Last week, the goverment announced the new emergency package for jobs and the economy. It contains the following measures.
Meeting the fixed costs of SMEs
Entrepreneurs who previously benefited from the TOGS scheme can receive a tax-free allowance to cover their fixed tangible costs.
An allowance for fixed costs can be obtained for the next three months up to a maximum of EUR 20,000, depending on the size of the company, the level of fixed costs and the degree of loss of turnover (minimum 30 percent).
Scheme for compensation for wage costs (NOW)
The NOW scheme will be prolonged. As of 6 July, entrepreneurs who expect at least 20% loss of turnover can submit a new application for the period June, July and August. A number of changes will be made to the NOW scheme:
- The fixed surcharge on labour costs will be increased from 30% to 40%. This means that the contribution can also be used for other costs.
- The reference month for the wage amount will be March 2020. This also applies to the NOW scheme already in force, if the wage amount in the months of March, April and May exceeds the one in the period January, February and March.
- Companies making use of the NOW scheme may not distribute profits to the shareholders, may not pay bonuses to the board and management, and may not repurchase their own shares.
- The correction to the subsidy in the event of dismissal will remain, but will no longer be further reduced in the event of dismissal for economic reasons.
- Employers applying for the NOW will be obliged to encourage their employees to undergo further training and retraining.
The social partners will offer online training and development advice free of charge through the
‘NL leert’ crisis programme.
Conditions for extended bridging scheme for self-employed persons (TOZO)
The TOZO scheme will be extended until the end of August 2020. Unlike the current scheme, the extended scheme contains a partner income test. As a result of this test, only households with an income below the social minimum can receive an allowance.
Self-employed persons can also apply for a loan for working capital (up to a maximum of EUR 10,157) at a reduced interest rate. In order to apply for a loan, the self-employed must declare that their business is not subject to a moratorium or a state of bankruptcy.
Prolongation of tax measures
The period during which entrepreneurs can apply for a tax deferral has been prolonged until 1 September 2020. Any penalties for failure to pay on time do not have to be paid. Entrepreneurs will immediately receive three months deferment of payment upon the first application. If entrepreneurs wish to apply for a longer period of deferment, they must declare that they will not pay out dividend/bonuses and will not repurchase their own shares.
The tax interest and collection interest for all taxes are reduced to 0.01% until 1 October 2020.
The measures relating to the relaxation of the hour criterion and the payment break for mortgage obligations will also be prolonged until 1 September 2020.