COVID-19: extended and new schemes for businesses

COVID-19: extended and new schemes for businesses

COVID 19 extended and new schemes for businesses

The Dutch government has recently presented its Emergency Package 2.0, which is designed to help companies through the corona crisis. The package extends existing compensation schemes and offers a new scheme for heavily affected sectors. What does this mean for your business? While not all schemes have been fully fleshed out at this point, we would still like to give you a run-down of the most important new aspects.

Extension of existing schemes

  • Temporary Emergency Bridging Measure for Sustained Employment (Dutch acronym: NOW): extended until 1 October 2020
  • Temporary Bridging Measure for Self-Employed Professionals (Dutch acronym: TOZO): extended until 1 October 2020, subject to new conditions
  • Reduction in interest on tax due and late payment interest: in effect until 1 October 2020
  • Corona loans: extension of business loan guarantees (under the BMKB, GO, KKC, DOL and Qredits schemes)

New conditions governing NOW

NOW 2.0 is subject to new conditions. Businesses seeking to qualify for the NOW scheme that are looking to lay off more than 20 employees cannot let these employees go until they have reached agreement with a trade union or another employee representation body. If they have not reached agreement, their grant will be cut by 5%.

Please note that the NOW scheme is unrelated to employment law protection and the rules for group redundancies. The existing extra 50% reduction that is applied to redundancies for economic reasons will be been abandoned in the NOW scheme.

New: Compensation of Fixed Costs for SMEs

The Dutch government also offers a new scheme for reimbursing SMEs for fixed costs (Dutch acronym: TVL). This scheme is designed for businesses operating in sectors affected by COVID-19 as defined in the TOGS scheme. These include the hospitality industry, the leisure sector, the events industry, the fairground industry, performing arts and theatres. Businesses operating in these sectors in particular will qualify for a tax-free allowance on top of their NOW payment to cover their fixed costs. Please note that the compensation from the fixed costs for SMEs is regarded as turnover for the NOW scheme.

The payment depends on the level of fixed costs and the proportionate drop in revenue (at least 30%). It has been capped at € 50,000 for the period from 1 June to 1 October.

New: ‘The Netherlands keeps learning’

The government will also facilitate free online retraining, reskilling and career development services for everyone affected by the health crisis. This scheme will be open to you as a business owner, your employees, flexworkers and self-employed persons. Exact details on this scheme have yet to be announced.

How can we help?

Please do not hesitate to contact your acconavm adviser if you have any questions about corona-related issues in your organisation or are interested in other business advisory services. Alternatively, you can send an email to international@acconavm.nl. We are here for you.

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