COVID-19: EY Government Support Package - The Netherlands 4 January 2020
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COVID-19: EY Government Support Package The Netherlands 4 January 2020
2 COVID-19: EMEIA EY Government Support Package
The Dutch government has decided to implement a series of economic measures designed to
protect people's jobs and livelihoods and to minimize the impact on self-employed people,
small and medium-sized enterprises and major companies.
The Dutch government indicated that under the announced measures, billions of euros will be
invested into the economy every month, for as long as necessary. According to the
government, the measures will ensure that companies are able to pay their employees'
wages, grant a bridging arrangement for self-employed people and allow companies to
manage cash through relaxed tax provisions, allowances and supplemental lines of
credit. The latest government support package is also aimed at helping companies to adapt to
the newly shaped environment and to make the necessary investments for the long-term.
Areas being addressed: These aims are primarily being delivered
through:
1. Providing liquidity through financing schemes
► Central Dutch government and the banking
2. Helping employers to protect jobs
system in terms of the guarantees and financing
3. Cash-flow support, including tax deferrals schemes that have been announced;
4. Administration, including governance ► The central tax system (covering cash tax
5. Legal considerations, including contract and deferral and employment support) as well as the
labor law considerations municipal tax system (for self-employed workers
and entrepreneurs); and
► The Customs Authorities in relation to the
relaxation of customs regulations and
compliance (however note the additional export
requirements for companies involved in the
production of personal protective equipment).
4 January 2021 COVID-19: EMEIA EY Government Support Package3 Dutch Government announced responses
Liquidity and financing Cash flow measures Administration
• Extension of the SME credit • Extension of the export credit • Possibility in the CIT to form a 'fiscal corona • Administrative penalties for late
guarantee (BMKB) scheme. insurance facility. reserve' in fiscal year 2019. payment of wage taxes or VAT will
• Possibility for substantial interest holders to not be imposed or waived if
• Extension of the Credit • Bridge loan guarantees for small
reduce the normal wage. imposed.
Guarantee scheme companies (KKC).
• Until 1 April 2021 requests can be filed for • Administrative penalties for late
for Agriculture (BL).
• Compensation Fixed Costs (TVL). three months deferral of certain tax payment or late compliance with
• Extension of the business loan payments. As of 1 July 2021 companies excise and customs duty
• Extension of the Dutch Trade and
guarantee scheme (GO Facility). should start repaying those deferred regulations will not be imposed or
Investment Fund (DTIF).
amounts. The government will propose a waived if imposed.
• Addition of the GO-C Facility to
• Bridge Loan for non-bank repayment plan which will last 36 months. • Several measures relaxing wage
further extend government
financed companies through • Reduction of collection interest to 0.01% until tax and labour tax compliance
support with state guaranteed
Regional Development Agencies. 31 December 2021. requirements have been
loans.
• Reduction of tax interest to 0.01% until 1 announced as well as several
• No phasing out of existing October 2020. As of 1 October 2020 tax measures relaxing the strict
• The government supports
schemes Groeifaciliteit. interest will be 4%. customs compliance requirements.
microcredit provider Qredits with
EUR 25 million. • Deferred payment of Early Phase • Relaxation of the hours criterion for
and Innovation credits. self-employed workers.
Employment support Welfare Legal
• Temporary Emergency Bridging • The Netherlands agreed on • Compensation payment of EUR 4,000 to • Consideration of non-performance
Measure for Sustained taxation of employment income for certain businesses in affected sectors contractual obligations by invoking
Employment (''NOW''); cross border commuters. (‘’TOGS’’). force majeure, unforeseen
Emergency fund to circumstances or the principle of
• Tax exemption for IT equipment • Compensation self-employed
compensate salary costs for reasonableness and fairness to find
and related costs, and office professionals to the social minimum (''Tozo'').
businesses that expect a specific some relief from obligations.
equipment required for health and
decrease of turnover.
safety purposes for employees • Postponement implementation
• Working from home will not be working from home. legislative proposal excessive
taken into account for determinin borrowing from own company.
• More tax free work-related costs
g the 25% condition for social
budget.
security purposes.
4 January 2021 COVID-19: EMEIA EY Government Support Package4 Financing: BMKB: Guarantee scheme SME loans /
BMKB: Borgstelling MKB-Kredieten
Last update: 10 December 2020
The Ministry of Economic Affairs Who is eligible? What does it cover? Practicalities
and Climate (EZK) has Small or medium enterprises, i.e. those The government guarantee is up to 90% Companies will need to consider the
established a guarantee that meet the following conditions: of the total guarantee on the loan. The implications for the future and whether
scheme for SMEs on loans from other 10% is backed with a personal they currently need the increased loans.
► Companies with a maximum of 250
guarantee from the shareholder. Currently there is no end date for this
certain participating banks. employees
program.
Aims to support SMEs that cannot offer
► Companies with yearly revenues
the financier enough collateral. More expensive than ordinary lending
Until 16 March 2020, the below €50m
due to the government margin charged
guarantee loan will be up to ► Companies with a balance total below
The scheme also applies to bridging
on top of usual interest rate.
50% of the total credit, from 16 loans and overdraft facilities with a term
€43m
of up to 4 years (update 29 Apr). Entrepreneurs need to submit a personal
March this has temporarily been The following sectors have their own guarantee for the remaining 10% of the
increased to 75%. The government will charge commission
supportive measures and so are not scheme.
to the bank at a rate of 2% (update per 8
eligible:
Apr) for maturities up to and including 8 Companies need to provide a forecast
Currently there is no end date ► Individuals, quarters and at a rate of 3% for the and rationale for the banks to take on
for this program, or the period between 9 and 16 quarters, which board the 25% of the loan which is
► Agriculture, fishery,
extension of the guarantee. will then be passed on to the borrower. uncovered.
► Public healthcare,
Payments of dividends will be restricted
On 8 April 2020 the government ► Financial services, and whilst the guarantee loan is in place.
has increased the available How is it accessed?
► Real estate
budget from €765m to €1.5b. SMEs can apply for a loan from one of
the participating banks who then apply to
the government. Currently, these are
ABN AMRO, Deutsche Bank, ING,
Rabobank, Riverbank and Triodos Bank.
