Prolongation COVID-19 financial support packages
Due to the latest COVID-19 restrictions, the Dutch cabinet decided to renew or prolong their financial support program. For sole traders, business owners, and employees financially affected by the new measures, the cabinet secured funding for a new financial support package. The restrictions are expected to last until 14 January 2022.
Subsidy for employment expenses (NOW)
This measure (NOW-6), designed to sustain employment by supporting employers financially in the cost of employment, is available for the period January - March 2022. The subsidy is equivalent to the previous NOW support package.
Due to the coronavirus, you have less or no work for your employees. You can claim NOW for a compensation for their wages of 85%. This way you can pay you staff and keep them employed. The Employee Insurance Agency (UWV, in Dutch) will pay you an advance. You can apply for compensation of wages for employees with a permanent or fixed contract as well as for employees with a flexible contract.
Click on More info to read more about the NOW package or contact us for more information.
Financial support for sole-traders (TOZO)
Sole-traders, self-employed professionals, affected by the measures related to the coronavirus could receive an allowance to top up their income to the Dutch social welfare level. This package is re-activate for the period January to March 2022.
Are you a freelancer or self-employed professional in the Netherlands and in need of financial support? For instance because you want to start a business while you are on benefits?
Your municipality can offer you various forms of social benefit options under the Decree on Social Assistance to the Self-Employed (Besluit bijstandverlening zelfstandigen, Bbz). The Bbz offers loans, credits or low income supplements. Also, your municipality can offer you coaching free of charge.
As a business owner or self-employed professional (zzp'er) you may apply for the Reimbursement of Fixed Costs (Tegemoetkoming Vaste Lasten, TVL) if your business experiences substancial turnover loss due to the new measures during teh fist quarter of 2022.
This reimbursement is meant for companies (including the self-employed) that have suffered a turnover loss of at least 30% during 3-month periods to help them pay their fixed costs. Your fixed costs must be at least € 1,500 per quarter, based on your SBI code.
Please note: wage costs and other variable costs are not included. Wage costs are compensated through the NOW: Temporary Emergency Bridging Measure for Sustained Employment.
Pay taxes later
The special tax payment extension is extended once more for those who are unable to pay taxes due to COVID-19. You can request a special extension for your tax payment from the Tax office for tax assessments you receive before 1 February 2022. You can apply for this extension until 31 December 2021. You do not yet have to pay the taxes for which you are granted a special extension. But you must continue to file tax returns on time.
If the Tax and Customs Administration approves your request, you only need to start paying off the tax debt you have accrued up to and including 31 January 2022 starting 1 October 2022. You will have 60 months to do so. The Tax Office will inform you by post which scheme is available for you.
As of 1 February 2022, you can no longer get a tax payment extension. And you will have to start paying new tax obligations on time again.
Small business owners in need of financing as a result of the COVID-19 crisis may apply for the Small credit guarantee for SMEs (KKC) program. This program allows for financing between € 10,000 and € 50,000.
If your business needs more collateral to borrow money you may want to apply for the credit guarantee for SMEs (BMKB). This credit scheme increases your company’s collateral and thus the financing options of your company, now and in the future.