With the announced extension of the support package, an expected amount of 6 billion euros is involved. In total, the government has now allocated 80 billion euros to support businesses and workers during the corona pandemic.

The cabinet wants to help as many fundamentally healthy companies through the crisis as possible. On the one hand, it is a risk to continue support measures for too long because they make normal economic development more difficult. On the other hand, there is still much uncertainty about the near future and some companies have run out of their reserves. The support packages are designed to adapt: the more revenue loss, the more support. Conversely, as the economy opens up further and companies can generate more revenue, they will also grow out of the support packages.

The return to a healthy economy, with normal economic dynamics, is of great importance for the earning capacity of the Netherlands. In light of the current situation and developments, it has now been decided to continue the package in the third quarter. The cabinet will keep a close eye on the situation to respond to current developments as necessary.

The cabinet plans to extend the TVL (subsidy for fixed costs) and the NOW (wage support) into the third quarter. To better support starters, growing companies, and companies that have come under pressure with the regular reference period, companies will have the choice between two reference periods for the TVL starting from the second quarter. Additionally, the subsidy ceiling for large companies in the TVL will increase to 1.2 million euros for the second quarter. It is expected that the extension and adjustment will involve an amount of 2 billion euros. In the NOW, the new reference month will be February 2021.

The cabinet also proposes to extend Tozo (support for self-employed) and TONK (Temporary Support for Necessary Costs) in the third quarter. The focus of the Tozo will increasingly lie on supporting and stimulating entrepreneurs so they can stand on their own feet as quickly as possible. The repayment of the Tozo loan for working capital has been postponed by six months to January 1, 2022. No interest will be charged during that time. The term of the loan has also been adjusted, from 42 to 60 months. The Minister of SZW has asked the parties involved to apply the TONK generously and to increase its visibility and reach. Several large municipalities have already announced this.

The cabinet is also taking a number of measures to alleviate the debt burden of companies and improve their financial position.

Starting from NOW 3 (the subsidy periods from October 2020), the TVL will no longer count as revenue for the NOW. Many employers will receive more subsidy due to this change when applying for the definitive subsidy starting from NOW 3. This provides them with more breathing room and support to stand on their own feet again. An amount of approximately 1.5 billion euros is involved here.

Entrepreneurs may start later and take longer to repay the tax debt they have accumulated due to the corona crisis. They do not have to start paying until October 1, 2022, and they have five years for this. This was three years from October 1, 2021. Entrepreneurs are expected to start paying taxes again from July 1, 2021.

The conditions for repayment will also be further relaxed. The collection interest, an incentive to pay tax debts on time, will gradually return to the old level. This means that on January 1, 2022, the collection interest rate will be set at 1% instead of 4%, and will then gradually increase to 4% on January 1, 2024.

Currently, more than 250,000 entrepreneurs have payment deferrals for an amount of 16 billion euros. This has been one of the important measures to support entrepreneurs in a difficult time. Many entrepreneurs have already repaid (part of) their debts; in total, 36 billion euros in tax deferrals have been available. To prevent inequality among entrepreneurs, there will be no general cancellation of outstanding tax debts.

The cabinet wants to help viable companies for whom the above measures are not sufficient to continue. A flexible stance from the Tax Authorities helps entrepreneurs, especially if other creditors are also lenient. The cabinet is holding discussions with other creditors about this. To expedite this, roundtable discussions will be organized soon. Possible relaxations could include giving up the priority positions of different creditors.

Several other tax measures taken due to corona, such as the payment pause for mortgage obligations and the tax-free reimbursement of travel costs, will be extended until October 1, 2021.

Agreements have been made with the implementation organizations about lenient rules for repaying too much received government support. They will provide as much individual customization as possible.

Since the beginning of this year, entrepreneurs can use the Law on Homologation of Private Agreements (WHOA) to reach an agreement with creditors. This law helps entrepreneurs who have had to incur debts as a result of the crisis. In addition, the cabinet is making 200 million euros available for low-interest loans for SMEs to restart, expand, or adjust their business activities after a WHOA agreement. This TOA loan is part of a set of measures to enable companies to pick up the thread again after the crisis.

• The cabinet has extensively looked at additional possibilities for large (retail) companies. Overall, the cabinet chooses not to introduce a separate subsidy scheme for this. A new scheme is complex in implementation and very untargeted. To prevent bankruptcies of viable large companies, tailored support remains the best option.
• The credit guarantee schemes, such as the BMKB-C, KKC, GO-C, and the bridging loan scheme via Qredits, will be extended until December 31, 2021.
• The government will stop the supplier credit reinsurance scheme after June 30. Thanks to the favorable economic outlook, the scheme is no longer needed. Insurers will continue to provide coverage without the guarantee of the Dutch state, based on a thorough risk analysis.
• The support package for culture and the creative industry will continue in the third quarter of 2021, so that the cultural infrastructure remains intact and jobs are preserved. Direct support for cultural and creative independents is 25 million euros, and for BIS and heritage institutions, 45 million euros. An additional amount of 25.75 million euros is available for loans to open monuments.
• The support measures in the first and second quarters for sports and agriculture will generally be extended by one quarter.
• For zoos, the cabinet allocates 42.5 million euros for the period they were still closed in the second quarter of 2021. The amount is for ongoing costs, such as the care of the animals. Zoos are now open again, with due regard to necessary measures.

For questions about the support and recovery package for corona, companies and workers can check rijksoverheid.nl/steunpakket. Entrepreneurs can also visit the website of the Chamber of Commerce for more questions: kvk.nl/corona. If the answer to your question is not listed, call the advisory team at 0800 – 2117. Workers and job seekers can also go to hoewerktnederland.nl.

Entrepreneurs can register for the credit schemes with their credit provider, such as their bank. The wage cost compensation scheme (NOW) runs through the UWV and support for self-employed entrepreneurs (Tozo) through their own municipality. Compensation for fixed costs for SMEs (TVL) is through RVO. For tax measures, entrepreneurs can contact the Business Tax Authorities.