.
If you want to apply for this arrangement please contact your bank.
7. Consultation on tourist tax (central Government / municipalities) and culture sector
In consultation with the Association of Dutch Municipalities (VNG), the Government is discussing the possibility of ending (provisional) local attacks on entrepreneurs and withdrawing already imposed assessments on companies. This particularly concerns the tourist tax. The Government is also in consultation with the culture sector to be able to link up with generic measures and any specialization if necessary.
This arrangement is not yet ready. If you are interested in this arrangement please let us know and we will send you an update if the arrangement is ready.
8. Compensation scheme for affected sectors
The Government’s health measures have enormous consequences for income in a number of sectors in particular. Such as the (mandatory) closure of food and beverage outlets and cancellations in the travel industry. Moreover, this income is difficult to catch up when the coronavirus is over. The Government is therefore coming up with a compensation scheme with appropriate measures for companies in the aforementioned sectors. During the presentation they said this could be up to € 4.000. This is now being worked out and urgently submitted to the European Commission for the assessment of (permissible) state aid.
When this arrangement is ready we will send you an update.
There are a number of ways in which the Government is trying to help entrepreneurs and business owners to survive these hard times. If you have any questions or if you encounter any problems do not hesitate to contact us. We are doing our best to help you keep your business going.