COVID-19: EY Government Support Package - The Netherlands 8 February 2021
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COVID-19: EY Government Support Package The Netherlands 8 February 2021
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).
8 February 2021 COVID-19: EMEIA EY Government Support Package
3 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 July 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 October 2021 companies excise and customs duty
• Extension of the Dutch Trade and should start repaying those deferred regulations will not be imposed or
guarantee scheme (GO Facility).
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 Reduction of collection interest to 0.01% tax and labour tax compliance
financed companies through •
support with state guaranteed
Regional Development Agencies. until 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 the measures relaxing the strict
• The government supports
schemes Groeifaciliteit. tax interest is 4%. customs compliance requirements.
microcredit provider Qredits
with EUR 70 million. • Deferred payment of Early Phase • Relaxation of the hours
and Innovation credits. criterion for 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 certain businesses in affected sectors contractual obligations by invoking
Employment (''NOW''); for 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
businesses that expect a specific some relief from obligations.
equipment required for health (''Tozo'').
decrease of turnover.
and safety purposes for • Postponement implementation
• Working from home will not be employees working from home. legislative proposal excessive
taken into account for determini borrowing from own company.
• More tax free work-related costs
ng the 25% condition for social
budget.
security purposes.
8 February 2021 COVID-19: EMEIA EY Government Support Package
4 Financing: BMKB: Guarantee scheme SME loans /
BMKB: Borgstelling MKB-Kredieten
Last update: 25 January 2021
The Ministry of Economic Who is eligible? What does it cover? Practicalities
Affairs and Climate (EZK) has Small or medium enterprises, i.e. those The government guarantee is 90% for Companies will need to consider the
established a guarantee that meet the following conditions: SMEs and 80% for larger corporations implications for the future and whether
scheme for SMEs on loans from of the total guarantee on the loan. The they currently need the increased
► Companies with a maximum of 250
other 10% is backed with a personal loans. Currently there is no end date for
certain participating banks. employees
guarantee from the shareholder. this program.
► Companies with yearly revenues
Until 16 March 2020, the Aims to support SMEs that cannot offer More expensive than ordinary lending
below €50m
the financier enough collateral. due to the government margin charged
guarantee loan will be up to ► Companies with a balance total on top of usual interest rate.
50% of the total credit, from 16 The scheme also applies to bridging
below €43m
loans and overdraft facilities with a Entrepreneurs need to submit a
March this has temporarily The following sectors have their own term of up to 4 years (update 29 Apr). personal guarantee for the remaining
been increased to 75%. supportive measures and so are not 10% of the scheme.
The government will charge
eligible:
commission to the bank at a rate of 2% Companies need to provide a forecast
Currently there is no end date ► Individuals, (update per 8 Apr) for maturities up to and rationale for the banks to take on
for this program, or the and including 8 quarters and at a rate board the 25% of the loan which is
► Agriculture, fishery,
extension of the guarantee. of 3% for the period between 9 and 16 uncovered.
► Public healthcare, quarters, which will then be passed on
Payments of dividends will be restricted
On 8 April 2020 the to the borrower.
► Financial services, and whilst the guarantee loan is in place.
government has increased the ► Real estate The BKMB is opened until the end of
How is it accessed?
available budget from €765m 2021.
to €1.5b. The tenor was SMEs can apply for a loan from one of
prolonged to 4 year. the participating banks who then apply
to the government. Currently, these are
Furthermore, was the premium ABN AMRO, Deutsche Bank, ING,
lowered from 3,9% to 2% for a Rabobank, Riverbank and Triodos Bank.
tenor until 8 quarters, for On 8 April 2020 the government
longer tenors a 3% premium is opened this facility also for non-bank
applicable. financiers who need to be accredited.
For more information
Ludovic Beukers
ludovic.beukers@nl.ey.com
+31 (0)621252378
8 February 2021 COVID-19: EMEIA EY Government Support Package
5 Financing: GO: Guarantee Enterprise Financing /
GO: Garantie Ondernemingsfinanciering
Last update: 25 January 2021
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 allows ► Companies with substantial activity
attracting bank loans. - 3 weeks on top of a regular banking
banks to receive a 50% state process.
in the Netherlands Loans (and potentially also RCF) with a
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 possible only with make-whole
breach of covenants The GO allows banks to receive a 50%
million, with a minimum of penalties.
state guarantee on medium and large
► The financing qualifies as Fresh
€1.5m. Money (i.e. new line of credit
loans. Loans of up to € 50 million are There may be restrictions on future
guaranteed up to a maximum of € 25 dividend payments whilst these loans
provided by the bank).
million. are in place.
From 26 March 2020 the EZK ► No significant equity distribution in
has temporarily increased the Guarantee premium is part of Interest Banks will make a case-by-case
the 12 months before the application
size of individual loans which Margin and paid by the bank to the assessment, requiring usual
► Could be used for capex government. information on business plan/forecast.
can be guaranteed under the
regular GO facility and GO-C The following sectors have their own The maximum of €150m applies to all
supportive measures and so are not How is it accessed? EZK subsidies, including the GO-C
facility combined, from €50m eligible: facility, the GO-ETFF and the Growth
to €150m, in response of the Companies can apply for this through
one of the banks who will apply at the facility and applies to the company
Coronavirus outbreak. ► Agriculture, fishery
government. Currently, those banks are group as a whole.
