Measures government for employment and businesses in corona-crisis

Measures government for employment and businesses in corona-crisis

Measures government for employment and businesses in corona-crisis

18 March, 2020

At March 17, the Dutch government presented a set of economic measures to respond to the economic impact of the coronavirus. The aim of these measures is to retain jobs and employment and to safeguard continuity of businesses, from large to small.

Mr. Wiebes, Dutch Minister of Economic Affairs and Climate Policy, Mr. Hoekstra, Dutch Minister of Finance and Mr. Koolmees, Dutch Minister of Social Affairs and Employment, promised financial support of tens of billions of euros, as long as necessary. This support is reflected in the following measures:

1. Temporary allowance labour costs

Businesses expecting a revenue loss of minimum 20% qualify for an allowance of labour costs. A temporary measure has been set up: Emergency Measure for Work Retention (Noodmaatregel Overbrugging voor Werkbehoud – NOW). This measure replaces the regulation for working time reduction. The allowance of labour costs is at maximum 90% of the total annual wage bill depending on the amount of lost turnover.

2. Support for self-employed persons

Self-employed people can get financial support in their livelihood for a period of three months. This means that their income will be complemented by the government up to the minimum social income. This support does not have to be repaid.

3. Deferral of taxes more flexible

Deferral of taxes can be requested more easily. The Dutch tax authorities (Belastingdienst) will stop the collection of taxes immediately after your request. This deferral applies to personal income tax, corporate income tax, value added tax (VAT) and payroll tax. Recovery interest will be temporarily lowered from 4% to almost 0%. This applies to all tax debts. In addition, the percentage of tax interest goes to nearly 0% as well.

4. Garantie Ondernemingsfinanciering widened

Through the Dutch Guarantee of Business Financing (‘Garantie Ondernemingsfinanciering’) the Dutch government supports businesses to obtain bank loans and bank guarantees. The Dutch government increases the total amount to be guaranteed from 400 million to 1.5 billion euros. The maximum guaranteed per entity is increased to 150 million euros.

5. Interest discount small entities on micro credits

To small businesses Qredits grants a defferal of repayment for a period of six months. Qredits automatically reduces the interest to 2% during this period.

6. Temporary guarantee agricultural and horticultural businesses

For agricultural and horticultural business there is arranged a temporary guarantee for working capital regarding the measure Borgstelling MKB-Landbouwkredieten. The Dutch government guarantees the credits of these businesses.

7. Consultation tourist tax and cultural industry

The Dutch government will consult the Dutch municipalities association to temporarily stop the payment of tourist taxes. Also, the government is entering into dialogue with the cultural industry about necessary measures, since this industry is locked down completely.

8. Compensation schemes affected industries

The government will present a compensation scheme with appropriate measures for companies in industries heavily affected by the corona-crisis, such as restaurants, cafes, travel agencies, etc.

We also refer to the official website of the Dutch government, on which updates are posted regularly.

We are ready to help you

Are you looking for a discussion partner with regard to the measures your company could take? Please contact your usual contact person or one of our recovery advisors:

Ronny Buiting | +31 (0)40 240 9415 | rbuiting@joanknecht.nl

Frank Driessen | +31 (0)40 240 9438 | fdriessen@joanknecht.nl



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