Corona: Full overview of Dutch government's measures

As a consequence of the coronavirus and the measures taken to counter its spread, many companies are faced with an abrupt drop, or even a complete standstill, in revenues. This can lead to immediate cash flow problems. On Tuesday 17 March 2020, the Dutch government announced a package of additional measures to support businesses.

The measures are partly in addition to those previously taken (reduction of working hours, broadening of the conditions for governmental guarantees for SME loans, and the granting of deferral of payment of VAT, wage tax, personal income tax and corporate income tax). Furthermore, the package contains a number of relaxations of the measures taken earlier. Below is a complete overview of the support measures in the Netherlands, as of 17 March 2020.

Emergency package to preserve jobs and economy

Compensation for labour costs

The government is introducing a new emergency measure to help companies of all sizes meet wage costs. This is the temporary emergency measure for maintaining jobs (in Dutch: Tijdelijke noodmaatregel overbrugging voor werkbehoud (NOW)). This measure replaces the scheme for Working Time Reduction (in Dutch: Werktijdverkorting (WTV)), which has been discontinued with immediate effect.

The NOW is open to companies of all sizes. The scheme is disconnected from the Unemployment Act (in Dutch: Werkloosheidswet (WW)) so that the employee's rights under this Act remain untouched. For the NOW the following conditions are applicable:

• The NOW applies to companies with a loss in turnover of at least 20%.
• The compensation amounts to a maximum of 90% of the wage cost.
• Employers must continue to pay 100% of the wages to the employees.
• The compensation initially applies for a period of three months, but can be extended once for another three months.
• The scheme applies to both permanent employees and employees with a flexible contract.
• Advance payment: on the basis of the application, the UWV provides an advance payment of at least 80% of the amount. Afterwards, the actual loss of turnover is to be determined.

As mentioned above, the scheme replaces the scheme for Working Time Reduction, WTV. However, companies that have already submitted an application for WTV to the Employee Insurance Agency (in Dutch: UWV) do not have to submit a new application. The application for WTV is automatically regarded as an application for the new scheme, the NOW.

Entrepreneurs and freelancers

Self-employed entrepreneurs and freelancers are entitled to a supplementary allowance. This actual scheme has yet to be designed, on which the government is working hard at the moment, and will be implemented by the municipalities.

The scheme will consist of two facilities:

1. Subsistence allowance up to the social minimum.
2. Loan for working capital to solve liquidity problems.

The facilities have the following characteristics:

• Depending on income and family composition, the subsistence allowance amounts to a maximum of 1,500 euros net.
• Period of income support for subsistence is three months.
• The income support does not have to be repaid.
  The maximum amount for the loan for working capital is 10,157 euros.
• Processing period of application will be four weeks (instead of currently 13 weeks).
• Advance payments are possible.

In addition, this support measure consists of a number of relaxations compared to the existing decree on support for self-employed persons (in Dutch: Besluit bijstandverlening zelfstandigen (Bbz)):

• No viability test of the enterprise or self-employment.
• No limitations because of available capital or partner income.

Liquidity measures

Deferral of payment of taxes

Entrepreneurs and freelancers who run into payment problems as a consequence of the Corona crisis can submit a request to the tax authorities for a special deferral of payment of VAT, wage tax, income tax, corporation tax. 
Once the request has been received, the Tax Office will immediately suspend collection. Deferral of payment is therefore granted immediately.
For the time being, no default fines for late payment (or they are reversed).
Individual assessment of the requests takes place afterwards, so entrepreneurs do not have to immediately include a statement from a third party expert with the request (as was previously foreseen). And finally, not unimportant, recovery interest and tax interest will be temporarily reduced from 4% to 0.01% from 23 March 2020.

Reduction of provisional assessments IB and Vpb

It is also possible for entrepreneurs to request a reduction of the provisional assessment for income tax and corporation tax, if they expect lower profits as a result of the Corona crisis. These requests will be granted, as a result of which less tax will have to be paid immediately. If the amount of the adjusted provisional assessment is lower than the amount already paid, a refund will follow.

Expansion Guarantee SME (GSME)

The government is proposing a temporary extension of the GSME scheme (in Dutch: BMKB regeling), so that companies with a healthy future perspective can continue to be financed. The guarantee, which is provided by the government, will be increased from 50% to 75%. Please note: the GSME is intended for companies with a maximum of 250 employees (FTEs) with an annual turnover of up to € 50 million or a balance sheet total of up to € 43 million. In order to make use of this, companies must turn directly to their bank.

Extension of the GO scheme

The GO scheme makes it easier for SMEs as well as for medium-sized and large companies to obtain bank loans and bank guarantees by means of a 50% guarantee from the Ministry of Economic Affairs. The GO scheme applied to financing starting at EUR 1.5 million with a ceiling of EUR 50 million per company. The ceiling is now increased to 150 million euros per company. In addition, the total budget made available by the Ministry for this purpose has been increased from 400 million euros to 1.5 billion euros. The extended GO scheme is to be further developed in cooperation with the European Commission.

Microcredits Qredits

Small business starters or entrepreneurs who have received financing from Qredits are entitled to a deferral of their repayment obligation for six months and an interest reduction to two percent during that period.

Guarantee SME-Agriculture loans (BL)

The SME-Agricultural Credit Guarantee Scheme (BL) will be temporarily extended to provide guarantees for working capital to alleviate possible liquidity problems of agricultural and horticultural businesses. The amended BL scheme will apply as of 18 March 2020.

Tourist tax

Many municipalities levy tourist tax of entrepreneurs in the leisure sector by means of a provisional assessment. Several municipalities are considering adjusting the collection of tourist tax to accommodate these entrepreneurs. However, the treatment of this taxation may differ from one municipality to another.