► 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 ► Real estate
NIBC, Rabobank, Riverbank, Royal Bank
granted has increased from of Scotland, Société Générale and
► 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
8 February 2021 COVID-19: EMEIA EY Government Support Package
6 Financing: GO-C: Guarantee Enterprise Financing /
GO-C: Garantie Ondernemingsfinanciering Corona
Last update: 25 January 2021
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 80% state guarantee for large
application by the financier.
GO-C facility. Netherlands companies (>€50m revenue, >250 FTE
or a balance sheet total of over €43m). Purpose of the loan should be working
► Healthy in the core with satisfactory
The GO-C provides additional capital, maintenance capex and/or a
profitability and continuity prospects 90% state guarantee for SMEs (
7 Financing: KKC: Small Credit Corona /
KKC: Klein Krediet Corona
Last update: 25 January 2021
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
Applying for KKC can be done until 30
and medium-sized companies/ June 2021 at a financier.
To be eligible for the KKC,
entrepreneurs. ► Interest of max. 4%
entrepreneurs must meet the following Loans since 7 May 2020 provided
criteria: which comply with KKC, can be
€750m in bridge loan ► Minimum revenue of €50k
How is it accessed? refinanced at KKC terms.
guarantees will be made ► Profitable business prior to the
Companies can apply for the KKC
available for companies with a COVID-19 outbreak
through Rabobank, ABN AMRO, ING, de
small financing need (€10k up Volksbank and Triodos, as well as other
► Registered with Chamber of financiers accredited for the BKMB-C.
to €50k). Commerce (KvK) since 1 January
Companies can apply for the KKC until
2019
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
8 February 2021 COVID-19: EMEIA EY Government Support Package
8 Financing: TVL: Compensation Fixed Costs SMEs/
TVL: Tegemoetkoming Vaste Lasten MKB
Last update: 25 January 2021
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 quarterly Similar to the TOGS, the TVL will be
measure called TVL, which was in sectors that experience the most compensation for fixed costs of max. exempted from tax.
revised in January 2021. TVL significant COVID-19 impact from 1 €330k (was €90k) for SMEs, €400k for
Calculation: Normal revenue x Revenue-
was initially aimed at supporting June 2020 until 1 July 2021. non-SMEs (>250 employees) with a max.
loss in % x Part fixed costs SBI in % x
Dutch SMEs in sectors that of €800k, starting from 1 January 2021
To be eligible for TVL, companies must Subsidy percentage of 85% = Subsidy
until 1 July 2021.
experience the most significant meet the following criteria: height.
COVID-19 impact, but extended The value of the TVL is determined on a by
► Revenue loss of >30% as a result of To receive the stock-subsidy, closed
to larger companies. company basis, depending on the loss of
COVID-19 is required to be eligible retail companies do not need to submit
revenue as a result of COVID-19 with
a separate request next to TVL.
► Fixed costs must be at least €3,000 2019 as a revenue-benchmark. and on the
As of Q1 2021, eligible Dutch and calculated based on a share of the fixed costs that the company
companies can receive a total percentage attributed to the SBI would have been able to cover with the
Additional compensation
quarterly compensation of up to classifications (cabinet researched lost revenue. The extra costs for the TVL extension
€330k (SME) or €400k to the possibility to release this are estimated at €3.8b, total support
For Q1 2021, the subsidy percentage is
threshold); compensation for fixed €7.6b.
€800k (larger companies) from costs is increased to 85% (previously
increased to 85% depending on the loss in
1 January 2021. In order to revenue. Compensation percentages are The government will make €51m
50-70%) for Q1 & Q2 2021
raised and the maximum-compensation is available for:
further support small ► Initially only for SMEs with 250 employees 2021), the employee-boundary is released organizers and suppliers in the
events
for Q1 2021. ► Founded prior to 15 March 2020
and the minimum subsidy for small-
companies is increased. The share of fixed
► Office/location in the Netherlands costs (%) will be determined as an average
Sector restrictions are (min. 1 location has an address that per sector.
temporarily not applied to these is different from the owner’s private
periods. Additionally, address) How is it accessed?
entrepreneurs and suppliers in ► Not bankrupt and no deferment of Companies can apply online with the
the events industry, who do not payment has been requested with government directly for the TVL
exceed the loss of revenue the court compensation.
threshold and received TVL For more information
Applying for TVL Q4 2020 is to be
before, can still apply for the requested until 29 January. Companies Ludovic Beukers
compensation in both periods. must apply each quarter separately. ludovic.beukers@nl.ey.com
TVL Q1 2021 is to be requested from +31 (0)621252378
February 2021.
