Nieuws

18 maart 2020

Dear client,

 

The Coronavirus causes a hectic time. Many businesses are affected by this virus and the economic effects will be enormous. Therefore, the Dutch government decided to help the businesses where possible. These measures are updated on a daily basis. HLG stays up to date of these measures, which are summarized below.

If there are any questions or if you need any help, do not hestitate to contact us.

 

CORONA MEASURES

 

TAX-RELATED

DEFERMENT OF TAX PAYMENT

If you have payment problems as a result of the corona crisis, we can submit a request to the Tax and Customs Administration for special deferment of payment. This deferment of payment is possible for income tax, wage tax, turnover tax and corporation tax. The Tax and Customs Administration grants a deferment of payment if we can make a case that you have run into payment problems as a result of the corona crisis. In this request, we have to state that:

  • there are actual, acute payment problems (and not, for example, payment problems that will arise in the future);
  • the payment problems are temporary;
  • you can solve the payment problems before a certain time;
  • the company is viable.

We can draw up this expert statement for you, but it can also be an external consultant, a sector organisation or a financial consultant.

 

 

DEFAULT PENALTY / INTEREST

The Tax and Customs Administration assesses the request for special deferment of payment on a case-by-case basis and, until that time, maintains the due date for collection. Interest on overdue tax, which normally has to be paid on a delayed payment, will be temporarily reduced from 4% to 0.01% from 23 March 2020.  As appropriate, the Tax and Customs Administration will reverse any default penalty.

The letter (there is still no standard form), including the expert’s statement and justification, should be sent to:

Belastingdienst
Postbus 100
6400 AC  HEERLEN

The Netherlands

 

The rates of the tax interest are also temporarily reduced:
– corporate income tax: as of 1 June 2020 from 8% to 0.01%;
– income tax: as of 1 July 2020 from 4% to 0.01%;
– all other taxes: as of 1 June 2020 from 4% to 0.01%.

 

AMENDMENT TO PROVISIONAL ASSESSMENT

If you have received a provisional income tax or corporation tax assessment and you expect a lower profit due to the corona crisis (and if so, how much?), we can fairly easily submit a request to amend that provisional assessment.

 

 


 

SOCIAL

SHORT-TIME WORKING / PART-TIME UNEMPLOYMENT BENEFIT

The scheme for applying for short-time working (WTV) – followed by the application for part-time unemployment benefit – has been withdrawn and, as of yesterday evening 17 March 2020, has been replaced by the scheme below.  WTV applications that have already been submitted will be considered as applications under the new scheme.

 

ALLOWANCE SCHEME ‘TEMPORARY EMERGENCY MEASURE: BRIDGING FOR EMPLOYMENT RETENTION’ (NOW)

This scheme is currently being drawn up and will be open to all entrepreneurs with staff who are facing a drop in turnover from 1 March 2020. The aim is to be able to deploy the allowance more widely and more quickly.
More widely: the scheme applies not only to permanent workers but also to workers on flexible contracts.
More quickly: the UWV will pay an advance (at least 80% of the requested amount) on the basis of the application. Afterwards, the actual loss of turnover will be assessed and, in the case of large amounts, an auditor’s report will be requested (details will be worked out in more detail). It is clear that the rapid payment will be accompanied by an administrative assessment after the fact.

Employers who are faced with at least 20% expected loss of turnover can apply to the UWV for a period of 3 months for an allowance for wage costs amounting to a maximum of 90% of the wage bill. Employers then pay 100% of the wages to the employees concerned.
The scheme may be extended once for a further three months, subject to further conditions.

 

As the name indicates, the starting point is that all employees will remain employed, and therefore no dismissals for business economic reasons will be requested during this period. The UWV is currently in the process of introducing the scheme; once it is known that applications can be submitted, i.e. not yet, this will be made widely known.

 

FOR THE SELF-EMPLOYED WITHOUT STAFF

Entrepreneurs/ the self-employed without staff can request a different kind of support for themselves, the implementation of which will be the responsibility of the municipality. Support can be applied for in the form of a supplementary living allowance and/or working capital allowance (a “Bbz-plus”).

The living allowance supplements the income up to the social minimum.
A working capital loan can be used to solve liquidity problems.

This temporary arrangement has the following elements:

 

  • The viability test (as it is known under the Bbz) is not applied, which makes it possible to process applications quickly;
  • This provides income support to cover living expenses within 4 weeks for a maximum period of 3 months. That can currently take up to 13 weeks. Advance payments may be used to get around this;
  • The maximum amount of income support depends on income and household composition and is approximately € 1,500 per month (net);
  • This accelerated procedure also applies to applications for a loan for working capital up to a maximum of € 10,157;
  • The income support for living expenses is provided ‘free of charge’, so the entrepreneur knows for sure that it will not have to be paid back later. There is no capital or partner test in this temporary scheme;
  • When a working capital loan is granted, an option to defer the repayment obligation is included;
  • When granting a working capital loan, a lower interest rate than currently applies in the Bbz will be used.

 

The Cabinet calls on independent entrepreneurs to make use of the scheme only if necessary [in our opinion this is an unnecessary request, because in practice we already notice a great reluctance to make use of the schemes more than is necessary]

 

 


 

FINANCIAL

EMERGENCY COUNTER

There will be an emergency counter, especially for those entrepreneurs who have been directly affected by the government’s measures to contain the coronavirus.
This specifically concerns: hospitality companies that have had to close down, and entrepreneurs who are no longer able to do their work due to the 1.5 meter distance requirement (e.g. beauticians, dentists, hairdressers, etc.). The background to the allowance is that income is decreasing and the fixed costs remain payable; therefore, an additional requirement is that there must be an office/workspace outside the owner’s home. The allowance scheme has yet to be worked out in more detail; however, it is clear that this is a one-off fixed amount of € 4,000.

 

EXPANSION OF THE GOVERNMENT GUARANTEE FOR SME Credits (BMKB)

As of today (16 March 2020), SMEs with liquidity problems due to the effects of the coronavirus can temporarily count on extra favourable conditions under the BMKB. A new temporary measure increases the size of the guarantee credit in the BMKB from 50% to 75%.
The measure is intended for a bridging loan or for an increase to the current account credit with the bank, with a maximum duration of up to 2 years. A number of other conditions in the BMKB will also be relaxed.

 

QREDITS

Qredits will receive a boost of up to EUR 6 million from the Cabinet to provide simple and limited loans to start-ups and small businesses.

 

OTHER

At the moment, various consultations are being held with the Association of Netherlands Municipalities, among others, to see whether measures are possible for the payment of, for example, municipal taxes and tourist tax.