Newsletter July 2020 THE NETHERLANDS
The second Dutch support package of € 13 billion: what is changing? Publicatiedatum: 26-5-2020
The second support package intended to help entrepreneurs deal with the coronavirus crisis was announced by the Dutch Government on Wednesday, 20 May. This largely extends the measures for a further three months (from June to August). What changes will the new package introduce? There will now be more compensation available for fixed costs, the redundancy penalty under the Temporary Emergency Bridging Fund for Employment (NOW scheme) will be removed and seasonal businesses will be offered a helping hand. In addition, a partner test will be introduced under the Temporary Bridging Scheme for Independent Entrepreneurs (Tozo). 1. NOW scheme: redundancy penalty removed The contribution towards payroll costs that can be obtained under the NOW scheme will continue to apply from June to August for companies that suffer a drop in turnover of at least 20%. One important expansion being introduced via NOW 2.0 is that entrepreneurs will now receive a mark-up of 40% instead of the current 30% on their payroll costs. Redundancy penalty removed Under the new scheme it is permitted to make employees redundant for commercial
reasons without incurring a 50% penalty on the contribution received. Compensation for seasonal businesses also forms part of the new scheme. Please note: To qualify for the new NOW, companies are prohibited from distributing dividends, paying bonuses to their management and board or buying back their own shares this year.
2. Reimbursement of Fixed Costs for SMEs (in Dutch: Tegemoetkoming Vaste Lasten MKB (TVL)): higher compensation for fixed costs To date, under the Contribution for Entrepreneurs in Sectors Affected by COVID-19 scheme (TOGS) it has been possible for companies to obtain fixed compensation of € 4,000 for fixed costs. Under a new scheme compensation for fixed costs will now be available up to a maximum level of € 20,000 for the period from June to August. This applies if a company has suffered a drop in turnover of at least 30%. Please note: The amount of compensation that an entrepreneur can receive on balance depends on the size of the company, the level of its fixed costs and the drop in turnover suffered.
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