8 February 2021 COVID-19: EMEIA EY Government Support Package
9 Financing: Guarantee scheme agricultural loans /
BL: Borgstellingskrediet Landbouw and Qredits
Last update: 25 January 2021
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
Companies can apply for this through
COVID-19. banks.
under the Guarantee scheme one of the banks (ABN AMRO, Deutsche
As per an announcement on 10 April, % guar- Bank, ING, NIBC, Rabobank and Triodos
for agricultural loans (BL, BL- Max. loan
antee
Commission
Plus and VVK), to include a the BL-C scheme is also available for Bank) who will apply at the government.
fishing and aquaculture (production and BL-C €1.5m 70% 0.5-2.25% Potentially other banks can apply this
bridge loan guarantee, the BL- processing) businesses, retrospectively scheme if approved by the Ministry of
BL €1.2m 70% 3.0%
C, for agricultural, fishing and from 18 March 2020. LNV.
BL-Plus €2.5m 70% 3.0%
aquaculture businesses. BL-Plus is an additional facility for The cabinet’s Q1 2021 announcement
VVK €2.5m 90% 1.0%
companies focusing on durability or to increase TVL is not applicable to
innovation and VVK is for asset Max. term of 4 years for the temporary agri- and horticulture due to European
enhancing credits, i.e. shortly after a BL-C, 6 years for BL and 12 years for laws. The cabinet strives to equalize
takeover or the start of a business. VVK/BL-Plus. Either a linear or bullet this and make TVL available in
repayment schedule. April/May 2021 retroactively for Q1
2021.
The EZK introduced additional Who is eligible? What does it cover? Practical considerations
support in the form of loan
repayment deferral and a Starting and existing entrepreneurs in Qredits provides liquidity support in the Companies will need to review how to
the impacted industries. short-term for small businesses and demonstrate their credit strength.
significant interest discount freelancers in need of capital. Interest margin for the first year is 2%
for current borrowers of 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
Qredits, a provider of
freelancers in the short term. This may application procedure, i.e. assessment Accessed by contacting Qredits’
microcredits to start-ups and be partly existing Qredits entrepreneurs of business plan, prior year financials emergency line directly.
small businesses. and partly new Qredits clients for and forecast.
On 8 April additional budget for Qredits
In Q1 2021 it was decided to bridging credit, who already have a
The maximum amount is €25k and the was announced to provide new loan
provide the full €70m for (bank) loan elsewhere.
maximum term is 5 years, at 2% in the facilities against lower interest.
starting businesses-aid via Furthermore, the Time-Out- first year and 5,75% afterwards.
Qredits instead of it being Arrangement -credit facility (TOA) is Postponement of repayment for 6 or
divided among COL-facilities added in Q1 2021, in order to prevent 12 months can be realized and during For more information
entrepreneurs going bankrupt as a this period an interest rate reduction of
(€20m) and Qredits (€50m). result of debt and payment arrears. 2% will be applied. Ludovic Beukers
ludovic.beukers@nl.ey.com
8 February 2021 COVID-19: EMEIA EY Government Support Package +31 (0)62125237810 Financing: Additional support measures announced
Last update: 25 January 2021
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 announced.
adequate solution, such as
mid-sized and large ► Bridge loan for non-bank financed ► Non-bank financed companies who ► Financing will be provided through
enterprises, and companies companies (COL) are impacted by COVID-19 and who regional development agencies
financed with (external) ► Government budget €100m
are financed with (external) equity (‘ROMs’)
equity who are unable to or venture capital (incl. startups and
initially, extended with €200m on
scale-ups), and SMEs financed with
receive bank financing (incl. 28 May 2020; and €150m on 28
retained earnings
startups and scale-ups). August 2020
►The third block of
COL ans ended on
1 October 2020.
► Postponed phasing out of the ► Current users of the Growth Facility
Growth Facility (Groei Faciliteit, GF), (GF)
a facility that provides financiers a
50% guarantee on subordinated
loans and shares of investment
firms, by 1 year to 1 July 2021
► Deferred payment of interest and ► Current users of the VFF and IK
debt redemption on Early Phase (innovative and early-stage For more information
Financing (Vroegefasefinanciering, entrepreneurs) that are affected by Ludovic Beukers
VFF) and Innovation Credit COVID-19 ludovic.beukers@nl.ey.com
(Innovatiekrediet, IK) by 6 months (1 +31 (0)621252378
April until 1 October 2021)
8 February 2021 COVID-19: EMEIA EY Government Support Package11 Cash flow measures: Deferral of tax payments
Last update: 8 February 2021 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 July 1st, 2021 applicable for three months or longer if no later than October 31, 2021, following
expected to have payment problems
companies that expect to have caused by COVID-19 and request is certain conditions were met. As of July monthly instalments. In case it can be
payment problems caused filed before July 1st, 2020. 1st 2021 all COVID-19 extensions will demonstrated by the taxpayer that it is not
by COVID-19 can request to come to an end. possible to start repaying in October 2021, it
is possible to defer this repayment date.
