New and additional economic measures by the Dutch Government
Coronavirus prevention measures has led to a significant loss of turnover for many businesses. The Dutch government has announced new and additional economic measures until 1 October 2020 to help businesses during these difficult times. Below are some of the measures being taken by the Dutch government:
NOW 2.0: From 6 July, employers with more than 20% turnover loss apply for the Temporary Emergency Bridging Emergency Fund (Tijdelijke Noodmaatregel Overbrugging voor Werkbehoud NOW) for continuous employment. Please see our full article about NOW 2.0 which also can be found on our website.
TVL: The Reimbursement Fixed Costs Scheme for Small and Medium-sized enterprises (Tegemoetkoming Vaste Lasten mkb, TVL) aims to compensate selected SMEs for fixed costs other than wage costs and replaces the TOGS measure (already closed on June 26th). This reimbursement is meant for SMEs that have suffered a turnover loss of more than 30% and supports them to pay their fixed costs for the months of June, July, August and September 2020. The amount of fixed costs must be at least €4,000 and at most 50% of the fixed costs will be reimbursed. Applying is possible from 30 June through 30 October 2020.
The Dutch Tax Authorities has implemented a number of measures to help businesses and employers who are having difficulties with payments due to the corona crisis. Please see below list of measures for businesses in general until October 1st;
- Businesses can apply for payment extensions for taxes, you can apply for a payment extension of three months for all your income tax, corporate tax, payroll tax, and turnover tax (VAT) assessments at once;
- The interest rate on tax and tax collection will remain close to zero instead of 4%;
- The Tax Authorities will not impose fines for late payments;
- The relaxation of the hours criterion, some tax deduction schemes such as private business ownership allowance, require a minimum number of hours spent working in a company per year, if the required hours can’t be met due to the corona crisis the Tax Authorities will relax the rules as much as possible;
- The Tax Authorities will allow businesses to deduct losses from their profits in the 2019 corporate tax return;
- Customary salary for DGA’s lowered, as a director or major shareholder (DGA) in your company, you have to meet a so-called customary salary (‘gebruikelijk loon’), over which your levies payroll taxes are paid. For 2020, it will be possible to lower your customary salary proportionate to your company’s turnover loss. This means you will have to levy less payroll tax.
- Measures to ensure low unemployment benefit premiums
- Payroll taxes and travel allowance rules eased
- Extension of discretionary scope work-related cost scheme (werkkostenregeling, WKR) from 1.7% to 3% for wages of up to €400,000
If you have any questions or would like to receive more information, please feel free to contact our office at +31 (0) 85 0187471 or via firstname.lastname@example.org.