On 8 April 2020 the government opened
this facility also for non-bank financiers
who need to be accredited.
For more information
Ludovic Beukers
ludovic.beukers@nl.ey.com
+31 (0)621252378
4 January 2021 COVID-19: EMEIA EY Government Support Package5 Financing: GO: Guarantee Enterprise Financing /
GO: Garantie Ondernemingsfinanciering
Last update: 10 December 2020
The EZK has a guarantee Who is eligible? What does it cover? Practicalities
scheme, the GO facility, for The following conditions must be met: For companies facing difficulties in Usually the process for approval takes 2
large companies, The GO ► Companies with substantial activity in
attracting bank loans. - 3 weeks on top of a regular banking
allows banks to receive a 50% process.
the Netherlands Loans (and potentially also RCF) with a
state guarantee on medium and ► Companies with no outstanding
term of up to 8 years. Early pre-payment of this guarantee is
large loans of up to €50m breach of covenants The GO allows banks to receive a 50%
possible only with make-whole penalties.
million, with a minimum of state guarantee on medium and large There may be restrictions on future
► The financing qualifies as Fresh
€1.5m. Money (i.e. new line of credit provided
loans. Loans of up to € 50 million are dividend payments whilst these loans are
guaranteed up to a maximum of € 25 in place.
by the bank).
million.
From 26 March 2020 the EZK ► No significant equity distribution in the
Banks will make a case-by-case
has temporarily increased the Guarantee premium is part of Interest assessment, requiring usual information
12 months before the application
Margin and paid by the bank to the on business plan/forecast.
size of individual loans which
► Could be used for capex government.
can be guaranteed under the The maximum of €150m applies to all
regular GO facility and GO-C The following sectors have their own EZK subsidies, including the GO-C
supportive measures and so are not How is it accessed? facility, the GO-ETFF and the Growth
facility combined, from €50m to eligible: facility and applies to the company group
€150m, in response of the Companies can apply for this through
as a whole.
► Agriculture, fishery one of the banks who will apply at the
Coronavirus outbreak. government. Currently, those banks are
► Public healthcare ABN AMRO, Bank of Tokyo-Mitsubishi
The total available pool from ► Financial services UFJ, BNP Paribas, Deutsche Bank, ING,
which guarantees will be NIBC, Rabobank, Riverbank, Royal Bank
► Real estate of Scotland, Société Générale and
granted has increased from
► Individuals Triodos Bank.
€200m to €10b as of 8 April
2020. This pool is used for Potentially other (European) banks can
apply this scheme if approved by the
regular GO financing as well as
Ministry of EZK.
GO-C financing.
The existing GO Facility runs until 1st of
April 2021.
For more information
Ludovic Beukers
ludovic.beukers@nl.ey.com
+31 (0)621252378
4 January 2021 COVID-19: EMEIA EY Government Support Package6 Financing: GO-C: Guarantee Enterprise Financing /
GO-C: Garantie Ondernemingsfinanciering Corona
Last update: 10 December 2020
Following the COVID-19 Who is eligible? What does it cover? Practicalities
outbreak, the EZK has Companies that meet the following Loans (and potentially also RCF) with a The extension of an existing GO facility
announced to extend the conditions: term of up to 6 years. into a GO-C facility will be approved by
existing GO facility with the the government within 1 week after
► Substantial activity in the Netherlands 80% state guarantee for large
application by the financier.
GO-C facility. companies (>€50m revenue, >250 FTE
► Healthy in the core with satisfactory
or a balance sheet total of over €43m). Purpose of the loan should be working
profitability and continuity prospects
capital, maintenance capex and/or a
The GO-C provides additional 90% state guarantee for SMEs (7 Financing: KKC: Small Credit Corona /
KKC: Klein Krediet Corona
Last update: 10 December 2020
On 8 May 2020, EZK has Who is eligible? What does it cover? Practicalities
announced a new support The KKC is intended to facilitate KKC provides 95% state guarantee on Entrepreneurs making use of the KKC
measure called Klein Krediet ‘fundamentally healthy’ companies with loans with a: have to pay the government a one-off
Corona (KKC; Small Credit sufficient ability to repay the loan. commission of 2%.
► Value between €10k and €50k
Corona) aimed at micro-, small- ► Maturity of max. 5 years
and medium-sized companies/ To be eligible for the KKC, entrepreneurs
► Interest of max. 4%
entrepreneurs. must meet the following criteria:
► Minimum revenue of €50k
€750m in bridge loan How is it accessed?
► Profitable business prior to the
guarantees will be made COVID-19 outbreak
Companies can apply for the KKC
available for companies with a through Rabobank, ABN AMRO, ING, de
► Registered with Chamber of Volksbank and Triodos, as well as other
small financing need (€10k up
Commerce (KvK) since 1 January financiers accredited for the BKMB-C.
to €50k). 2019
Companies can apply for the KKC until
30 June 2021. Loans granted since 7
The Dutch government
May 2020, which meet the terms of the
provides guarantees of 95% KKC, can be refinanced against the
(€750m) on loans with a same terms.
maximum interest of 4%
provided by banks and other
accredited financiers.
For more information
Ludovic Beukers
ludovic.beukers@nl.ey.com
+31 (0)621252378
4 January 2021 COVID-19: EMEIA EY Government Support Package8 Financing: TVL: Compensation Fixed Costs SMEs/
TVL: Tegemoetkoming Vaste Lasten MKB
Last update: 10 December 2020
On 20 May 2020, EZK has Who is eligible? What does it cover? Practicalities
announced a new support TVL is intended to facilitate Dutch SMEs TVL provides a total one-off Similar to the TOGS, the TVL will be
measure called in sectors that experience the most compensation for fixed costs of max. exempted from tax.
Tegemoetkoming Vaste Lasten significant COVID-19 impact from 1 June €90k (net) per 3 months starting from 1
2020 until 1 July 2021. October 2020 until 1 July 2021.
