The second package of measures to support entrepreneurs will come into force in June
From June 1, entrepreneurs in the Netherlands will receive additional support from the government. This time, 1 new measure and a whole package of amendments to the current, already adopted, support measures are envisaged.
What amendments are provided for in the second package of support measures
Assistance program for SMEs (successor of the program TOGS)
A new assistance program (TVL) will replace TOGS in mid-June. It is aimed at those entrepreneurs whose turnover has decreased by more than 30%. For them, compensation for fixed costs is provided in the amount of up to 20,000 euros for 3 months (excluding salary costs). 1 billion euros have been allocated for the new program. TVL will start operating from June 15th and will be active until August 31st.
Program Tozo 1 becomes Tozo 2 and active until the end of August
We remind you that Tozo is a temporary support measure for individual entrepreneurs, introduced during the coronavirus crisis. In general, the conditions of Tozo 1 and Tozo 2 are almost identical. The main difference is that in Tozo 2, the spouse's income is taken into account when calculating the cash payment. The Tozo 2 program is valid until August 31, and you can apply through your local municipality.
Program NOW extended, layoff penalties removed
The NOW program is also being extended for the summer period. The new version is somewhat different from its predecessor, namely:
- Dismissal penalty is canceled. Consequently, companies that receive NOW-2 will not be penalized for dismissal of employees for economic reasons
- Since this could lead to massive layoffs, the government is allocating 50 million euros for retraining the workforce: from July, online training will begin for the laid-off employees. But if the employer is going to lay off more than 20 employees, trade unions may intervene in the process.
- Companies receiving NOW 2.0 do not receive any further downgrades to their NOW subsidies if they have a compelling economic reason to cut staff. Now the NOW package includes, in addition to salary costs, compensation for other costs.
- The main month for calculating wage compensation is March. According to the current amendments to NOW, March is the starting point even if the salary in March-May was higher than in January-February, which is very important for companies in whose activities there is a seasonality.
- Companies that have taken advantage of the NOW program in 2020 will not be able to pay out profit to shareholders, bonuses to management and buy back their own shares.
Deferred tax payment extended until September 1
The Ministry of Taxes and Duties is extending the grace period until September 1. Fines for late payment of taxes will not be levied, and annuities and penalties on all tax charges have been reduced to 0,01% by October 1, 2020. Other tax support measures from the first aid package (revision of the hourly wage criterion and mortgage credit holidays) have also been extended until September 1, 2020.
When contacting the tax authority, an immediate 3-month deferral of payments is provided (it is also possible to request a deferral for a longer period). For a longer deferral, an official notification is required that the entrepreneur does not plan to pay bonuses, dividends and buy back his shares.
Concessional lending and other guarantees for entrepreneurs remain
Concessional lending (for a long term and in large volumes) and other financial guarantees for SMEs and startups will be extended. The second package of support measures provides 150 million euros for the emergency lending program for startups. The first package totaled 100 million euros, but a large number of applications from entrepreneurs forced the government to increase support to 150 million euros.
Support measures for part-time workers are still under discussion
The government has not yet taken measures to support part-time workers (in part). Support schemes have already been developed, however, according to the government, they have serious shortcomings. Details will be discussed during bilateral consultations with the House of Representatives.
Publication Date: 25.05.2020
