The extension of these support packages mean that businesses are able to apply for one of the government’s financial support packages (NOW, TVL, TOZO or TONK), however due to lockdown restrictions being lifted, the government has slightly adjusted the conditions of some of the schemes.
NOW (Temporary Emergency Scheme for Job Retention)
Businesses can continue to receive an allowance to cover the cost of employee wages, however instead of being reimbursed for 100% of those costs, businesses will only receive an allowance to cover 80% of wages. The new reference month for NOW grants will be February 2021.
TVL (Fixed Costs Grant Scheme)
The conditions for this scheme remain unchanged. In a bid to further support start-ups, growing businesses and businesses that got into difficulties as a result of the standard reference period for calculating a TVL grant, they have been able to choose between two reference periods since the start of the second quarter. Additionally, the TVL grant ceiling for large businesses will be raised to €1.2 million for the second quarter.
TOZO (Self-employment Income Support and Loan Scheme)
In the third quarter, TOZO will focus more on supporting and encouraging businesses in order for them to get back on their own feet as soon as possible. The repayment of TOZO working capital loans has been deferred by six months to 1 January 2022. Until that date, no interest will be charged. The loan term has also been extended from 42 to 60 months. The Minister of Social Affairs and Employment has asked the parties concerned to apply this scheme generously, give it more publicity and extend its reach.
TONK (Temporary Support Scheme for Necessary Costs)
The conditions for this scheme remain unchanged.
Despite the above extensions, the government has announced that the support will no longer be available after 1 October 2021 as the economic outlook continues to improve across the country.
Businesses can further defer their tax debt payment incurred as a result of the pandemic. Instead of the original repayment period of three years beginning October 2021, businesses now have five years to make the repayment, starting from October 2022. Despite this, businesses are expected to commence making normal tax payments again in July 2021.
In addition, the interest rate for late tax payments is also being relaxed. Last payment interest is to be set at 1% instead of 4% as of 1 January 2022, it will then be raised in stages until it returns to 4% in January 2024.
For more information on coronavirus support measures for employers and employees, visit the activpayroll latest news page.
For more information on the Dutch tax and payroll landscape, browse activpayroll’s Global Insight Guide to the Netherlands.