defer certain tax payments for However, the entire tax debt needs to be
3 months. It is possible – under How is it accessed? The repayment of those deferred repaid no later than October 1, 2024.
certain conditions - to obtain amounts of tax will start October 1st,
CIT, PIT, Health Insurance Act, VAT, Important to note is that in a letter of January
additional payment extension wage tax: after receiving a tax 2021. To repay the tax debts as of 21, 2021 the Dutch government mentions
until July 1, 2021. To repay assessment (of either one of the October 1st, 2021 a repayment period that when entrepreneurs do not fulfil their
the tax debts as of October mentioned taxes), the request can be of maximum 36 months, with equal new tax payment obligations that arise after
monthly instalments, will be granted. the payment extension period ends, they are
1st, 2021 a repayment period filed with the Dutch tax authorities using
a central P.O. box or digital form. The Collection interest of 0.01% will be at risk to be no longer eligible for the
of maximum 36 months, with
request applied automatically. One charged until December 31, 2021. repayment plan.
equal monthly instalments, will request was sufficient to request
be granted. For customs duty and other taxes paid Another important point to mention is that
deferral of payment. the collection interest will be reduced to
upon import:
Gambling tax, insurance tax, landlord tax 0.01% until December 31, 2021. If the
These repayment , environmental taxes and excise ► Regular payment extension (for duration of the reduction of the collection
arrangements do not apply to duties (coal tax and excise duty only January 2021) with Covid19 as valid interest will not be extended, it might be
justification could be requested up
customs duty and to VAT, domestic transactions): receiving a tax possible that collection interest will be levied
assessment, the request for that to 15 February 2021. during a part of the repayment plan. Under
excise duty (including on non-
alcoholic beverages) and coal concerning tax assessment can be filed ► Payment extension should however normal circumstances the collection interest
with the Dutch tax authorities using a be accompanied by setting a amounts 4%.
tax to the extent these taxes central P.O. box or digital form. The corresponding bank guarantee
are levied upon import request applies automatically.
► The bank guarantee requirement
BPM (tax on passenger cars and may only be waived in case of severe
motorcycles: economic or social distress and will
applicable as of the tax period May 2020 be reviewed on an individual basis For more information
after receiving a tax assessment. Roxana Bos Schepers
roxana.bos@nl.ey.com
Customs duty and other import taxes: no
Tel: +31 (0) 6 2908 3317
special payment extension
program available, but the regular Ilona van den Eijnde
payment extension program may be
ilona.van.den.eijnde@nl.ey.com
applied for.
8 February 2021 COVID-19: EMEIA EY Government Support Package
Tel: +31 (0) 6 2125 147512 Cash flow measures: Other cash tax management (I)
Last
Lastupdate:
update:25
26January
May 2020
2021
The Government has Tax and collection Practical considerations In case the amount of the
discount is set at close to nil due
announced that the interest Until October 1, 2020 tax interest to the lowered rate to 0.01%,
collection interest will be The reduction of collection was reduced from 4%/8% to taxpayers can file an objection.
reduced to 0.01% until at interest is introduced as a tax 0.01%. The discount will then be
least December 31st, 2021. measure to provide financial According to the decree this will determined based on the
support to companies that not apply to collection interest in collection interest rate of at least
The tax interest was have or are expected to have case of a refund of collection 4%. This is applicable as of March
reduced to 0.01% until payment problems. interest by the Dutch tax 23, 2020.
October 1st, 2020. As of However, since this reduction authorities to the taxpayer. In
October 1st, 2020 the tax applies to all taxes, we expect case of a refund of collection
interest will be 4% (also for that all taxpayers who are interest, the regular rate applies
liable to Dutch taxes are which amounts to at least 4%.
CIT).
eligible 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 is 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
8 February 2021 COVID-19: EMEIA EY Government Support Package13 Cash flow measures: Other cash tax management (II)
Last update: 25 January 2021
The Government allows Deferral of settlement energy tax and Practical considerations For more information
energy suppliers and SDE Please note that when a taxable Bastiaan Kats
taxable users to settle the After consultation with the energy suppliers, person does not meet the conditions
bastiaan.kats@nl.ey.com
energy tax and surcharge the Government approved that the energy for this arrangement, he can still
durable energy and climate suppliers are allowed to settle the energy tax request for deferral of payment of Tel: +31 (0) 6 2908 3773
and the SDE, inclusive of VAT, for the supply of energy tax and SDE as described in
transition (SDE), inclusive of slide 11.
natural gas and electricity in the months of
VAT, with respect to the April, May, June, July, August and September
supply respectively usage of 2020, at a later time than usual but no later In connection with the foregoing, for
natural gas and electricity than January 1st 2021. some specifically mentioned energy
for the months April, May, tax and SDE refund schemes, the
This approval applies in four situations. government has, under conditions,
June, July, August and extended the period within which the
September 2020 at a later refund for the period April up to and
The first two situations basically
time than usual but no later concerns supplies for which the energy supplier including September 2020 must be
than January 1st 2021 does not invoice advance payments or, if requested until 13 weeks after
under certain conditions. nevertheless invoices for advance payments, December 31st 2020.
