COVID-19: EY Government Support Package - The Netherlands 10 July 2020
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COVID-19: EY Government Support Package The Netherlands 10 July 2020
2 COVID-19: EMEIA EY Government Support Package
The Dutch government has decided to implement a series of economic measures designed to
protect people's jobs and livelihoods and to minimize the impact on self-employed people,
small and medium-sized enterprises and major companies.
The Dutch government indicated that under the announced measures, billions of euros will be
invested into the economy every month, for as long as necessary. According to the
government, the measures will ensure that companies are able to pay their employees'
wages, grant a bridging arrangement for self-employed people and allow companies to
manage cash through relaxed tax provisions, allowances and supplemental lines of credit.
Areas being addressed: These aims are primarily being delivered
through:
1. Providing liquidity through financing schemes
► Central Dutch government and the banking
2. Helping employers to protect jobs
system in terms of the guarantees and financing
3. Cash-flow support, including tax deferrals schemes that have been announced;
4. Administration, including governance ► The central tax system (covering cash tax
5. Legal considerations, including contract and deferral and employment support) as well as the
labor law considerations municipal tax system (for self-employed workers
and entrepreneurs); and
► The Customs Authorities in relation to the
relaxation of customs regulations and
compliance (however note the additional export
requirements for companies involved in the
production of personal protective equipment).
14 July 2020 COVID-19: EMEIA EY Government Support Package3 Dutch Government announced responses
Liquidity and financing Cash flow measures Administration
• Extension of the SME credit • Extension of the export credit • Possibility in the CIT to form a 'fiscal corona • Administrative penalties for late
guarantee (BMKB) scheme. insurance facility. reserve' in fiscal year 2019. payment of wage taxes or VAT will
• Possibility for substantial interest holders to not be imposed or waived if
• Extension of the Credit • Bridge loan guarantees for small
reduce the normal wage. imposed.
Guarantee scheme companies (KKC)
• Payment deferral mortage obligations.
for Agriculture (BL). • Administrative penalties for late
• Compensation Fixed Costs • Three months deferral of tax payments for
payment or late compliance with
• Extension of the business loan (TVL) wage tax, personal income tax, Health
excise and customs duty
guarantee scheme (GO Facility). Insurance Act, corporate income tax, VAT,
• Extension of the Dutch Trade regulations will not be imposed or
gambling tax, insurance tax, landlord tax,
• Addition of the GO-C Facility to and Investment Fund (DTIF) waived if imposed.
environmental taxes (a.o. energy tax, coal
further extend government
• Bridge Loan for non-bank tax, waste tax), excise and similar taxes of • Several measures relaxing wage
support with state guaranteed
financed companies through the Dutch Caribbean. tax and labour tax compliance
loans.
Regional Development Agencies • Reduction of tax and collection interest to requirements have been
• The government supports 0.01%. announced as well as several
• No phasing out of existing • Deferral of settlement of energy tax and SDE measures relaxing the strict
microcredit provider Qredits with
schemes Groeifaciliteit
EUR 25 million (increased from customs compliance requirements.
EUR 6 million). • Deferred payment of Early
• Relaxation of the hours criterion for
Phase and Innovation credits
self-employed workers.
Employment support Welfare Legal
• Temporary Emergency Bridging • The Netherlands agreed on • Compensation payment of EUR 4,000 to • Consideration of non-performance
Measure for Sustained taxation of employment income for certain businesses in affected sectors contractual obligations by invoking
Employment (''NOW''); cross border commuters (‘’TOGS’’). force majeure, unforeseen
Emergency fund to circumstances or the principle of
• Tax exemption for IT equipment • Compensation self-employed
compensate salary costs for reasonableness and fairness to find
and related costs, and office professionals to the social minimum (''Tozo'').
businesses that expect a 20% some relief from obligations.
equipment required for health and
decrease of turnover.
safety purposes for employees • Postponement implementation
• Working from home will not be working from home. legislative proposal excessive
taken into account for determinin borrowing from own company.
