The Dutch cabinet has decided to take exceptional economic measures because of the corona virus. The aim is to protect jobs and incomes in addition to the people’s health and to absorb the consequences for self-employed professionals, SME entrepreneurs and large companies. This package provides billions of euros in support every month for as long as it takes. The measures ensure that companies can continue to pay their staff, bridge the gap for self-employed workers, and allow relaxed money arrangements, compensation and additional credit facilities to keep money in companies.

Ministers and state secretaries of Economic Affairs and Climate (EZK), Finance and the Minister of Social Affairs and Employment (SZW) announced the package to the House of Representatives on Tuesday, in addition to economic measures that were already taken by the cabinet on Thursday 12 March.

The ministers jointly state: “In the first place, it is essential that every Dutch citizen always follows health decisions and advice. At the same time, these measures have a major impact on entrepreneurs of all sizes, in all sectors. We are not leaving them alone. they receive extra support in the new package, and the cabinet also simplifies access and relaxes conditions, so that staff and self-employed people keep their work as much as possible.

“The Cabinet is following the situation closely and is in constant contact with business organizations, social partners and banks. Sound government finances and budgetary agreements ensure that the government will not have to make cutbacks as a result of this package. It is decided to increase the national debt, that is possible, because the debt has been brought down in good times.

The measurements: 

1. Establish temporary arrangement for compensation for wage costs (Ministry of Social Affairs and Employment)

An entrepreneur who expects a loss of turnover (at least 20%) can apply to the UWV for a salary contribution for a period of three months (maximum 90% of the wage bill, depending on the loss of turnover). UWV will provide an advance of 80% of the requested contribution. This allows companies to continue to pay their staff. The condition is that no staff may be made redundant for economic reasons during the subsidy period. This Temporary Emergency Measure Bridging for Work Retention (NOW) will be opened as soon as possible and will replace the current working time reduction scheme. No new applications can immediately be submitted for this to the Ministry of Social Affairs and Employment. Applications that have already been made but not yet settled will be handled in the new scheme. Entrepreneurs can apply for the allowance for a decrease in turnover from 1 March.

2. Extra support for independent entrepreneurs (Ministry of Social Affairs and Employment and municipalities)

The cabinet is introducing a temporary, relaxed arrangement to support independent entrepreneurs, including self-employed persons, so that they can continue their business. The scheme is implemented by municipalities. Self-employed persons can receive additional income support for subsistence for a period of three months through an accelerated procedure. This supplements the income to the social minimum and does not have to be repaid. There is no asset or partner test in this temporary assistance scheme for self-employed entrepreneurs. Support under this temporary scheme is also possible in the form of a working capital loan at a reduced interest rate.

3. Relaxation of deferral of payment of tax and reduction of fines (Tax and Customs Administration)

Affected entrepreneurs can more easily apply for a deferment of tax. The Tax Authorities will then immediately stop the collections. This applies to income, corporate, wage and turnover taxes (VAT). Any default penalties for late payment do not have to be paid. Moreover, it is not necessary to send evidence immediately. The entrepreneur gets longer to do this. The recovery interest that normally starts after the expiry of the payment term is temporarily reduced from 4% to almost 0%. This applies to all tax debts. The rate of the tax interest also temporarily goes 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. Broadening of the Guarantee for Entrepreneurial Financing (Ministry of Economic Affairs and Climate)

Businesses that experience problems in obtaining bank loans and bank guarantees can use the Guarantee Business Financing scheme (GO). The government proposes to increase the GO’s guarantee ceiling from 400 million to 1.5 billion euros. With the GO, the Ministry of Economic Affairs and Climate 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 is committed to providing all warranty space that is required.

5. Interest discount small entrepreneurs on microcredits Qredits (Ministry of Economic Affairs and Climate)

Microcredit provider Qredits finances and coaches a large group of small and starting entrepreneurs, who often find it difficult to obtain financing through the bank. These include entrepreneurs in the catering, retail, personal care, construction and business services. Qredits opens a temporary crisis measure: for small entrepreneurs affected by the corona issue, a repayment of six months is offered and the interest during this period is automatically reduced to 2%. The Cabinet supports Qredits for this measure with a maximum of 6 million euros.

6. Temporary guarantee for agricultural and horticultural companies (Ministry of Agriculture, Nature and Food Quality)

For agricultural and horticultural companies, a temporary guarantee for working capital will be provided under the Guarantee for SME Agricultural Credits (BL) scheme. In this way, the cabinet guarantees the credits of agricultural entrepreneurs. The adjusted BL scheme will apply from March 18, 2020.

7. Consultation on tourist tax (central government / municipalities) and culture sector

In consultation with the Association of Dutch Municipalities (VNG), the Cabinet is discussing the possibility of ending (provisional) local taxes on entrepreneurs and withdrawing already imposed assessments on companies. This particularly concerns the tourist tax. The government is also in consultation with the culture sector to be able to link up with generic measures and any specialization if necessary.

8. Compensation scheme for affected sectors (Ministry of Economic Affairs and Climate)

The government’s health measures have enormous consequences for income in a number of sectors in particular. Such as the (mandatory) closure of food and beverage outlets and cancellations in the travel industry. Moreover, this income is difficult to catch up when the coronavirus is over. The Cabinet is therefore coming up with a compensation scheme with appropriate measures for companies in the aforementioned sectors. This is now being worked out and urgently submitted to the European Commission for the assessment of (permissible) state aid.

Where can entrepreneurs go?

Banks can submit applications for the extended credit schemes (BMKB and GO) to the Netherlands Enterprise Agency, the implementing organization of the Ministry of Economic Affairs and Climate. Entrepreneurs report this to their lender. Entrepreneurs can contact the Dutch Tax and Customs Administration for tax measures via Belastingdienst.nl/coronavirus. The schemes of the Ministry of Social Affairs and Employment will be opened as soon as possible.

For other questions about the coronavirus, companies can check Rijksoverheid.nl/coronavirus or RIVM. Or go to the website of the Chamber of Commerce (KvK) . Can’t find the answer to your question? Then call the advisory team on 0800 – 2117.