MKB (TVL; Compensation Additional compensation
Fixed Costs SMEs). It is aimed To be eligible for TVL, companies must The value of the TVL is determined on a
meet the following criteria: by company basis, depending on the The government will make €51m
at supporting Dutch SMEs in available for:
loss of revenue as a result of COVID-19
sectors that experience the ► Currently, >30% loss of revenue as a
and the share of the fixed costs that the ► Hospitality entrepreneurs to receive
most significant COVID-19 result of COVID-19 is required to be
company would have been able to cover additional one-off compensation of
eligible. The government will examine
impact. every period whether the threshold for
with the lost revenue. approximately 2.75% of the loss in
the loss of revenue will be raised. For Q4 2020 and Q1 2021, the subsidy revenue on top of the TVL
Eligible Dutch SME’s can percentage ranges between 50% and ► Organizers and suppliers in the
► Fixed costs must be at least €3,000
receive a total one-off and these are calculated based on a
70% depending on the loss in revenue. events sector to receive one-off
compensation of up to €90k The share of fixed costs (%) will be compensation ~€14k per entity on
percentage attributed to the SBI
determined as an average per sector. average on top of the TVL
from 1 October until 1 January (Standaard Bedrijfsindeling)
2021 and from 1 January until 1 classifications Additionally, the government will make
April. Sector restrictions are ►9 Financing: Guarantee scheme agricultural loans /
BL: Borgstellingskrediet Landbouw and Qredits
Last update: 10 December 2020
The Ministry of Agriculture, Who is eligible? What does it cover? Practical considerations
Nature and Food Quality (LNV) BL-C is currently available for Dutch, The BL facility supports healthy Applications are now open (including
has expanded the guarantee going concern, agricultural businesses businesses to secure additional working bridge loan) until 31 March 2021.
scheme for working capital (‘land en tuinbouw’) that are affected by capital by providing guarantees to banks.
Companies can apply for this through
COVID-19.
under the Guarantee scheme one of the banks who will apply at the
As per an announcement on 10 April, the % guar- government. Currently, those banks are
for agricultural loans (BL, BL- Max. loan
antee
Commission
BL-C scheme is also available for fishing ABN AMRO, Deutsche Bank, ING, NIBC,
Plus and VVK), to include a
and aquaculture (production and BL-C €1.5m 70% 0.5-2.25% Rabobank and Triodos Bank.
bridge loan guarantee, the BL- processing) businesses, retrospectively BL €1.2m 70% 3.0% Potentially other (European) banks can
C, for agricultural, fishing and from 18 March 2020. BL-Plus €2.5m 70% 3.0% apply this scheme if approved by the
aquaculture businesses. BL-Plus is an additional facility for VVK €2.5m 90% 1.0% Ministry of LNV.
companies focusing on durability or Max. term of 4 years for the temporary
innovation and VVK is for asset BL-C, 6 years for BL and 12 years for
enhancing credits, i.e. shortly after a VVK/BL-Plus. Either a linear or bullet
takeover or the start of a business. repayment schedule.
The EZK introduced additional Who is eligible? What does it cover? Practical considerations
support in the form of loan
repayment deferral and a 6,000 entrepreneurs who are clients and Qredits provides liquidity support in the Companies will need to review how to
already have credit. short-term for small businesses and demonstrate their credit strength.
significant interest discount for freelancers in need of capital. Interest margin for the first year is 2%
current borrowers of Qredits, a In addition, Qredits hopes to provide
and for the following years 5.75%.
bridging loans to 2,000 SME and For current SME businesses: standard
provider of microcredits to
freelancers in the short term. This may application procedure, i.e. assessment of Accessed by contacting Qredits’
start-ups and small be partly existing Qredits entrepreneurs business plan, prior year financials and emergency line directly.
businesses. and partly new Qredits clients for bridging forecast.
On 8 April additional budget for Qredits
credit, who already have a (bank) loan
The maximum amount is €25k and the was announced to provide new loan
elsewhere.
maximum term is 4 years. facilities against lower interest.
Postponement of repayment for 6 or 12
months can be realized and during this
period an interest rate reduction of 2% For more information
will be applied.
Ludovic Beukers
ludovic.beukers@nl.ey.com
4 January 2021 COVID-19: EMEIA EY Government Support Package +31 (0)62125237810 Financing: Additional support measures announced
Last update: 10 December 2020
The EZK has announced a What does it cover? Who is eligible? Practicalities
number of additional Several additional support measures The measures are mainly aimed at Practical considerations are still
measures on 7 April 2020, have been announced, including: mid-sized and large enterprises, and limited and will follow when detailed
mainly aimed at supporting companies financed with (external) plans are announced.
equity who are unable to receive bank
companies for which earlier financing (incl. startups and scale-
measures did not provide an ups). Conditions are to be
adequate solution, such as announced.
mid-sized and large ► Bridge loan for non-bank financed ► Financing will be provided through
enterprises, and companies companies (COL) ► Non-bank financed companies who regional development agencies
financed with (external) are impacted by COVID-19 and who (‘ROMs’)
► Government budget €100m
equity who are unable to are financed with (external) equity or
initially, extended with €200m on
venture capital (incl. startups and
receive bank financing (incl. 28 May 2020; and €150m on 28
scale-ups), and SMEs financed with
startups and scale-ups). August 2020
retained earnings
► The third block of COL loans
ended on 1 October 2020. The
government will announce a new
COL scheme until 30 June 2021
► Postponed phasing out of the Growth
Facility (Groei Faciliteit, GF), a facility ► Current users of the Growth Facility
that provides financiers a 50% (GF)
guarantee on subordinated loans and
shares of investment firms, by 1 year
to 1 July 2021
► Deferred payment of interest and
debt redemption on Early Phase ► Current users of the VFF and IK For more information
Financing (Vroegefasefinanciering, (innovative and early-stage Ludovic Beukers
VFF) and Innovation Credit entrepreneurs) that are affected by ludovic.beukers@nl.ey.com
(Innovatiekrediet, IK) by 6 months (1 COVID-19 +31 (0)621252378
April until 1 October 2021)
4 January 2021 COVID-19: EMEIA EY Government Support Package11 Cash flow measures: Deferral of tax payments
Last update: 14 December 2020 Practicalities
Who is eligible? Repayment of deferred tax
All companies that that have or are The extension of tax payments is The first instalment payment needs to be paid
Until April 1st, 2021 companies applicable for three months or longer if no later than July 31, 2021, following monthly
expected to have payment problems
that expect to have payment caused by COVID-19 and request is certain conditions were met. As of April instalments. In case it can be demonstrated by
problems caused by COVID-19 filed before April 1st, 2020. 1st 2021 all COVID-19 extensions will the taxpayer that it is not possible to start
can request to defer certain tax come to an end. repaying in July 2021, it is possible to defer this
repayment date. However, the entire tax debt
payments for 3 months. It is needs to be repaid no later than July 1, 2024.