the reconciling invoice relates to a calendar Furthermore for the situations that
month. The basic principle here is that the invoices are not paid (uncollectible /
This measurement will not energy supplier does not charge energy tax and bad debts) specific arrangements are
be extended. SDE, inclusive of VAT, to the concerning made.
customers on invoices and in payments for
supplies in April, 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
8 February 2021 COVID-19: EMEIA EY Government Support Package
situation the energy tax and SDE become due
on 31 December 202014 Cash flow measures: Other cash tax management (III)
Last
Lastupdate:
update:25
26January
May 2020
2021
The government Corona-reserve Practical considerations For more information
introduced a measure In determining the taxable profit for We do note that the loss expecting to Roxana Bos Schepers
in order to effectively 2019, companies will be able to take a loss into incur in 2020 needs to be determined
roxana.bos@nl.ey.com
carry-back expected account they expect to incur in fiscal year 2020. carefully. If the amount of
losses in 2020 to 2019. the expected loss is larger than the Tel: +31 (0) 6 2908 3317
This loss compensation can normally only take
amount of the final loss determined in
place upon filing the 2020 Dutch corporate
the tax return of 2020, the 'corona-
income tax return, which will be no earlier than
reserve' taken into account in the
early 2021.
2019 corporate income taxation will be
The Dutch Government will make it possible for amended. This will result in corporate
companies to deduct the expected loss due to the income tax 2019 due with possible
COVID-19 crisis for the year 2020 from the calculation of tax interest.
taxable profit of 2019 as a ‘corona-
It is important to note that by forming
reserve’. When you already paid a
the 'corona-reserve' the taxable profit
preliminary corporate income tax assessment
of 2019 will be lowered. This lowering
2019, this measurement results in a direct tax
of the profit will result in a lower
refund.
EBITDA and will therefore have other
The corona-reserve may not exceed the 2019 tax consequences. For example, the
profit before considering the reserve. In addition, deductible interest under the
Other than the the corona-reserve may not exceed the expected earningstripping (ATAD 1) and the
government measures, loss as a result of the COVID-19 crisis in 2020. 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) providing incorrect or incomplete
now expect lower profits in 2020 as a result of information when requesting a
COVID-19, it may be possible to amend the preliminary tax assessment or a revision
preliminary tax assessment and get a refund of tax of a preliminary tax assessment.
already paid.
8 February 2021 COVID-19: EMEIA EY Government Support Package15 Personal income tax measures
Last
Lastupdate:
update:25
26January
May 2020
2021
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
The legislative proposal excessive Tel: +31 (0) 6 2908 3317
deduction (‘’zelfstandigenaftrek’’), can only be claimed if the
unwanted borrowing from an own company
‘hours criterion’ is met. This hours criterion is in principle met
consequences due to (‘’Wet excessief lenen bij eigen
when the entrepreneur spends at least 1225 hours (for start-ups
the corona-crisis. vennootschap’’) will be postponed
800 hours) per calendar year on activities for his business. To
for one year until 1 January 2023.
prevent entrepreneurs from losing the right to claim these
The proposal regards the taxation
facilities, the Dutch Tax Authorities will assume that these
of the debts of an individual
entrepreneurs have spent at least 24 hours (for start-ups 16
business owner owed to the own
hours) a week on their business during the period 1 January
company that are higher than
2021 up and until 30 June 2021, even if they did not actually
€500,000 (excluding qualifying
spent those hours. This is an extension of the measurement.
owner-occupied home debt). By
For entrepreneurs who have seasonal work, such as festival postponing the entry into force by
industry, the Dutch Tax Authorities will assume during the period one year until 1 January 2023,
period 1 January 2021 up and until 30 June 2021 that these individual business owners have
entrepreneurs have spent the same number of hours as the until 31 December 2023 (first
normally do in 2019 in the same period. 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. When this deferral regards a period up to 12 months,
the government introduced, under conditions, 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.
Additional conditions apply to 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.
This measure ends on June 30, 2021.
8 February 2021 COVID-19: EMEIA EY Government Support Package16 Administration: Indirect Tax – Global Trade /
Customs
Last update: 9 October 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
► Late compliance may be excusable, gear 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
► Flexible approach to penalties for
compliance. trader license, i.e. an Authorized
late payments or late compliance Practical considerations
Economic Operator (AEO) license for
The Dutch Customs AEO 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
possible to file late apply.
for personal protective gear for the
customs duty exemption for import 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
personal protective gear may require an individual import license
used for medical disinfectant gels
or approval, which may be obtained
(non-commercial only). ► Reduction or full exemption of bank with retrospective effect.
guarantees
All other measures are based on
► Extension of current license individual circumstances and should be
applications that cannot be accessed/discussed by contacting the
completed 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 For more information
AEO licenses
Ilona van den Eijnde
ilona.van.den.eijnde@nl.ey.com
Tel: +31 (0) 6 2125 1475
8 February 2021 COVID-19: EMEIA EY Government Support Package17 Indirect Tax – VAT
Last update: 8 February 2021
The Dutch Ministry of Finance 1. No VAT on the supply of 2. No VAT on the free supply of 5. Lower VAT rate for online
have issued a Decree that medical staff medical 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 ► All fitness centers/gyms and
the COVID-19 virus. supply of medical staff to free supply of Covid-19 medical similar businesses
hospitals and other designated supplies. What does it cover?
