Did you know that the Dutch Government has implemented some support measures for small and large entrepreneurs affected by the coronavirus phenomenon?
I invite you to review the following information that may be of benefit to your company. The government has implemented benefits in terms of deferment of payments for the declaration of VAT and income, as well as implementing interest discounts on business loans, among others.
a) Dutch Government
The cabinet has decided to take exceptional economic measures due to the corona virus. The goal is to protect our jobs and income as well as our health and absorb the consequences for self-employed professionals, SMEs and large companies. This package
provides billions of euros of support each month for as long as needed. The measures ensure that companies can continue to pay their staff, close the gap for freelancers, and allow money to stay with companies through relaxed tax regimes, compensation and additional credit facilities.
The measurements are:
1. Establish a temporary agreement for compensation of salary costs (Ministry of Social Affairs and Employment)
An entrepreneur expecting a loss of turnover (at least 20%) can request a salary contribution from the UWV (www.UWV.nl) for a period of three months (maximum 90% of the salary bill, depending on the loss of turnover) . UWV will provide an advance of 80% of the requested contribution. This allows companies to continue paying their staff. The condition is that no staff member can be fired for financial reasons during the subsidy period. This Temporary Emergency Work Retention Measure (NOW) will be opened as soon as possible and will replace the current work time reduction scheme. New requests for this cannot be sent immediately to SZW. Applications that have already been made, but have not yet been resolved will be handled in the new schema. Employers can request the allowance for a decrease in billing from March 1.
2. Additional support for independent entrepreneurs (Ministry of Social Affairs and Employment and municipalities)
The cabinet is introducing a temporary and relaxed agreement to support independent entrepreneurs, including self-employed people, so they can continue their businesses. The scheme is implemented by the municipalities. Self-employed individuals can receive additional maintenance income for a period of 3 months through an expedited procedure. This complements the income to the social minimum and does not have to be returned. There is no proof of asset or partner in this temporary assistance scheme for independent workers. Support under this time frame is also possible in the form of a working capital loan at a reduced interest rate.
3. Postponement of tax payment and reduction of fines (Tax and Customs Administration)
Affected entrepreneurs can more easily request a tax deferral. The Tax Authorities will then immediately stop the collections. This applies to income, corporate, salary and billing taxes (VAT). There is no penalty for late payment. Also, there is no need to submit evidence immediately. The entrepreneur takes longer to do this. Recovery interest that normally begins after the payment term expires is temporarily reduced from 4% to almost 0%. This applies to all tax debts. The tax interest rate also temporarily drops to almost 0%. This reduction will apply to all taxes subject to tax interest. The cabinet will adjust the tax rate as soon as possible.
4. Extension of the Business Financing Guarantee (Ministry of EZK)
Companies that have trouble obtaining bank loans and bank guarantees can use the Commercial Financing Guarantee (GO) scheme. The government proposes to increase the GO guarantee limit from € 400 million to € 1.5 billion. With the GO, EZK 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 cabinet agrees to provide all required warranty space.
5. Discount of interest to small entrepreneurs in microcredits Qredits (Ministry of EZK)
Microcredit provider Qredits finances and trains a large group of small and novice entrepreneurs, who often find it difficult to obtain financing through the bank. These include entrepreneurs in the serv