• More tax free work-related costs
g the 25% condition for social
budget.
security purposes.
14 July 2020 COVID-19: EMEIA EY Government Support Package4 Financing: BMKB: Guarantee scheme SME loans /
BMKB: Borgstelling MKB-Kredieten
Last update: 26 May 2020
The Ministry of Economic Affairs Who is eligible? What does it cover? Practicalities
and Climate (EZK) has Small or medium enterprises, i.e. those The government guarantee is up to 90% Companies will need to consider the
established a guarantee that meet the following conditions: of the total guarantee on the loan. The implications for the future and whether
scheme for SMEs on loans from other 10% is backed with a personal they currently need the increased loans.
► Companies with a maximum of 250
guarantee from the shareholder. Currently there is no end date for this
certain participating banks. employees
programme.
Aims to support SMEs that cannot offer
► Companies with yearly revenues
Until 16 March 2020 , the the financier enough collateral. More expensive than ordinary lending
below €50m
due to the government margin charged
guarantee loan will be up to The scheme also applies to bridging
► Companies with a balance total below on top of usual interest rate.
50% of the total credit, from 16 loans and overdraft facilities with a term
€43m
of up to 4 years (update 29Apr). Entrepreneurs need to submit a personal
March this has temporarily been The following sectors have their own guarantee for the remaining 10% of the
increased to 75%. The government will charge commission
supportive measures and so are not scheme.
to the bank at a rate of 2% (update per
eligible:
8Apr) for maturities up to and including 8 Companies need to provide a forecast
Currently there is no end date ► Individuals, quarters, which will then be passed on to and rationale for the banks to take on
for this program, or the the borrower. board the 25% of the loan which is
► Agriculture, fishery,
extension of the guarantee. uncovered.
► Public healthcare,
How is it accessed? Payments of dividends will be restricted
On 8 April 2020 the government ► Financial services, and whilst the guarantee loan I in place.
SMEs can apply for a loan from one of
has increased the available ► Real estate the participating banks who then apply to
budget from €765m to €1.5b. the government. Currently, these are
ABN AMRO, Deutsche Bank, ING,
Rabobank, Riverbank and Triodos Bank.
On 8 April 2020 the government opened
this facility also for non-bank financiers
who need to be accredited.
For more information
Ludovic Beukers
ludovic.beukers@nl.ey.com
+31 (0)621252378
14 July 2020 COVID-19: EMEIA EY Government Support Package5 Financing: GO: Guarantee Enterprise Financing /
GO: Garantie Ondernemingsfinanciering
Last update: 26 May 2020
The EZK has a guarantee Who is eligible? What does it cover? Practicalities
scheme, the GO facility, for The following conditions must be met: For companies facing difficulties in Usually the process for approval takes 2
large companies, The GO attracting bank loans. - 3 weeks on top of a regular banking
► Companies with substantial activity in
allows banks to receive a 50% process.
the Netherlands Loans (and potentially also RCF) with a
state guarantee on medium and ► Companies with no outstanding
term of up to 8 years. Early pre-payment of this guarantee is
large loans of up to €50m breach of covenants The GO allows banks to receive a 50%
possible only with make-whole penalties.
million, with a minimum of state guarantee on medium and large There may be restrictions on future
► The financing qualifies as Fresh
€1.5m. Money (i.e. new line of credit provided
loans. Loans of up to € 50 million are dividend payments whilst these loans are
guaranteed up to a maximum of € 25 in place.
by the bank).
million.
From 26 March 2020 the EZK ► No significant equity distribution in the
Banks will make a case-by-case
has temporarily increased the Guarantee premium is part of Interest assessment, requiring usual information
12 months before the application
size of individual loans which Margin and paid by the bank to the on business plan/forecast.
► Could be used for capex and/or government.
can be guaranteed under the The maximum of €150m applies to all
regular GO facility and GO-C The following sectors have their own EZK subsidies, including the GO-C
supportive measures and so are not How is it accessed? facility, the GO-ETFF and the Growth
facility combined, from €50m to eligible: facility and applies to the company group
€150m, in response of the Companies can apply for this through
as a whole.