possible – under certain How is it accessed? The repayment of those deferred The Decree mentions as an example the
conditions - to obtain additional amounts of tax will start July 1st, 2021. liquidity position of a taxpayer not allowing for
CIT, PIT, Health Insurance Act, VAT, repayments as of July 2021.
payment extension until April 1, wage tax: after receiving a tax To repay the tax debts as of July 1st,
2021. To repay the tax debts as assessment (of either one of the 2021 a repayment period of maximum Important to note is that the collection interest
of July 1st, 2021 a repayment mentioned taxes), the request can be filed 36 months, with equal monthly will be reduced to 0.01% until December 31,
with the Dutch tax authorities using a instalments, will be granted. 2021. If the duration of the reduction of the
period of maximum 36 months,
central P.O. box or digital form. The Collection interest of 0.01% will be collection interest will not be extended, it might
with equal monthly instalments,
request applied automatically. One charged until December 31, 2021. be possible that collection interest will be levied
will be granted. request was sufficient to request deferral during a part of the repayment plan. Under
of payment. For customs duty and other import normal circumstances the collection interest
These repayment taxes: amounts 4%.
Gambling tax, insurance tax, landlord tax,
arrangements do not apply to environmental taxes and excise ► Regular payment extension (for
customs duty and to VAT, duties (coal tax and excise duty only September 2020) with Covid19 as
valid justification can be requested up
excise duty (including on non- domestic transactions): receiving a tax
assessment, the request for that to 15 October 2020.
alcoholic beverages) and coal
tax to the extent these taxes concerning tax assessment can be filed ► Payment extension should however
with the Dutch tax authorities using a be accompanied by setting a
are levied upon import central P.O. box or digital form. The corresponding bank guarantee
request applies automatically.
► The bank guarantee requirement may
BPM (tax on passenger cars and only be waived in case of severe For more information
motorcycles: economic or social distress and will Roxana Bos Schepers
applicable as of the tax period May 2020 be reviewed on an individual basis roxana.bos@nl.ey.com
after receiving a tax assessment. Tel: +31 (0) 6 2908 3317
Customs duty and other import taxes: no Ilona van den Eijnde
special payment extension ilona.van.den.eijnde@nl.ey.com
program available, but the regular
payment extension program may be Tel: +31 (0) 6 2125 1475
applied for.
4 January 2021 COVID-19: EMEIA EY Government Support Package12 Cash flow measures: Other cash tax management (I)
Last
Lastupdate:
update:14
26December
May 20202020
The Government has Tax and collection Practical considerations In case the amount of the discount
is set at close to nil due to the
announced that the interest Until October 1, 2020 tax interest lowered rate to 0.01%, taxpayers
collection interest will be The reduction of collection was reduced from 4%/8% to can file an objection. The discount
reduced to 0.01% until at interest is introduced as a tax 0.01%. will then be determined based on
least December 31st, 2021. measure to provide financial According to the decree this will the collection interest rate of at
support to companies that have not apply to collection interest in least 4%. This is applicable as of
The tax interest was or are expected to have case of a refund of collection March 23, 2020.
reduced to 0.01% until payment problems. interest by the Dutch tax
October 1st, 2020. As of However, since this reduction authorities to the taxpayer. In case
October 1st, 2020 the tax applies to all taxes, we expect of a refund of collection interest,
interest will be 4% (also for that all taxpayers who are liable the regular rate applies which
to Dutch taxes are eligible amounts to at least 4%.
CIT).
to these reduced interest rates.
The collection interest rate is also
relevant to determine the discount
in case certain tax payments are
made at once (in Dutch
‘betalingskorting’).
As of October, 1 2020 the tax
interest will be 4% (also for CIT
which under normal circumstances
amounts to a minimum of 8%).
For more information
Roxana Bos Schepers
roxana.bos@nl.ey.com
Tel: +31 (0) 6 2908 3317
4 January 2021 COVID-19: EMEIA EY Government Support Package13 Cash flow measures: Other cash tax management (II)
Last update: 14 December 2020
The Government allows Deferral of settlement energy tax and Practical considerations For more information
energy suppliers and taxable SDE Please note that when a taxable Bastiaan Kats
users to settle the energy After consultation with the energy suppliers, the person does not meet the conditions
bastiaan.kats@nl.ey.com
tax and surcharge durable Government approved that the energy suppliers for this arrangement, he can still
energy and climate transition are allowed to settle the energy tax and the SDE, request for deferral of payment of Tel: +31 (0) 6 2908 3773
inclusive of VAT, for the supply of natural gas and energy tax and SDE as described in
(SDE), inclusive of VAT, with slide 11.
electricity in the months of April, May, June, July,
respect to the supply August and September 2020, at a later time than
respectively usage of natural usual but no later than January 1st 2021. In connection with the foregoing, for
gas and electricity for the some specifically mentioned energy
months April, May, June, This approval applies in four situations. tax and SDE refund schemes, the
government has, under conditions,
July, August and September extended the period within which the
The first two situations basically
2020 at a later time than concerns supplies for which the energy supplier refund for the period April up to and
usual but no later than does not invoice advance payments or, if including September 2020 must be
January 1st 2021 under nevertheless invoices for advance payments, the requested until 13 weeks after
certain conditions. reconciling invoice relates to a calendar month. December 31st 2020.
The basic principle here is that the energy Furthermore for the situations that
supplier does not charge energy tax and SDE, invoices are not paid (uncollectible /
This measurement will not inclusive of VAT, to the concerning customers on bad debts) specific arrangements are
be extended. invoices and in payments for supplies in April, made.
May, June, July, August and September 2020.
The third situation concerns – in short – supplies
for which the energy supplier does not invoice.
