After the measures previously taken to combat the corona crisis, the cabinet is now presenting an emergency package of special measures. This emergency package is provisionally valid for a period of three months and consists of three main elements:
- an emergency package of jobs and the economy;
- the establishment of an emergency counter;
- liquidity support.
The current working time reduction scheme has been withdrawn with immediate effect. The scheme is replaced by a Temporary emergency measure bridging for work retention (NOW) .
This scheme makes it possible to finance more employers more quickly than was possible under the withdrawn scheme. The emergency measure applies to all companies, regardless of their size. The application process is separate from the unemployment benefit scheme. As a result, employees do not lose unemployment benefits.
Employers with an expected loss of turnover of at least 20% can apply to the UWV for a contribution towards wages up to a maximum of 90% of the wage bill. The employer pays the wages of the employees involved in full. The allowance applies for a period of three months. This period can be extended once by three months. Additional conditions will be imposed on renewal. The scheme targets turnover decreases from 1 March 2020.
Applications for working time reduction already submitted are considered applications for the new scheme. The condition for the application is that the employer will not apply for dismissal for economic reasons for his employees during the period for which the allowance is received. The scheme covers not only the wages of permanent employees but also of employees with a flexible contract insofar as they remain employed during the application period. The UWV will provide an advance based on the application. It is subsequently determined what the actual loss in turnover was. A correction may be made in the final determination of the compensation. It is not yet known from which date applications can be submitted.
There will be a temporary provision for three months for self-employed entrepreneurs (self-employed persons and sole proprietors) with financial problems. The provision consists of an additional living allowance and a working capital loan. The living allowance supplements the income to the social minimum. The viability test of the Self-Employment Assistance Decree is not applied to enable fast processing of applications.
The level of income support depends on the income and the composition of the household. This amounts to a maximum of approximately € 1,500 per month net. This support is non-refundable.
The accelerated procedure also applies to applications for a working capital loan of up to € 10,157. Postponement of the repayment obligation is possible. Lower interest rates will also be applied.
Applications can be submitted online via the municipality orr by visiting the site https://www.155.nl/.
As of March 23, 2020, the counters are only open by appointment. You will then automatically be referred to the relevant municipality where you can submit the application online.
Please note that some sites use the already existing scheme and are therefore not focused on the current measures. Submitting the financial documents can therefore be omitted if not in possession. The municipality will contact you by telephone regarding additional information.
You can further explain your personal situation and need in the explanation section.
The high unemployment insurance premium for flexible contracts does not apply to permanent employees who have worked overtime by more than 30% due to the corona virus in a calendar year. The Minister of Social Affairs and Employment will elaborate this amendment to the law for calendar year 2020 as soon as possible. The postponement given to employers to put down a permanent employment contract in writing is extended until July 1. The leniency scheme to apply the low unemployment rate for employees who were employed indefinitely on December 31, 2019 will also be extended until June 30, 2020.
There will be an emergency counter where entrepreneurs can request a donation for the first emergency. This gift applies to entrepreneurs who have been directly taken by government measures to combat the corona crisis and who therefore lose a large part of their turnover. The allowance and conditions have yet to be worked out. It concerns a one-off lump sum of € 4,000 for the three-month period.
Postponement of payment of taxes
It was previously announced that the Tax and Customs Administration would grant special deferral of payment to all entrepreneurs who have been or will be in liquidity problems as a result of the corona crisis. The tax authorities grant the postponement immediately after the request has been received. Individual assessment of the request will take place later.
In the near future, the Tax and Customs Administration will not impose a default penalty for failure to pay tax (on time). Requests for deferment of payments must be handled manually, so that processing times can increase if many requests are received.
The taxation of the energy tax and the Sustainable Energy Storage (ODE) for companies in the second, third and fourth tax bracket will be temporarily postponed. The cabinet is investigating how this can be designed.
Recovery interest and tax interest
The recovery interest will be temporarily reduced from 4% to 0.01% from March 23, 2020. This reduction applies to all tax debts. The tax rate also temporarily drops from 8% for corporation tax and 4% for other taxes to 0.01%. This reduction will take effect on June 1, 2020. The temporary reduction of the tax rate in income tax will take effect on July 1, 2020.
Entrepreneurs who expect a lower profit due to the corona crisis can request a reduction of the provisional assessment. These requests will be granted by the Tax Authorities.
The State Secretary for Economic Affairs and Climate has temporarily expanded the BMKB to mitigate the liquidity risks associated with the corona virus, so that companies with a healthy future perspective can continue to be financed. The scheme means that the government guarantees part of the loan if companies cannot provide enough security. The easing means that the guarantee will increase from 50% to 75% of the credit. This measure is intended for a bridging loan or an increase in a overdraft with a maximum term of two years. A number of other conditions in the regulation have also been relaxed. Registration is possible from Monday, March 16, 2020. Entrepreneurs who want to qualify for the scheme can register with their bank or lender.
The GO scheme has a 50% guarantee on bank loans and bank guarantees from € 1.5 million to a maximum of € 50 million per company. The GO's guarantee budget is increased from € 400 million to € 1.5 billion. The maximum per company is increased to € 150 million. The easings will be effected within a week.
Qredits is a social lender for companies. The cabinet is prepared to support Qredits financially with € 6 million for a nine-month term. The support is used to defer the repayment obligation for a maximum of six months and an interest discount over this period. The allowance only applies to corona-related applications.