Coronavirus outbreak. ► Agriculture, fishery one of the banks who will apply at the
government. Currently, those banks are
► Public healthcare ABN AMRO, Bank of Tokyo-Mitsubishi
The total available pool from ► Financial services UFJ, BNP Paribas, Deutsche Bank, ING,
which guarantees will be NIBC, Rabobank, Riverbank, Royal Bank
► Real estate of Scotland, Société Générale and
granted has increased from
€200m to €10b as of 8 April ► Individuals Triodos Bank.
2020. This pool is used for Potentially other European banks can
apply this scheme if approved by the
regular GO financing as well as
Ministry of EZK .
GO-C financing.
The existing GO Facility runs until 31st of
May 2020.
For more information
Ludovic Beukers
ludovic.beukers@nl.ey.com
+31 (0)621252378
14 July 2020 COVID-19: EMEIA EY Government Support Package6 Financing: GO-C: Guarantee Enterprise Financing /
GO-C: Garantie Ondernemingsfinanciering Corona
Last update: 26 May 2020
Following the COVID-19 Who is eligible? What does it cover? Practicalities
outbreak, the EZK has Companies that meet the following Loans (and potentially also RCF) with a The extension of an existing GO facility
announced to extend the conditions: term of up to 6 years. into a GO-C facility will be approved by
existing GO facility with the the government within 1 week after
► Substantial activity in the Netherlands 80% state guarantee for large
application by the financier.
GO-C facility. companies (>€50m revenue, >250 FTE
► No outstanding breach of covenants
or a balance sheet total of over €43m). Purpose of the loan should be working
(before 1 March 2020)
The GO-C provides additional capital, maintenance capex and/or a
90% state guarantee for SMEs (7 Financing: KKC: Small Credit Corona /
KKC: Klein Krediet Corona
Last update: 26 May 2020
On 8 May 2020, EZK has Who is eligible? What does it cover? Practicalities
announced a new support The KKC is intended to facilitate KKC provides 95% state guarantee on Entrepreneurs making use of the KKC
measure called Klein Krediet ‘fundamentally healthy’ companies with loans with a: have to pay the government a one-off
Corona (KKC; Small Credit sufficient ability to repay the loan. commission of 2%.
► Value between €10k and €50k
Corona) aimed at micro-, small- ► Maturity of max. 5 years
Rabobank, ABN AMRO, ING, de
and medium-sized companies/ Volksbank en Triodos have indicated to
To be eligible for the KKC, entrepreneurs
entrepreneurs. ► Interest of max. 4% provide loans under the KKC. Other
must meet the following criteria:
financiers accredited for the BKMB-C are
► Minimum revenue of €50k also eligible to provide loans under the
€750m in bridge loan How is it accessed? KKC.
► Profitable business prior to the
guarantees will be made COVID-19 outbreak
Companies can apply for the KKC
The KKC is still pending for approval by
available for companies with a through Rabobank, ABN AMRO, ING, de
the European Commission; the Dutch
small financing need (€10k up ► Registered with Chamber of Volksbank and Triodos, as well as other
government is aiming to make the KKC
Commerce (KvK) since 1 January financiers accredited for the BKMB-C.
to €50k). 2019
available as per mid-May.
The Dutch government
provides guarantees of 95%
(€713m) on loans with a
maximum interest of 4%
provided by banks and other
accredited financiers.
The KKC is still pending for
approval by the European
Commission.
For more information
Ludovic Beukers
ludovic.beukers@nl.ey.com
+31 (0)621252378
14 July 2020 COVID-19: EMEIA EY Government Support Package8 Financing: TVL: Compensation Fixed Costs SMEs/
TVL: Tegemoetkoming Vaste Lasten MKB
Last update: 28 May 2020
On 20 May 2020, EZK has Who is eligible? What does it cover? Practicalities
announced a new support TVL is intended to facilitate Dutch SMEs TVL provides a total one-off Similar to the TOGS, the TVL will be
measure called in sectors that experience the most compensation for fixed costs of max. exempted from tax.