Under this Decree, the measures (medical) facilities.
THIS FACILITY ENDED ON 31/12/2020. The measure applies to all fitness
regarding the supply of staff and What does it cover? centers and similar businesses that
3. Supply of (medical and non-
Covid-19 medical supplies are offer paid on-line classes. Even though
The measure applies to all medical) surgical masks VAT
applicable/in force from 16 business supplying staff to the exempt with credit
technically the lower VAT rate only
March 2020 up to and designated facilities, as long as applies to granting admission to these
Who is eligible? classes, the Decree allows
including 30 September 2020. the following requirements are
met: the application of the lower VAT rate
This was extended to 30 June ► All businesses selling such masks
(currently 9%) to on-line sports
2021 for the supply of medical 1. The medical staff is supplied What does it cover? lessons as well.
staff. to certain well-defined
The measure applies to all supplies
organizations and 6. Lower VAT rate for the supply
The measure regarding the institutions; of medical and non-medical surgical of cotton swabs
masks. The VAT exemption with credit is
application of the lower VAT rate 2. The supplier must include the The Ministry of Finance published a
applicable to supplies from 25 May 2020
is applicable from 16 March use of this special measure on until 31 December 2020. It was extended clarification about the application of
2020 until the obligatory closure his invoices and ensure that it to 30 June 2021. the lower rate to the supply of cotton
ends. is included in his records; and swabs used for COVID-19-testing. This
4. The supply of COVID-19 test kits and is not a new rule but, as said, a
Another Decree allows 3. The consideration for the vaccines are exempt with credit clarification of the term 'medical
supply cannot exceed the equipment'.
businesses to apply a VAT gross labour costs plus a Who is eligible?
exemption with credit (zero rate) maximum of 5% for admin. • All companies involved in the supply of
to supplies of (medical and non- VOVID-19 vaccines (that are cleared
medical) surgical masks from 25 Practical considerations by EMA) and COVID-19 test kits (if
The exempt turnover generated meeting the relevant requirements in
May 2020 until (at least) by the supply of staff under this For more information
LINK and LINK)
September 2020. This measure approval does not affect the VAT Jeroen Bijl
was also extended 30 June deduction position of the This exemption applies from 21 December Jeroen.bijl@nl.ey.com
2021. supplier. 2020 until 30 June 2021. Tel: +31 (0) 6 2125 1839
8 February 2021 COVID-19: EMEIA EY Government Support Package18 Employment support – labor law
Last update: 2 February 2021
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 July on the loss of turnover and can Employment Services (in Dutch:
temporary measure to help 2021. In the first period, from 1 October be up to: ‘UWV’).
mitigate the financial to 31 December 2020, employers with a
loss in turnover of at least 20% are eligible 1. 80% of employee costs in the Application for the second period of
consequences of Covid-19
for the wage subsidy. The term for filing of period 1 October until 31 the NOW 3.0 can be submitted from 15
for employers and stimulate the first period has been expired. Filing for December 2020 (turnover February 2021 until 14 March 2021.
keeping employees the second period will start as of 15 loss at least 20%); The payments of the advance should
employed during this time: February 2021 until 14 March 2021. 2. 85% of employee costs in the then be made within 2 to 4 weeks
the Temporary Emergency Applications for the third period can be period 1 January until 31 following the date of application.
filed as of 17 May 2021 until 13 June March 2021 (turnover loss at
Bridging Measure for Practicalities
2021. least 20%);
Sustained Employment
3. 85% of employee costs in the Employers may need to inform the
(‘NOW 1.0’). The NOW 1.0 As opposed to the reduction in period 1 April until 30 June works council, staff representation
applied for a period of 3 compensation, there is the possibility of 2021 (turnover loss at least and/or employees about the NOW
months (application gradually reducing the wage bill without 20%). application.
affecting the subsidy.
between March 2020 and
After the initial assessment of the Restrictions to the payment of
May 2020). After an initial If the employer is part of a "group", the application, the employer will dividends and bonuses and the
period of 3 months, the (loss of) turnover of the entire group is the receive a payment in advance of (re)purchasing of own shares may
NOW has been extended by basis for the NOW application. Above a (expected) at least 80% of the apply.
4 months (application certain subsidy limit, restrictions apply to expected total subsidy, paid in
the payment of dividends to shareholders, multiple instalments. The actual Employers will need to substantiate
between June 2020 and
the payment of bonuses to executives of amount of subsidy the employer the loss of turnover.