Finally, the fourth situation concerns – in short –
situations in which the usage of electricity and/or
natural gas is taxed instead of the supply, for
example the use of self-generated electricity.
However, in this fourth situation the energy tax
and SDE become due on December 31st
2020.However, in this fourth situation the energy
tax and SDE become due on 31 December
2020However, in this fourth situation the energy
tax and SDE become due on 31 December 2020
4 January 2021 COVID-19: EMEIA EY Government Support Package14 Cash flow measures: Other cash tax management (III)
Last
Lastupdate:
update:14
26December
May 20202020
The government Corona-reserve Practical considerations For more information
introduced a measure in In determining the taxable profit for We do note that the loss expecting to Roxana Bos Schepers
order to effectively 2019, companies will be able to take a loss into incur in 2020 needs to be determined
carefully. If the amount of the expected roxana.bos@nl.ey.com
carry-back expected account they expect to incur in fiscal year 2020.
losses in 2020 to 2019. loss is larger than the amount of Tel: +31 (0) 6 2908 3317
This loss compensation can normally only take
the final loss determined in the tax
place upon filing the 2020 Dutch corporate income
return of 2020, the 'corona-
tax return, which will be no earlier than early 2021.
reserve' taken into account in the 2019
The Dutch Government will make it possible for corporate income taxation will be
companies to deduct the expected loss due to the amended. This will result in corporate
COVID-19 crisis for the year 2020 from the taxable income tax 2019 due with possible
profit of 2019 as a ‘corona-reserve’. When calculation of tax interest.
you already paid a preliminary corporate income
It is important to note that by forming the
tax assessment 2019, this measurement results in
'corona-reserve' the taxable profit of
a direct tax refund.
2019 will be lowered. This lowering of
The corona-reserve may not exceed the 2019 the profit will result in a lower EBITDA
profit before considering the reserve. In addition, and will therefore have other tax
the corona-reserve may not exceed the expected consequences. For example, the
loss as a result of the COVID-19 crisis in 2020. deductible interest under the
Other than the earningstripping (ATAD 1) and the
government measures, incentive of the innovation box may be
lower.
it may also be possible
to reduce a preliminary
tax assessment in order Preliminary tax assessment Practical considerations
to improve liquidity. If companies which have received and paid a Penalties can be imposed for deliberately
preliminary tax assessment for 2020 (CIT/PIT) now providing incorrect or incomplete
expect lower profits in 2020 as a result of COVID- information when requesting a preliminary
19, it may be possible to amend the preliminary tax tax assessment or a revision of a
assessment and get a refund of tax already paid. preliminary tax assessment.
4 January 2021 COVID-19: EMEIA EY Government Support Package15 Personal income tax measures
Last
Lastupdate:
update:14
26December
May 20202020
The government Relaxation hours criterion Postponement proposal For more information
introduced three Entrepreneurs who are liable to income tax can, under certain excessive borrowing from Roxana Bos Schepers
personal income tax conditions, claim various entrepreneurial facilities. Some of these own company roxana.bos@nl.ey.com
measures to mitigate entrepreneurial facilities, such as the self-employed tax deduction
The legislative proposal excessive
(‘’zelfstandigenaftrek’’), can only be claimed if the ‘hours criterion’ Tel: +31 (0) 6 2908 3317
unwanted borrowing from an own company
is met. This hours criterion is in principle met when the
consequences due to (‘’Wet excessief lenen bij eigen
entrepreneur spends at least 1225 hours (for start-ups 800 hours)
the corona-crisis. vennootschap’’) will be postponed
per calendar year on activities for his business. To prevent
for one year until 1 January 2023.
entrepreneurs from losing the right to claim these facilities, the
The proposal regards the taxation
Dutch Tax Authorities will assume that these entrepreneurs have
of the debts of an individual
spent at least 24 hours (for start-ups 16 hours) a week on their
business owner owed to the own
business during the period 1 March 2020 to 30 September 2020,
company that are higher than
even if they did not actually spent those hours.
€500,000 (excluding qualifying
For entrepreneurs who have seasonal work, such as festival owner-occupied home debt). By
industry, the Dutch Tax Authorities will assume during the period 1 postponing the entry into force by
March 2020 to 1 September 2020 that these entrepreneurs have one year until 1 January 2023,
spent the same number of hours as the normally do in other years individual business owners have
in the same period. until 31 December 2023 (first
reference date) to anticipate the
legislative proposal.
Payment deferral for mortgage obligations
Lenders such as banks are offering customers that are temporarily unable to meet their payment obligations the option of deferring the
payment of interest and repayment of the principal amount for up to six months. Under current legislation, mortgages that are subject
to a tax repayment obligation must be repaid by 2021 at the latest if a deferral of payment was provided in 2020. The government
introduced a measure to retain the right to deduct interest of the mortgage by two means:
1. The repayment arrears can be (directly) spread over the remaining term of the mortgage (of maximum 360 months).
2. Alternatively, a customer can choose to split his remaining loan. This means that the maximum of six months in repayment arrears
does not necessarily have to be spread over the full remaining term. Instead, the repayment can be made within, for example, five
years.
The government is examining how and under what conditions the measure may also apply to loans for which the tax repayment
obligation does not apply and for loans that have been provided by a person other than a creditor with a documentation obligation,
such as a loan from an own BV or a family member.
4 January 2021 COVID-19: EMEIA EY Government Support Package16 Administration: Indirect Tax – Global Trade / Customs
Last update: 9 oktober 2020
The Dutch Customs Who is eligible? What does it cover? For traders in personal protective gear:
Authorities have announced ► All companies involved in excise and For all companies: ► A customs duty exemption (0%) for
a number of administrative customs duty payments and licenses the import of personal protective gear
► Late compliance may be excusable, is conditionally available.
measures to provide relief for the general measures
decided on a case by case basis
from strict customs related ► Companies holding a preferred trader
► Flexible approach to penalties for late
compliance. license, i.e. an Authorized Economic
Practical considerations
payments or late compliance
Operator (AEO) license for AEO
The Dutch Customs specific measures ► Pro-forma objections (i.e. without Companies will first need to consider if
details on why the request is made) they are in need of one or more of the
Authorities have ► Companies, health providers or
and refund requests allowed; may be reliefs and the timing/procedure to
also installed both a governmental institutions providing for
possible to file late apply.
personal protective gear for the import
customs duty exemption for duty exemption For license holders: The customs duty exemption for the
imports, and a mandatory import of personal protective gear is
export license for exports, ► Individual exceptions for companies
accessed via the regular customs
not meeting the standard
for companies providing for requirements for denatured alcohol if
declaration procedure. The importer may
personal protective gear require an individual import license or
used for medical disinfectant gels
approval, which may be obtained with
(non-commercial only). ► Reduction or full exemption of bank retrospective effect.
guarantees
All other measures are based on
► Extension of current license individual circumstances and should be
applications that cannot be completed accessed/discussed by contacting the
relevant DCA officers.