Tegemoetkoming Vaste Lasten significant COVID-19 impact and of €50k (net) for the period 1 June until 1
which most will remain closed during the October 2020 (four months).
MKB (TVL; Compensation summer. The government will explore possibilities
Fixed Costs SMEs). It is aimed to make business more profitable for
at supporting Dutch SMEs in The value of the TVL is determined on a sectors that are reopening (e.g.
sectors that experience the To be eligible for TVL, companies must by company basis, depending on the extending seasons and opening hours).
most significant COVID-19 meet the following criteria: loss of revenue as a result of COVID-19
and the share of the fixed costs that the
impact and of which most will ► >30% loss of revenue as a result of
company would have been able to cover
remain closed during the COVID-19
with the lost revenue. The share of fixed
summer. ►9 Financing: Guarantee scheme agricultural loans /
BL: Borgstellingskrediet Landbouw and Qredits
Last update: 26 May 2020
The Ministry of Agriculture, Who is eligible? What does it cover? Practical considerations
Nature and Food Quality (LNV) BL-C is currently available for Dutch, The BL facility supports healthy Applications are now open (including
has expanded the guarantee going concern, agricultural businesses businesses to secure additional working bridge loan) until 31 March 2021.
scheme for working capital (‘land en tuinbouw’) that are affected by capital by providing guarantees to banks.
Companies can apply for this through
COVID-19.
under the Guarantee scheme one of the banks who will apply at the
As per an announcement on 14 April, the % guar- government. Currently, those banks are
for agricultural loans (BL, BL- Max. loan
antee
Commission
Plus and VVK), BL-C scheme is also available for fishing ABN AMRO, Deutsche Bank, ING, NIBC,
and aquaculture (production and BL-C €1.5m 70% 0.5-1.5% Rabobank and Triodos Bank.
to include a bridge loan processing) businesses, retrospectively BL €1.2m 70% 3.0% Potentially other European banks can
guarantee, the BL-C, for from 18 March 2020. BL Plus €2.5m 70% 3.0% apply this scheme if approved by the
agricultural, fishing and BL-Plus is an additional facility for VVK €2.5m 90% 1.0% Ministry of LNV.
aquaculture businesses. companies focusing on durability or Max. term of 2 years for the temporary
innovation and VVK is for asset BL-C, 6 years for BL and 12 years for
enhancing credits, i.e. shortly after a VVK/BL-Plus. Either a linear or bullet
takeover or the start of a business. repayment schedule.
The EZK introduced additional Who is eligible? What does it cover? Practical considerations
support in the form of loan
repayment deferral and a 6,000 entrepreneurs who are clients and Qredits provides liquidity support in the Companies will need to review how to
already have credit. short-term for small businesses and demonstrate their credit strength.
significant interest discount for freelancers in need of capital. Interest margin depends on the size of
current borrowers of Qredits, a In addition, Qredits hopes to provide
the loan and ranges from 7.75%-8.75%.
bridging loans to 2,000 SME and For new SME businesses: Standard
provider of microcredits to
freelancers in the short term. This may application procedure, i.e. assessment of Accessed by contacting Qredits’
start-ups and small be partly existing Qredits entrepreneurs business plan, prior year financials and emergency line directly.
businesses. and partly new Qredits clients for bridging forecast.
On 8 April additional budget for Qredits
credit, who already have a (bank) loan
► or existing clients: Postponement of was announced to provide new loan
elsewhere.
repayment for 6 months and interest facilities against lower interest. Details
rate reduced to 2% during this period. t.b.c.