August 2020). the employer and the group, and the is eligible for is determined
(re)purchasing of own shares. afterwards, based on the final Companies with "larger" applications
The NOW has been (turnover) figures and (i.e., if the advance payment is EUR
extended again for 9 If a group has incurred a loss of turnover compliance with the obligations. 25.000 or more, or if the final
of less than 20%, an operating company Consequently, employers may subsidy is EUR 125.000 or more),
months until June 2021.
with a loss of turnover of at least 20% may receive additional payments or will have to submit an audit report or
also apply for the NOW. have to repay (part of) the other expert statement with the
advance. application for the final
The employer has the obligation to determination of the subsidy.
encourage and enable their employees to The discount applied in the NOW
receive further education and/or training. 2.0 scheme at the time of For more information
dismissal due to business Huub van Osch
economic reasons will not apply huub.van.osch@hvglaw.nl
8 February 2021 COVID-19: EMEIA EY Government Support Package under the NOW 3.0. Tel: +31 (0) 6 5544 204819 Employment support: Self-employed workers
Last update: 1 February 2021
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 until April1st , 2020 have to be reimbursed.
overbruggingsregeling 19 and who do not earn the social (Tozo 3);
Support is also possible via a working
zelfstandige ondernemers) minimum income anymore.
The benefit is capped at the social capital loan, of up to €10,517.
concerns temporary Eligible for the compensation are the minimum income of €1,536 net Maximum duration of the loan is 3,5
support for self-employed self-employed workers who: (married) and €1,075 net (individuals). years.
workers so they can ► Are over 18 years; Tozo 4 will be applicable until July 1st ,
continue their business. ► Are Dutch residents with a Dutch
2021. Details will be announced at a
later stage
resident company;
► Are registered at the Chamber of How is it accessed?
*also available for other Commerce;
The scheme is executed by local
entrepreneurs / DGA’s Cross border
► Are having all required permits in municipality
under certain conditions place; Self employed workers who reside
The total compensation depends on the
in the Netherlands and operate
► Started their business prior to 17 personal position (e.g. household
their business in another EU
March 2020 and were registered at composition) and applicants may be
member state could also be
the chamber of commerce; requested to provide further insights on
eligible.
family composition;
► Meet the hours worked criterium
Self employed workers residing in
(2019); Additional information on the company
another EU member state and
may be requested.
► Have an active business (or non operating their business in the
active due to COVID-19); Applicants should declare that their Netherlands could be eligible. To
income for the application period, does be applied for via the DTA in
► Would not fall under one of the
not meet the social minimum due to Maastricht.
exemptions for the ‘Participatiewet’
COVID-19 and/or the company is facing
coverage;
liquidity issues due to COVID-19.
► Are not involved in any
liquidation/suspension of payment
procedure; For more information
► Reside in the municipality where they Marcel Teeuwen
apply for the additional support. marcel.teeuwen@nl.ey.com
.
Tel: +31 (0) 6 2908 3470
8 February 2021 COVID-19: EMEIA EY Government Support Package20 Employment support: gebruikelijk loon (‘customary
wage’)
Last update: 1 February 2021
The customary wage Who is eligible? What does it cover? How is it accessed?
(gebruikelijk loon) which a A Director/substantial shareholder ► The customary wage (gebruikelijk ► The loss in turnover should be at
Director/substantial needs to derive a minimum employment loon) will temporarily (2021) be least 30% and the 2019 and 2021
income from his company for payroll lowered for companies impacted by turnover should not be impacted with
shareholder needs to
and income tax purposes. Payroll tax COVID-19. incidental costs/loss of turnover
receive from the company needs to be withheld on this customary other than COVID-19 impact
can be lowered ► The customary wage will be lowered
wage or ‘gebruikelijk loon’
in accordance with the decrease in ► The current account ‘rekening
turnover, for which a comparison is courant’ with the director/substantial
made between the calendar year shareholder should not increase due
2021 against the calendar year to the lower customary wage
2019.
► In case the director/substantial
shareholder actually received a
higher wage from the company than
is required based on this measure,
the higher wage needs to be
considered for taxation
► The customary wage will be lowered
in accordance with the decrease in
turnover, for which a comparison is
made between the calendar year
2021 against the calendar year
2019.
► Measure can be applied by the
director/substantial shareholder in
the payroll administration
For more information
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
8 February 2021 COVID-19: EMEIA EY Government Support Package21 Employment support: onboarding requirement
Last update: 1 February 2021
The Dutch tax authorities Who is eligible? What does it cover? How is it accessed?
will be more Employers hiring and onboarding new ► The Dutch tax authorities indicated Measures can be applied by employers.
accommodating towards employees need to fulfill administrative that they will be more
requirements for payroll taxes that due accommodating towards employers
employers' administrative
to COVID-19 measures sometimes that cannot meet their
payroll taxes requirements cannot be met. administrative payroll taxes
for onboarding employees. requirements for onboarding new
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.
