Next week, on 1 June (2020), the second emergency support package for entrepreneurs will start, as can be read today on the website of the Chamber of Commerce. The new package consists of adjustments to existing schemes and 1 new scheme. The package fits better with what entrepreneurs will need in the coming months. Among other things, there will be an allowance for fixed costs of up to 20,000 euros for SME's that suffer considerable loss of turnover due to the corona crisis. The NOW and the Tozo will be extended in a modified form. The dismissal penalty will disappear.
The government has earmarked no less than 13 billion euros for the second emergency package. This extra support package will help entrepreneurs to get through the period until the end of August. Now that we are no longer in the outbreak phase, but in the transitional phase of the corona crisis, it was necessary to adjust the package of regulations. Whereas emergency package 1 focused on, among other things, job retention and temporary bridging loans, the second package pays extra attention and allocates money for further training and retraining and allowances for the payment of fixed costs.
The aim is still to retain as many jobs as possible, but not all redundancies and bankruptcies can be prevented. This requires that entrepreneurs and employees can adapt to a changed Dutch society and economy, according to the Cabinet.
These are the adjustments from the second support package:
1. Tegemoetkoming Vaste Lasten mkb (TVL), the successor of the TOGS
From mid-June, this scheme will be the successor to the TOGS and is intended for SMEs that structurally suffer more than 30% loss of turnover due to the corona crisis. Companies that meet the conditions can receive up to 20,000 euros in compensation per 3 months in order to continue to incur fixed costs (excluding wage costs). Companies in sectors that qualify for the TOGS will soon be able to make use of the ATVL. A billion euros has been earmarked for the scheme. The ATV is implemented by the RVO. Applications are expected to be possible from mid-June, when the TOGS scheme expires. The ATV enters into force retroactively on 1 June and expires on 31 August. Read more about the new ATVL scheme here.
2. Tozo 1 becomes Tozo 2 and applies until the end of August.
The Temporary bridging scheme for self-employed persons (Tozo) will be extended by 3 months until the end of August, with modified conditions. The extended scheme is called Tozo 2. With the extension, entrepreneurs who currently receive a livelihood allowance and meet the conditions of Tozo 2 can receive a Tozo benefit until the end of August. The Tozo 2 is also open to new applications. An important difference with Tozo 2 is that the partner's income is now taken into account when determining the amount of the benefit. The partner's income test is carried out when you apply for the supplementary living support benefit. If the household income is above the social minimum, you are not entitled to this scheme.
3. NOW is extended
The NOW will also have a sequel next summer. The new version of this allowance for labour costs resembles its predecessor, but in the NOW 2.0 some conditions have been adjusted:
The dismissal penalty will be abolished. Companies that receive the NOW 2.0 will therefore no longer receive an additional reduction on their NOW subsidy if they lay off employees for business economic reasons. However, employers do receive a correction if they lay off personnel they receive NOW over.
Because the adjustment may lead to redundancies, the government is allocating EUR 50 million for retraining staff through the crisis programme NL learning by doing. Employers applying for the NOW must encourage their employees to undergo further training and retraining. Employers will make a statement on this at the time of the NOW 2.0 application.
The fixed (lump-sum) surcharge will be increased from 30 to 40 percent. In this way, the NOW also contributes to costs other than wage costs.
The reference month for the wage bill will be March 2020. In addition, in the NOW scheme that is already in effect, March will also be taken as the starting point if the wage bill in the months of March-May is higher than in January-March. This is important for seasonal businesses.
In addition, a company that makes use of the NOW for this year is not allowed to distribute profits to shareholders, pay bonuses to the board and management or buy back its own shares.
4. Postponement of tax payment extended to 1 September 2020
The Tax and Customs Administration grants a longer deferment of payment to entrepreneurs. Repayment is only required from 1 September onwards. Any default fines for not paying on time do not have to be paid. The tax interest and recovery interest for all tax assets has been reduced to 0.01% until 1 October 2020. Other tax measures from the first support package, such as a relaxation of the hour criterion for self-employed persons and the payment break for mortgage obligations, have also been extended until 1 September 2020.
5. Corona credit granting and guarantees to entrepreneurs continue
The additional, extended or more accessible lending and guarantees to small and medium-sized businesses, start-ups and scale-ups from the first emergency package are continuing. You can read more about this on our arrangements page.
If you have any questions about corona, please contact the KVK Coronaloket or call 0800 2117.