► Tailored treatment of urgent requests
for licenses (based on individual
circumstances)
► Leniency towards companies that
cannot comply with the financial
solvency requirements in relation to
AEO licenses For more information
Ilona van den Eijnde
ilona.van.den.eijnde@nl.ey.com
Tel: +31 (0) 6 2125 1475
4 January 2021 COVID-19: EMEIA EY Government Support Package17 Indirect Tax – VAT
Last update: 31 August 2020
The Dutch Ministry of Finance 1. No VAT on the supply of 2. No VAT on the free supply of medical 4. Lower VAT rate for online
have issued a Decree that medical staff equipment/goods sports classes by fitness centers
provides for tax concessions to Who is eligible? Who is eligible? Who is eligible?
alleviate the effects of battling ► All companies involved in the ► All companies involved in the free supply of ► All fitness centers/gyms and
the COVID-19 virus. supply of medical staff to Covid-19 medical supplies. similar businesses
hospitals and other designated What does it cover?
Under this Decree, the (medical) facilities. What does it cover?
For all companies: The measure applies to all fitness
measures regarding the supply What does it cover? centers and similar businesses that
of staff and Covid-19 medical • No VAT is due on the free supply of Covid-19 offer paid on-line classes. Even though
The measure applies to all
supplies are applicable/in force business supplying staff to the
medical supplies as included in an technically the lower VAT rate only
from 16 March 2020 up to and addendum to the Decree. The addendum is applies to granting admission to these
designated facilities, as long as the
based on the 'HS classification reference for classes, the Decree allows
including 30 September 2020. following requirements are met:
Covid-19 medical supplies' as published by the application of the lower VAT rate
This was extended to 31 1. The medical staff is supplied the World Customs Organization and as (currently 9%) to on-line sports lessons
December 2020. to certain well-defined valid on the date of publication of the Decree. as well.
organizations and institutions;
The measure regarding the Practical considerations 5. Lower VAT rate for the supply
application of the lower VAT 2. The supplier must include the of cotton swabs
use of this special measure on A condition for applying this measure is that the
rate is applicable from 16 costs of the Covid-19 medical supplies are The Ministry of Finance published a
his invoices and ensure that it
March 2020 until the obligatory is included in his records; and treated as 'general costs' for VAT deduction. clarification about the application of the
closure ends. Invoices for the free supplies have to mention lower rate to the supply of cotton swabs
3. The consideration for the the application of this special scheme and it has used for COVID-19-testing. This is not
Another Decree allows supply cannot exceed the to also be clear from the records. a new rule but, as said, a clarification of
businesses to apply a VAT gross labour costs plus a the term 'medical equipment'.
maximum of 5% for admin. 3. Supply of (medical and non-medical)
exemption with credit (zero surgical masks VAT exempt with credit
rate) to supplies Practical considerations
The exempt turnover generated by Who is eligible?
of (medical and non-medical)
surgical masks from 25 May the supply of staff under this ► All businesses selling such masks
approval does not affect the VAT
2020 until (at least) deduction position of the supplier. What does it cover? For more information
September 2020. This measure The measure applies to all supplies of medical Jeroen Bijl
was also extended to 31 and non-medical surgical masks. The VAT Jeroen.bijl@nl.ey.com
December 2020. exemption with credit is applicable to supplies Tel: +31 (0) 6 2125 1839
from 25 May 2020 until 31 December 2020.
4 January 2021 COVID-19: EMEIA EY Government Support Package18 Employment support – labor law
Last update: 18 december 2020
Who is eligible? What does it cover? How is it accessed?
The amount of subsidy is based Companies eligible for the subsidy can
In March 2020, the Dutch The NOW is extended by 3 periods of 3 on the wage costs, and depends request the subsidy at the Public
government announced a months from 1 October 2020 until 1 on the loss of turnover and can be Employment Services (in Dutch: ‘UWV’).
temporary measure to help July 2021. In the first period, from 1 up to:
mitigate the financial October to 31 December 2020, Application for the first period of the
employers with a loss in turnover of at 1. 80% of employee costs in the NOW 3.0 can be submitted from 16
consequences of Covid-19
least 20% are eligible for the wage period 1 October until 31 November 2020 until 27 December
for employers and stimulate subsidy. As of April 2021, there must December 2020 (turnover loss 2020. The payments of the advance
keeping employees be a 30% loss in turnover. Over 9 at least 20%); should then be made within 2 to 4
employed during this time: months, there will be a gradual 2. 80% of employee costs in the weeks following the date of application.
the Temporary Emergency reduction in compensation rates from period 1 January until 31
80% to 60%. As opposed to the March 2021 (turnover loss at
Bridging Measure for Practicalities
reduction in compensation, there is the least 20%);
Sustained Employment possibility of gradually reducing the 3. 60% of employee costs in the Employers may need to inform the
(‘NOW 1.0’). The NOW 1.0 wage bill without affecting the subsidy. period 1 April until 30 June works council, staff representation
applied for a period of 3 2021 (turnover loss at least and/or employees about the NOW
months (application between If the employer is part of a "group", the 30%). application.
(loss of) turnover of the entire group is Restrictions to the payment of dividends
March 2020 and May
the basis for the NOW application. After the initial assessment of the and bonuses and the (re)purchasing of
2020). After an initial period Above a certain subsidy limit, application, the employer will own shares may apply.
of 3 months, the NOW has restrictions apply to the payment of receive a payment in advance of Employers will need to substantiate the
been extended by 4 months dividends to shareholders, the payment (expected) at least 80% of the loss of turnover.