► The provisions apply until July 1st ,
2021
For more information
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
8 February 2021 COVID-19: EMEIA EY Government Support Package22 Employment support: cross border employment
Last update: 1 February 2021
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 account for determining the multiple
Switzerland. state workers’ social security
not be taken into account position.
for determining the 25% In accordance with the EU directive on
condition for social security social security these multiple state ► Rules will be applied as if working
workers are required to pay social from home due to COVID-19 has not
purposes. security in their home country when occurred.
working there at least 25% of their time
Due to COVID-19 the social security What does it cover? How is it accessed?
position of multiple state workers
therefore may change due to working ► The Netherlands and Germany Dutch resident employees that work in
from home. agreed that a change in Germany may receive a net German
The Dutch tax authorities employment pattern due to COVID-19 state benefit. The
clarified tax positions for COVID-19 does not impact Netherlands and Germany agreed that
cross border commuters Who is eligible? taxation on the employee's the Netherlands will exempt this benefit
employment income. Taxation from taxation.
Dutch resident employees working in will be levied in accordance with
Belgium or Germany could be the 'regular' working
confronted with Dutch taxation on their How is it accessed?
pattern. Employees, however,
employment income whilst working may choose to apply the tax Measures can be applied in line with
from home (or the other way around for treaty rules and possibly have regular rules on (wage) tax filings.
Belgium or German residents working in their employment income taxed
the Netherlands). Authorities have in the resident state whilst
taken measures to mitigate the COVID- working from home. The
19 'working from home' impact on agreement applies till mutual
taxation on employment income. termination
For more information
► Measures apply until 30 June
Marcel Teeuwen
2021.
marcel.teeuwen@nl.ey.com
► The Netherlands and Belgium Tel: +31 (0) 6 2908 3470
have made similar arrangements
COVID-19: EMEIA EY Government Support Package
that apply till 30 June 2021.
8 February 202123 Employment support : Work related Cost Scheme
Last update: 1 February 2021
This sheet provides for an Who is eligible? How is it accessed? Practicalities
overview of employment The tax free budget over the first Employers should designate the ► Employers should conclude an
support while employees 400,000 Eur of taxable wages has been paymengt for ‘something extra’, ICT- agreement with their employees
are working from home. increased from 1,7% to 3% for tax year equipment and/or the health and safety when they provide the employees
This concerns existing 2021 (like in 2020). facilities as work-related costs (under with for example a laptop. The
specific exemption) in their WRCS agreement should include that the
legislation that may be The government’s intention with this
administration. employee will return the provided
relevant now due to measure is to enable employers who
equipment or pay the residual value,
working from home want to provide their personnel ‘with Both employee and employer
if the equipment no longer meets the
something extra’ free of tax. This could therefore benefit from the tax free
because of COVID-19. for instance include allowances for facility.
legal conditions. This should be
assessed for example when the
additional costs due to working from
The claim should be made at the COVID-19 crisis is over and
The tax free budget for the home during the pandemic.
moment when the equipment is employees return to their usual
Work Related Costs scheme The Work Related Cost Scheme (WRCS) provided to the employee. workplace at the office.
has been increased from also allows certain IT related equipment
► If an employer asks for an allowance
1,7% to 3% over the first to be provided to employees tax free
when providing the laptop, the
400,000 Eur of taxable (including an allowance for internet
‘necessity criterion’ is not met and
costs) as long as the equipment is
wages. required to perform the job, i.e. the
the specific exemption cannot be
applied.
‘necessity criterion’
There is also a specific exemption for
the provision of equipment for health
and safety purposes
(arbovoorzieningen) per the Working
Conditions Policy (Arboplan), e.g. a desk
and an office chair can be provided to
ensure an ergonomic workplace at
home.
For more information
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
8 February 2021 COVID-19: EMEIA EY Government Support Package24 Employment support: Travel allowance
Last update: 1 February 2021
This sheet provides for an Who is eligible? What does it cover? How is it accessed?
overview of employment Whilst working from (or staying at) ► Tax authorities approved that COVID- Employers may apply the regular rules
support while employees home employees do no longer make 19 changes in travel patterns will not for tax free payout of home – work
are working from home. travel expenses and employees could be impact taxation on travel allowances travel allowances including the fixed
This concerns existing confronted with taxation on the for home – work. Travel expenses travel allowances.
legislation that may be travel allowance that they receive for can be reimbursed in accordance
home – work travel expenses (where with the regular rules and COVID-19
relevant now due to employers continue payout). 'home' days can be regarded as
working from home travel days in accordance with the
because of COVID-19. regular working pattern until April 1st
This exception is only applicable for , 2021
employees who were already entitled to
Taxation on home-work a fixed travel allowance before 13
travel allowances not March 2020. For other employees and
impacted by COVID-19 new employees, hired from 13 March,
this exemption is not applicable. Only if
these (new) employees meet all the
conditions of the fixed travel allowance,
including the number of days traveled
to the fixed working location, the fixed
travel allowance can be paid free of tax.
For more information
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
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