23 March 2020 Add expertise tag Add service tag Add country tag

In response to the COVID-19 outbreak and the increasing spread of the virus throughout the Netherlands, the Dutch Government has announced a package of measures to support businesses that are impacted by the Corona crisis.

The announced measures provide economic and employment support. The Dutch Government has repeatedly stated that entrepreneurs and businesses will be supported during the Corona crisis and that more measures will be introduced when needed.

Sofar, the following support measures haven been announced: 

Temporary wage costs compensation

The Government provides financial support to employers in paying their employees’ wages for both permanent and flexible contract employees.

Companies that expect a turnover loss of at least 20% due to the COVID-19 outbreak can claim the financial support for a maximum period of three months, with a possible extension of three months.

The Dutch Government will provide aid for a maximum of 90% of the wages in case of a 100% turnover loss, a 45% compensation in case of 50% turnover loss and a 22.5% compensation in case of a turnover loss of 25%. During the application of this measure the employer is not allowed to dismiss employees on economic grounds.

It is not yet possible to apply for this measure as the registration and application tools are not yet available. It it is however already known that this will have to be done through the Dutch Employment Board (UWV). The measure can be granted with retroactive effect as from 1 March 2020.

Temporary support for self-employed professionals

Self-employed persons without personelle (in Dutch: zzp’ers) that are experiencing financial difficulties due to the COVID-19 outbreak can claim extra temporary financial support from the Dutch Government.

This support consists of income support with a maximum of € 1,500 net, and a loan with a maximum of € 10,157. The exact amount of the income support depends on the income and household situation.

This income support does not have to be repaid, and there is no equity or partner test. The loan may be taken out for business capital to a maximum amount of € 10,157. This loan has to be repaid, however, a delay for the repayment may be requested and the interest rate will be lower than the normal interest rate for these loans.

This measure also has retroactive effect to March 1, 2020 and lasts at least until June 1, 2020. The support can be applied for at the local municipality for a maximum period of three months.

Deferral of tax payments

Entrepreneurs (including ZZPs) may request extension of payment for personal income tax, corporate tax, payroll tax and VAT due. The payment extension will be granted for at least three months with fines for late payment being suspended. 

Also, if the entrepreneur expects a lower profit for 2020 due to the COVID-19 outbreak and they have received a preliminary assessment for 2020 with a payable amount, a reduction of this tax assessment may be applied for with immediate effect.

SME loan guarantee scheme

The SME loan guarantee scheme has been extended due to the Corona virus outbreak. SMEs (companies with less than 250 employees) can use the SME loan guarantee scheme for bridge loans or to increase the amount allowed to be in the ‘red’ on their current account with banks.

The Ministry of Economic Affairs stands as guarantor for up to 75% of the loan. When applying for a loan at one of the participating banks or other funders, the financial institution will submit the application for the SME credit guarantee scheme to the Netherlands Enterprise Agency.

Business loan guarantee scheme

The existing business loan guarantee scheme that applies to medium and large-sized companies is temporarily adjusted so companies can take out larger loans, up to an amount of € 150 million.

The Dutch Government provides for a maximum 50% guarantee for the loan, which may have a maximum term of 8 years. When applying for a loan at one of the participating banks or other funders, the financial institutions will submit the application for the business loan scheme to the Netherlands Enterprise Agency.

Other measures

The following other measures have been announced: 

  • Entrepreneurs that have a loan from "Qredits" (social loan provider fund) do not have to repay the loan for a period of 6 months and the interest will be reduced to 2% in this period.
  • For entrepreneurs in the hospitality, travel and event organization sectors the Government proposes to award a fixed compensation of € 4,000. The terms for this compensation are yet to be announced.
  • The collection interest rate for paying taxes after the payment term has passed will be decreased from 4% to 0%. This applies to all tax debts. Also the tax interest for corporate income tax of 8% and other taxed of 4% is decreased to 0%.
  • The major Dutch Banks (like ABN AMRO, ING and RABO) have announced the possibility for indebted companies to obtain extension for the repayment of loans and interest for a maximum period of six months. The exact conditions for obtaining this extension can vary per bank.

How can we be of service ?

We can advise you on the measures which may apply to your situation, the feasibility of making an application in this respect, and the filing of the necessary applications.

If necessary, we can also support the preparation of interim financial statements, income overviews, etc.

If you are interested in our services, you can contact us via e-mail or call us at our office in Amsterdam at + 31 20 570 9440 or our office in Rotterdam at + 31 10 2010 466. 

We gladly make time for you !