A number of regulations were announced by the Dutch cabinet on 17 March 2020 for entrepreneurs affected by the Coronavirus crisis.
Emergency funding for wage cost compensation
Employers who have suffered losses and are looking for financial support in order to pay permanent employees’ wages can now take advantage of the Employment Bridging Emergency Funds (NOW). This replaces the short-time working scheme.
Compensation as stipulated in the NOW makes it possible for employees to be paid, whether they have a permanent or a flexible contract. Businesses may request this compensation for loss of turnover from 1 March 2020 from the Employment Insurance Agency Netherlands (UWV).
For further information on this emergency funding and guidance on requesting financial support, please contact:
Thessa van Zoeren
T +31 6 10 95 89 29.
Mitigating tax measures
Entrepreneurs affected by the crisis can request a payment extension from the Dutch Tax Administration, which can put a hold on any measures in place to collect payment immediately. This applies to income, corporate, wage and turnover taxes (VAT). Affected businesses will be exempted from any default penalty payments.
For further information on these tax measures contact:
T +31 6 205 205 90
SME Credit Guarantee Scheme (BMKB) and Business Loan Guarantee Scheme (GO)
The Business Loan Guarantee Scheme (GO) has been extended to assist businesses having difficulty obtaining a loan or bank guarantee. This allows businesses to obtain a government guarantee of 50% on loans from banks and bank guarantees of between EUR1.5m and EUR150m per business.
Temporary broadening of current account credit or bridge financing is also available for businesses foreseeing liquidity problems. The SME Credit Guarantee Scheme (BMKB) is a guarantee scheme provided by the government which enables businesses to strengthen their financial capacity.
For further information on financing and application of the GO regulation or the BMKB, contact:
T +31 6 10 03 06 78.
Extra support for self-employed professionals
A further provision, available for at least three months, will provide self-employed professionals with additional income and livelihood support. This will supplement income to a social minimum. As part of this temporary measure, it will also be possible to obtain a business capital loan at a reduced interest rate. These measures are designed to enable self-employed professionals to continue in business and are available via local municipalities.
Other Coronavirus crisis provisions and measures
The government has announced various other provisions and measures aimed at ensuring that business will be able to continue and that jobs are retained. Many municipalities have also taken specific measures, for example, in relation to tax payment extensions, but these vary by municipality.
For further guidance on how any of these provisions can be applied in the best possible way, contact:
T +31 6 205 205 90
Date: March 2020