New expansion of support and recovery package

The government has decided to further expand the current support and recovery package and thus limit the loss of jobs and companies in the Netherlands. An additional 3.7 billion euros will be set aside to support entrepreneurs.

The austerity measures that were planned for January 1 have been taken off the table. The adjusted package will apply at least until March 1, 2021. The end date is still flexible and will depend on, among other things, the vaccination policy and whether there is still a (semi-) lockdown in the context of the fight against the coronavirus. This also means that the simplification of the NOW scheme – from 80 to 70 percent – will not go ahead. This also applies to the TOZO scheme for self-employed persons.

In addition, it was decided to expand the TVL scheme (Fixed Costs Allowance). As FHI previously reported, this is a popular and effective scheme for entrepreneurs. This provides compensation for companies that are struggling with high turnover losses, for example due to forced closure.

The TVL scheme can now also be applied for retroactively. This option applies until 1 October 2020 and the threshold for loss of turnover remains at 30 percent. However, the compensation does increase as the loss of turnover increases. If a company no longer has any turnover, 70 percent of the fixed costs will be reimbursed. This amount can amount to a maximum of 90,000 euros per three months.

There will also be a new government scheme – the Temporary Support for Necessary Costs (TONK) – for self-employed persons and flexible workers who are in need and who fall outside the existing support package. This group can now apply for income support from the municipality. The government is reserving 130 million for this for the first half of 2021. This scheme will start on 1 February.  

The cabinet is also extending the period during which entrepreneurs tax deferral or apply for an extension of the deferment until April 1, 2021. Entrepreneurs who have already been granted a deferment will automatically receive an extension until this date.

The additional support is provided by employers' organizations VNO-NCW and MKB-Nederland applaudedHowever, they also state that there is currently insufficient perspective offered for companies that are in dire straits.

If you as an entrepreneur want to use the support and recovery package, you can look further on the website of the National government. Questions can be asked via the Chamber of Commerce.