The government has taken a number of measures to mitigate the economic impact of the coronavirus.
Deferral of payment of income, corporation, wage taxes and VAT
Under circumstances, it is possible to obtain a deferment of payment for assessments relating to the above taxes. For this, a written request must be made to the tax authorities. This request immediately suspends the collection of the assessment.
The request must be accompanied by a statement from a third party expert (e.g. accountant, financier, tax lawyer) showing the following:
- there are existing payment problems and, for example, no payment problems to be expected;
- the payment problems are of a temporary nature as a result of the coronavirus;
- the company is viable.
It is therefore important to provide an overview of available liquidity, foreseeable revenues in the coming period and foreseeable expenditure.
An assessment of the request will be made at a later stage. It is important to realise that the letter suspends recovery, but that it is possible afterwards that the request will not be approved and a default penalty will be due.
Provisional corporate and income tax assessments
If (due to the coronavirus) the results for 2020 appear to be lower than previously expected, it may be advisable to reduce the provisional corporate or income tax assessments and thus reduce the pressure on the outgoing cash flow.
Reduced working hours
If there is too little or no more work for the staff, the (current) working time reduction scheme can be invoked. This can be invoked if a company has a temporary loss of working hours due to a calamity. This calamity must result in a loss of work for at least 2 weeks and a maximum of 24 weeks and there must be no more work for at least 20% of the personnel. That part of the personnel may be eligible for WW benefit. A condition is, however, that the employees concerned have accrued WW entitlements. If the Ministry grants permission for the reduction of working hours, the personnel will have to continue to be paid as usual, but compensation can be obtained from the UWV for the non-worked hours on the basis of the WW rules.
It is best to coordinate an application with the person responsible for your payroll administration.
Assistance for self-employed persons
As self-employed persons are not employees, they cannot benefit from the working time reduction scheme. They may, however, be able to appeal to the Besluit bijstandverlening zelfstandigen 2004 (Self-employed Persons Assistance Decree 2004). If you, as a self-employed person, wish to make use of this scheme, you must contact the municipality in which you are registered.
Extended guarantee scheme
The government has decided to extend the SME guarantee scheme with effect from Monday 16 March. This scheme provides a state guarantee for financing of SME entrepreneurs. The extension means that 75% instead of 50% of the loan will be eligible for the Guarantee Scheme. The government then guarantees 90% of that amount. The scheme also applies to bridging loans and overdraft facilities with a term of up to 2 years.
If we can assist you with the above actions, please contact your contact person within our office.