For more information
Ludovic Beukers
ludovic.beukers@nl.ey.com
14 July 2020 COVID-19: EMEIA EY Government Support Package +31 (0)62125237810 Financing: Additional support measures announced –
details to be confirmed
Last update: 28 May 2020
The EZK has announced a What does it cover? Who is eligible? Practicalities
number of additional Several additional support measures The measures are mainly aimed at Practical considerations are still
measures on 7 April 2020, have been announced, including: mid-sized and large enterprises, and limited and will follow when detailed
mainly aimed at supporting companies financed with (external) plans are announced.
equity who are unable to receive bank
companies for which earlier financing (incl. startups and scale-
measures did not provide an ups). Conditions are to be
adequate solution, such as announced.
mid-sized and large ► Bridge loan for non-bank financed ► Financing will be provided through
enterprises, and companies companies (COL) ► Non-bank financed companies who regional development agencies
financed with (external) are impacted by COVID-19 and who (‘ROMs’)
► Government budget €100m
equity who are unable to are financed with (external) equity or
initially, extended with €200m on ► For loans < €50.000 businesses can
venture capital (incl. startups and
receive bank financing (incl. 28 May 2020 apply at Qredits
scale-ups), and SMEs financed with
startups and scale-ups) ► Loans from €50.000 to €2m retained earnings ► On 28 May 2020, EZK announced
► Margin: 3% that the additional tranche will be
► The following are excluded: Retail,
► Maturity: 3 years €200m, to be made available for the
Catering industry, Small business
following 4 months
► Early pre-payment possible services and Freelancers
without penalties
► Postponed phasing out of the Growth
Facility (Groei Faciliteit, GF), a facility ► Current users of the Growth Facility
that provides financiers a 50% (GF)
guarantee on subordinated loans and
shares of investment firms, by 1 year
to 1 July 2021
► Deferred payment of interest and debt
redemption on Early Phase Financing ► Current users of the VFF and IK For more information
(Vroegefasefinanciering, VFF) and (innovative and early-stage Ludovic Beukers
Innovation Credit (Innovatiekrediet, entrepreneurs) that are affected by ludovic.beukers@nl.ey.com
IK) by 6 months (1 April until 1 COVID-19 +31 (0)621252378
October 2021)
14 July 2020 COVID-19: EMEIA EY Government Support Package11 Cash flow measures: Deferral of tax payments
Last update: 30 June 2020 Practicalities
Who is eligible? What does it cover?
All companies that that have or are For CIT, PIT, Health Insurance Act, VAT, We strongly recommend engaging with the
The COVID-19 extension of tax wage tax, gambling tax, insurance tax, authorities before a payment becomes late
expected to have payment problems
payments is a tax measure that caused by COVID-19 and request is landlord tax, environmental taxes and wherever possible.
allows companies that have or filed before October 1st, 2020. excise duties: The Decree indicates that a request for
are expected to have payment ► The Dutch tax authorities will payment extension for tax periods ending
problems caused by COVID- automatically grant a payment after February 1st, 2020 will in principle also
19 to defer tax payments extension for 3 months to cover any be considered as a timely filed notice
How is it accessed? ‘unable to pay’. The notice ‘unable to pay’
regarding CIT, PIT, Health outstanding or future tax
CIT, PIT, Health Insurance Act, VAT, assessments within this period. will be considered valid, unless with
Insurance Act, VAT, wage tax: after receiving a tax hindsight the inability to pay was not mainly
wage tax, gambling tax, assessment (of either one of the ► Collection interest of 0.01% will be caused by the impact of the Covid-19 virus.
insurance tax, landlord mentioned taxes), the request can be filed charged until October 1st, 2020.
Companies will need to consider whether an
tax, environmental taxes with the Dutch tax authorities using a ► For self-assessed taxes penalties for extension of more than 3 months is needed.
(a.o. energy tax, coal tax, central P.O. box or digital form. The non/late payment will be waived when
request applies automatically. One the extension is requested. • In all cases, no dividends and bonusses
waste tax) and excise duty request is sufficient to request deferral of may be paid out to the Board of Directors
(including those on non- payment. For customs duty and other import or managing board of a company and no
alcoholic beverages). taxes: shares may be repurchased until the date
Gambling tax, insurance tax, landlord tax,
environmental taxes and excise ► The Dutch customs authorities may of the meeting in 2021 during which the
For BPM this is applicable as of grant an extension of payment 2020 annual accounts are adopted.
