The current situation is changing rapidly. Our specialists are constantly working to keep up-to-date so that they can be of the best possible help to you. So, make sure you keep an eye on our website. Do you have any questions about any of these measures and want advice for your company? If so, contact your adviser at Visser & Visser or email firstname.lastname@example.org.
From March 27, the first emergency service points that entrepreneurs can use to apply for various forms of financial support are open. Find an update about the latest developments below.
Temporary Emergency Bridging Measure for Sustained Employment
Temporary Bridging Scheme for Independent Entrepeneurs
Contribution for Entrepreneurs in Affected Sectors scheme (TOGS)
The conditions that apply to this scheme are summarized below:
- The SBI code must be checked on the basis of the Chamber of Commerce (KvK) number;
- The company, which may not be a public enterprise, must have been entered in the Commercial Register;
- The company must have a physical establishment and, in the case of non-catering businesses, the business address must be different from the private address of the owner(s);
- The company must not be bankrupt and must not have applied to a court for a suspension of payments;
- The company’s expected drop in turnover must be at least € 4,000 over the period from March 16, 2020 to June 15, 2020;
- The company’s expected fixed costs must be at least € 4,000 over the period from March 16, 2020 to June 15, 2020, also after having taken advantage of other support measures made available by the government; and
- The company must have received no more than € 200,000 in state aid over the two preceding tax years.
The declarations relating to the expected drop in turnover and fixed costs are made by checking a box on the application form. However, if a false declaration is made in respect of either of these expected figures, the decision to award the contribution can be withdrawn within five years of the contribution being provided or the level of the contribution can be revised (Article 6). The contribution amounts to a one-off payment of € 4,000 per company and not per branch.
Tax consultant Wajid Hassan has written a blog focusing on this and two other schemes.
On March 17, the Government announced an emergency package. Wopke Hoekstra (Finance Minister), Erik Wiebes (Minister of Economic Affairs and Climate Policy) and Wouter Koolmees (Minister of Social Affairs and Employment) freed up tens of billions of euros to shield companies and employees in the Netherlands against the coronavirus crisis. The main measures are set out below.
Relaxation of tax payments and lowering of fines
- The application
The deferment application can only be submitted after you have received an (additional) assessment. Only one deferment application is required. The deferment then applies not only to existing tax debts, but also to additional tax debts arising over the following 3 months. This is obviously subject to the condition that the tax returns are submitted on time. If a 3-month deferment of payments is too short, it is possible to apply for a longer deferment in writing within this 3-month period. In this case further substantiation of the application is required and a declaration from a third-party expert, such as a financial advisor, must be enclosed. Entrepreneurs with a tax debt of less than € 20,000 can obtain a longer deferment immediately by sending documents evidencing a significant drop in turnover relative to previous months. A declaration from an expert is not required in this case. The Tax and Customs Administration will be publishing further information on this matter shortly.
The deferment applies to various types of tax: income tax, corporation tax, payroll tax and VAT, but also to gambling tax, excise duties, consumption tax on non-alcoholic drinks, insurance tax, the landlord levy, energy tax and other environmental taxes and comparable taxes in the Caribbean Netherlands.
- Notification of inability to pay
Example: A company does not pay the payroll tax due for February 2020 as a result of the coronavirus crisis. On April 24, 2020 the company receives the additional assessment. The company requests an exceptional deferment of payments in connection with the coronavirus crisis. This is regarded as notification of inability to pay. The notification is deemed to have been submitted in time not just for future periods, but also for the month of February.
- Tax interest
- Reducing your provisional assessment for 2020
Continuity contribution scheme for care providers
More information about the scheme and the conditions can be found in the following documents:
- Coronavirus crisis – Letter to care-provider organizations (in Dutch)
- Conditions (in Dutch)
For advice relating to this scheme please contact your advisor within Visser & Visser.
• Expansion of the Business Loan Guarantee Scheme (Garantie Ondernemingsfinanciering, GO)
• Interest rate reduction on Qredits microcredit for small business owners
• Temporary guarantee for agricultural and horticultural companies
• Consultation on tourist tax (central government/municipalities) and cultural sector
The details of many of these measures are still being worked out. For more information, please refer to the relevant web page of the Government of the Netherlands (in Dutch).
Scheme offered by banks
ABN, ING, Rabo, Triodos and Volksbank have jointly decided to offer companies the possibility of deferring their repayments. What we currently know about the application process is set out below for each bank. Generally speaking, companies applying for a deferment should essentially be in a healthy position and the scheme applies to loans of up to € 2.5 million. A tailor-made arrangement will often be required above this amount. You can discuss this with your bank’s account manager.
- Rabobank: More information is available on the website (in Dutch). Please note: Rabobank says that to defer repayments for March the application must have been submitted by 1 p.m. on March 30. If you submit your request later, the deferment will apply to repayment obligations from April onwards.
- ABN: ABN is granting deferments (April to September) automatically for all loans up to € 2.5 million. If you do not wish to take advantage of this, you must notify the bank by March 31. A tailor-made support measure will be considered for large corporate clients and loans above € 2.5 million. More information is available on the website (in Dutch).
- ING: ING is offering the possibility of reversing the last repayment and temporarily suspending the repayment obligation. Both applications can be made via Mijn ING Zakelijk.
- Triodos: Triodos is working hard on the details and will provide further information as soon as possible.
- Volksbank: Volksbank (SNS/ASN/RegioBank/BLGWonen) says that if you have any questions you should get in touch via your contact person at the bank.
Under this measure the government will partially guarantee a loan that a company wants to take out if it is unable to provide sufficient security to the lender (mainly banks). This allows you to borrow more as an entrepreneur.
The practical details and effect of this scheme differ from bank to bank. Please get in touch with your contact person at the bank.
Expansion of Corporate Finance Guarantee Scheme (Garantie Ondernemersfinanciering – GO facility)
Under the GO the government underwrites bank loans and bank guarantees at a level of 50%. The maximum amount per company has been temporarily increased to € 150 million. The cabinet ‘is committed to providing all the guarantees that are needed’.
Again, please get in touch with your contact person at the bank.
We are naturally happy to help, so if you have any questions please do not hesitate to contact your advisor at Visser & Visser.
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