(application between June of bonuses to executives of the expected total subsidy, paid in
employer and the group, and the multiple instalments. The actual Companies with "larger" applications
2020 and August 2020).
(re)purchasing of own shares. amount of subsidy the employer is (i.e., if the advance payment is EUR
eligible for is determined 25.000 or more, or if the final subsidy is
The NOW has been If a group has incurred a loss of afterwards, based on the final EUR 125.000 or more), will have to
extended again for 9 months turnover of less than 20%, an operating (turnover) figures and compliance submit an audit report or other expert
until June 2021. company with a loss of turnover of at with the obligations. statement with the application for the
least 20% may also apply for the Consequently, employers may final determination of the subsidy.
NOW. receive additional payments or
have to repay (part of) the
The employer has the obligation to advance. For more information
encourage and enable their employees
to receive further education and/or Huub van Osch
The discount applied in the NOW
training. huub.van.osch@hvglaw.nl
2.0 scheme at the time of
Tel: +31 (0) 6 5544 2048
dismissal due to business
economic reasons will not apply
4 January 2021 COVID-19: EMEIA EY Government Support Package under the NOW 3.0.19 Employment support: Self-employed workers
Last update: 28 April 2020
The Compensation self- Who is eligible? What does it cover? Practicalities
employed persons* Self-employed workers whose Self-employed workers can obtain a The additional compensation does not
(Tijdelijke businesses are affected due to COVID- welfare benefit for a 3-month period have to be reimbursed.
overbruggingsregeling 19 and who do not earn the social payable on a monthly basis;
The regulation has a retroactive effect
zelfstandige ondernemers) minimum income anymore.
The benefit is capped at the social if applied for in the period March 2020
concerns temporary support Eligible for the compensation are the self- minimum income of €1,500 net (married) – May 2020.
for self-employed workers so employed workers who: and €1,050 net (individuals).
Support is also possible via a working
they can continue their ► Are over 18 years; An advance payment is possible. capital loan, of up to €10,517 with 2%
business. ► Are Dutch residents with a Dutch
interest. Maximum duration of the loan
is three years. Repayment is only
resident company;
required as from 1 January 2021.
The new regulation applies ► Are registered at the Chamber of
as of 1 March 2020, for a How is it accessed?
Commerce;
The scheme will be executed by local
period of 3 months. Cross border
► Started their business prior to 17 municipality (an application form will be
March 2020 at 18.45pm; made available shortly) Self employed workers who reside
*also available for other in the Netherlands and operate
► Work at least 1,225 hours per annum The total compensation depends on the
entrepreneurs / DGA’s personal position (e.g. household
their business in another EU
for their business/profession;
under certain conditions member state are also eligible for
composition) and applicants may be
► Reside in the municipality where they the welfare benefit.
requested to provide further insights on
apply for the additional support.
family composition; Self employed workers residing in
The regulation also applies for other another EU member state and
Additional information on the company
entrepreneurs who meet the following operating their business in the
may be requested.
requirements: Netherlands could be eligible for
Applicants should declare that their the working capital loan.
Working at least 1125 hours per annum
income for the application period, does
for their business; It will be confirmed how the non
not meet the social minimum due to
Dutch resident self employed
► Have full control/ownership of the COVID-19 and/or the company is facing
worker needs to apply.
company and be liable for the liquidity issues due to COVID-19.
companies’ financial risks;
For more information
► Are unable to pay wages.
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
4 January 2021 COVID-19: EMEIA EY Government Support Package20 Employment support: gebruikelijk loon (‘customary
wage’)
Last update: 15 September 2020
The cutomary wage Who is eligible? What does it cover? How is it accessed?
(gebruikelijk loon) which a A Director/substantial shareholder needs ► The customary wage (gebruikelijk Further details are expected to be
Director/substantial to derive a minimum employment income loon) will temporarily (2020) be announced shortly.
from his company for payroll and income lowered for companies impacted by
shareholder needs to
tax purposes. Payroll tax needs to be COVID-19.
receive from the company withheld on this customary wage or
can be lowered ► The customary wage will be lowered
‘gebruikelijk loon’
in accordance with the decrease in
turnover, for which a comparison is
made between the relevant period
2020 against the same period 2019.
For more information
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
4 January 2021 COVID-19: EMEIA EY Government Support Package21 Employment support: social security (WAB)
Last update: 2 April 2020
The Dutch tax authorities will Who is eligible? What does it cover? How is it accessed?
be more accommodating Under the WAB Unemployment ► This premium will be adjusted so that It has not been confirmed which sectors
towards employers Insurance (WW) employers pay a low the high contribution does not apply to this applies to yet. Companies will need
contribution (2.94%) for employees on sectors with overtime due to COVID- to verify first whether their sector is
regarding the new Balanced
indefinite employment contracts and a 19, such as in the healthcare sector covered under the overtime exemption.
Labour Market Act (WAB). high contribution (7.94%) for employees
► The low contribution only applies
on flexible contracts, including indefinite
when employment agreements are in
part-time contracts (22 Employment support: onboarding requirement
Last update: 15 September 2020
The Dutch tax authorities will Who is eligible? What does it cover? How is it accessed?
be more accommodating Employers hiring and onboarding new ► The Dutch tax authorities indicated Measures can be applied by employers.
towards employees need to fulfill administrative that they will be more accommodating
requirements for payroll taxes that due to towards employers that cannot meet
employers' administrative
COVID-19 measures sometimes cannot their administrative payroll taxes
payroll taxes requirements be met. requirements for onboarding new
for onboarding employees. employees due to COVID-19
measures.
► This applies for example where
employers cannot identify a new
employee in person. Sanctions (of the
anonymous tax rate being applicable)
will not apply as long as the employer
takes care of proper identification
once possible again.