duties (coal tax and excise duty only
deadlines up to the 15th day of the These restrictions may also be applicable
tax period May 2020. domestic transactions): receiving a tax
for a foreign parent company.
assessment, the request for that month following the month in which
concerning tax assessment can be filed these measures end. • When the total outstanding amount of
For customs duty and other
with the Dutch tax authorities using a ► Payment extension should however taxes due is lower than EUR 20,000,
import taxes (VAT, excise duty central P.O. box or digital form. The be accompanied by setting a information needs to be provided from
and coal tax), no request applies automatically. corresponding bank guarantee which it is clear that the revenues
special payment extension decreased significantly compared with
BPM (tax on passenger cars and ► The bank guarantee requirement may previous months.
program is available; the motorcycles: only be waived in case of severe
regular facility applies. economic or social distress and will • When the total amount of taxes due is
applicable as of the tax period May 2020
be reviewed on an individual basis EUR 20,000 or more, a declaration from
after receiving a tax assessment.
For more information a third-party expert is needed in which is
Customs duty and other import taxes: no stated that the financial problems are
Roxana Bos Schepers special payment extension mainly caused by COVID-19.
roxana.bos@nl.ey.com program available, but the regular
Tel: +31 (0) 6 2908 3317 payment extension program may be
applied for.
14 July 2020 COVID-19: EMEIA EY Government Support Package12 Cash flow measures: Other cash tax management (I)
Last update: 26 May 2020
The Government has Tax and collection Practical considerations In case the amount of the discount
is set at close to nil due to the
announced a reduction of interest From 23 March 2020 until October lowered rate to 0.01%, taxpayers
tax and collection interest to The reduction of tax and 1, 2020 collection interest is can file an objection. The discount
0.01% until October 1, collection interest is introduced reduced from 4% to 0.01%. will then be determined based on
2020 to provide financial as a tax measure to Tax interest will be reduced from the collection interest rate of at
support. provide financial support 4%/8% to 0.01% for all taxes until least 4%. This is applicable as of
to companies that have or are October 1, 2020. This has effect March 23, 2020
expected to have payment from 1 July 2020 for PIT and 1
problems. June 2020 for all other taxes.
However, since this reduction These reductions will be applied
applies to all taxes, we expect automatically.
that all taxpayers who are liable
to Dutch taxes are eligible According to the decree this will
to these reduced interest rates. not apply to collection interest in
case of a refund of collection
interest by the Dutch tax
authorities to the taxpayer. In case
of a refund of collection interest,
the regular rate applies which
amounts to at least 4%.
The collection interest rate is also
relevant to determine the discount
in case certain tax payments are
made at once (in Dutch
‘betalingskorting’).
For more information
Roxana Bos Schepers
roxana.bos@nl.ey.com
Tel: +31 (0) 6 2908 3317
14 July 2020 COVID-19: EMEIA EY Government Support Package13 Cash flow measures: Other cash tax management (II)
Last update: 1 July 2020
The Government allows Deferral of settlement energy tax and Practical considerations For more information
energy suppliers and taxable SDE Please note that when a taxable Bastiaan Kats
users to settle the energy After consultation with the energy suppliers, the person does not meet the conditions
bastiaan.kats@nl.ey.com
tax and surcharge durable Government approved that the energy suppliers for this arrangement, he can still
energy and climate transition are allowed to settle the energy tax and the SDE, request for deferral of payment of Tel: +31 (0) 6 2908 3773
inclusive of VAT, for the supply of natural gas and energy tax and SDE as described in
(SDE), inclusive of VAT, with slide 11.
electricity in the months of April, May, June, July,
respect to the supply August and September 2020, at a later time than
respectively usage of natural usual but no later than January 1st 2021. In connection with the foregoing, for
gas and electricity for the some specifically mentioned energy
months April, May, June, This approval applies in four situations. tax and SDE refund schemes, the
government has, under conditions,
July, August and September extended the period within which the
The first two situations basically
2020 at a later time than concerns supplies for which the energy supplier refund for the period April up to and
usual but no later than does not invoice advance payments or, if including September 2020 must be
January 1st 2021 under nevertheless invoices for advance payments, the requested until 13 weeks after
certain conditions. reconciling invoice relates to a calendar month. December 31st 2020.