For more information
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
4 January 2021 COVID-19: EMEIA EY Government Support Package23 Employment support: cross border employment
Last update: 15 September 2020
The Dutch social security Who is eligible? What does it cover? How is it accessed?
authorities (Sociale This concerns multiple state workers (or ► The Dutch social security authorities There is no need to make arrangements
Verzekeringsbank) have cross border commuters) living or confirmed working from home due to for these cross border employees. The
decided that working from working within the European Union, the COVID-19 will not be taken into regular rules otherwise apply.
home due to COVID-19 will European Economic Area or Switzerland. account for determining the multiple
state workers’ social security position.
not be taken into account for In accordance with the EU directive on
determining the 25% social security these multiple state ► Rules will be applied as if working
condition for social security workers are required to pay social from home due to COVID-19 has not
security in their home country when occurred.
purposes. working there at least 25% of their time
Due to COVID-19 the social security
position of multiple state workers What does it cover? How is it accessed?
therefore may change due to working
from home. ► The Netherlands and Germany Dutch resident employees that work in
agreed that a change in Germany may receive a net German
The Dutch tax authorities employment pattern due to COVID-19 state benefit. The Netherlands
clarified tax positions for COVID-19 does not impact and Germany agreed that the
cross border commuters Who is eligible? taxation on the employee's Netherlands will exempt this benefit from
employment income. Taxation will taxation.
Dutch resident employees working in be levied in accordance with the
Belgium or Germany could be confronted 'regular' working
with Dutch taxation on their employment pattern. Employees, however,
income whilst working from home (or the may choose to apply the tax treaty
other way around for Belgium or German rules and possibly have their
residents working in the Netherlands). employment income taxed in the
Authorities have taken measures to resident state whilst working from
mitigate the COVID-19 'working from home. The agreement applies till
home' impact on taxation on employment mutual termination
income.
► The Netherlands and Belgium How is it accessed?
For more information have made similar arrangements Measures can be applied in line with
that apply till 31 December 2020. regular rules on (wage) tax filings.
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
COVID-19: EMEIA EY Government Support Package
4 January 202124 Employment support : Reimbursement of costs and
allowances
Last update: 15 September 2020
This sheet provides for an Who is eligible? How is it accessed? Practicalities
overview of employment The Work Related Cost Scheme (WRCS) Employers should designate the ICT- ► Employers should conclude an
support while employees allows certain IT related equipment to be equipment and the health and safety agreement with their employees when
are working from home. This provided to employees tax free (including facilities as work-related costs (under they provide the employees with for
concerns existing legislation an allowance for internet costs) as long specific exemption) in their WRCS example a laptop. The agreement
as the equipment is required to perform administration. should include that the employee will
that may be relevant now the job, i.e. the ‘necessity criterion’ return the provided equipment or pay
due to working from home Both employee and employer
the residual value, if the equipment no
because of COVID-19. There is also a specific exemption for the therefore benefit from the tax free
longer meets the legal conditions.
provision of equipment for health and facility.
This should be assessed for example
safety purposes (arbovoorzieningen) per
The tax free budget for the The claim should be made at the moment when the COVID-19 crisis is over and
the Working Conditions Policy
when the equipment is provided to the employees return to their usual
Work Related Costs scheme (Arboplan), e.g. a desk and an office
employee. workplace at the office.
has been increased from chair can be provided to ensure an
1,7% to 3% over the first ergonomic workplace at home. ► If an employer asks for an allowance
when providing the laptop, the
400,000 Eur of taxable The tax free budget over the first 400,000
‘necessity criterion’ is not met and the
wages. Eur of taxable wages has been increased
specific exemption cannot be applied.
from 1,7% to 3% for tax year 2020.
Taxation on home-work
travel allowances not Who is eligible? What does it cover? How is it accessed?
impacted by COVID-19
Whilst working from (or staying at) home ► Tax authorities approved that COVID- Employers should apply the regular rules
employees do no longer make travel 19 changes in travel patterns will not for tax free payout of home – work travel
expenses and employees could be impact taxation on travel allowances allowances and regard the COVID-19
confronted with taxation on the for home – work. Travel expenses can 'home' days under the regular travel
travel allowance that they receive for be reimbursed in accordance with the pattern.
home – work travel expenses (where regular rules and COVID-19 'home'
employers continue payout). days can be regarded as travel days
in accordance with the regular For more information
working pattern. Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
4 January 2021 COVID-19: EMEIA EY Government Support Package25 Commercial contracts: Legal considerations
Last update: 2 April 2020
As a result of Covid-19 and Force Majeure Unforeseen circumstances Reasonableness & fairness
the governmental measures ► Force majeure is a circumstance ► Upon the request of any party to an ► Under Dutch law, all contractual
introduced, parties may be which makes it impossible for a party agreement; the court may either terms are governed according to
entitled to suspend their to meet its (contractual) obligations. modify the effects of a contract or set standards of reasonableness and
payment obligations and/or it aside in whole or in part, on the fairness. A clause is not enforceable
► By law, force majeure applies where a
basis of unforeseen circumstances to the extent that, in the given
amend their contractual party was not at fault for the failure
which are of such a nature that the circumstances, this is not the case.
obligations by invoking force and where it cannot be held
other party cannot expect, in
majeure, unforeseen accountable on the basis of the law, a ► The extraordinary circumstances due
accordance with generally held
legal act, or common law. to Covid-19 may for certain parties
circumstances or the standards of reasonableness and
result in unreasonable negative
principle of reasonableness ► In the event of force majeure the other fairness, the unaltered contract to
consequences, such that contractual
party cannot claim performance or continue to be valid and enforceable.
and fairness to find some compensation from the defaulting
terms may not be applicable.
relief from their obligations. ► The court may grant such modification
party. ► This may oblige parties to renegotiate
or setting aside a retroactive effect.
their contractual terms. If no
► Contractual terms may extend or limit
This should be determined the scope of force majeure
► On the basis of this legal concept a agreement is reached, a court may
on a case by case party could try to renegotiate and have determine that certain terms no longer
circumstances or the consequences
its lease obligations decreased for the apply.
basis. The general rule of thereof.
period of the Covid-19 measures for
'pacta sunt servanda’ instance.
(agreements are to be kept)
remains the basic principle
and that restrictions to this
principle may only be
applied in exceptional
circumstances.
For more information
Robin de Wit
robin.de.wit@hvglaw.nl
Tel: +31 (0) 6 2125 2626
4 January 2021 COVID-19: EMEIA EY Government Support PackageYou can also read