The basic principle here is that the energy
supplier does not charge energy tax and SDE,
inclusive of VAT, to the concerning customers on
invoices and in payments for supplies in April,
May, June, July, August and September 2020.
The third situation concerns – in short – supplies
for which the energy supplier does not invoice.
Finally, the fourth situation concerns – in short –
situations in which the usage of electricity and/or
natural gas is taxed instead of the supply, for
example the use of self-generated electricity.
However, in this fourth situation the energy tax
and SDE become due on December 31st
2020.However, in this fourth situation the energy
tax and SDE become due on 31 December
2020However, in this fourth situation the energy
tax and SDE become due on 31 December 2020
14 July 2020 COVID-19: EMEIA EY Government Support Package14 Cash flow measures: Other cash tax management (III)
Last update: 26 May 2020
The government Corona-reserve Practical considerations For more information
introduced a measure in In determining the taxable profit for We do note that the loss expecting to Roxana Bos Schepers
order to effectively 2019, companies will be able to take a loss into incur in 2020 needs to be determined
carefully. If the amount of the expected roxana.bos@nl.ey.com
carry-back expected account they expect to incur in fiscal year 2020.
losses in 2020 to 2019. loss is larger than the amount of Tel: +31 (0) 6 2908 3317
This loss compensation can normally only take
the final loss determined in the tax
place upon filing the 2020 Dutch corporate income
return of 2020, the 'corona-
tax return, which will be no earlier than early 2021.
reserve' taken into account in the 2019
The Dutch Government will make it possible for corporate income taxation will be
companies to deduct the expected loss due to the amended. This will result in corporate
COVID-19 crisis for the year 2020 from the taxable income tax 2019 due with possible
profit of 2019 as a ‘corona-reserve’. When calculation of tax interest.
you already paid a preliminary corporate income
It is important to note that by forming the
tax assessment 2019, this measurement results in
'corona-reserve' the taxable profit of
a direct tax refund.
2019 will be lowered. This lowering of
The corona-reserve may not exceed the 2019 the profit will result in a lower EBITDA
profit before considering the reserve. In addition, and will therefore have other tax
the corona-reserve may not exceed the expected consequences. For example, the
loss as a result of the COVID-19 crisis in 2020. deductible interest under the
Other than the earningstripping (ATAD 1) and the
government measures, incentive of the innovation box may be
lower.
it may also be possible
to reduce a preliminary
tax assessment in order Preliminary tax assessment Practical considerations
to improve liquidity. If companies which have received and paid a Penalties can be imposed for deliberately
preliminary tax assessment for 2020 (CIT/PIT) now providing incorrect or incomplete
expect lower profits in 2020 as a result of COVID- information when requesting a preliminary
19, it may be possible to amend the preliminary tax tax assessment or a revision of a
assessment and get a refund of tax already paid. preliminary tax assessment.
14 July 2020 COVID-19: EMEIA EY Government Support Package15 Personal income tax measures
Last update: 26 May 2020
The government Relaxation hours criterion Postponement proposal For more information
introduced three Entrepreneurs who are liable to income tax can, under certain excessive borrowing from Roxana Bos Schepers
personal income tax conditions, claim various entrepreneurial facilities. Some of these own company roxana.bos@nl.ey.com
measures to mitigate entrepreneurial facilities, such as the self-employed tax deduction
The legislative proposal excessive
(‘’zelfstandigenaftrek’’), can only be claimed if the ‘hours criterion’ Tel: +31 (0) 6 2908 3317
unwanted borrowing from an own company
is met. This hours criterion is in principle met when the
consequences due to (‘’Wet excessief lenen bij eigen
entrepreneur spends at least 1225 hours (for start-ups 800 hours)
the corona-crisis. vennootschap’’) will be postponed
per calendar year on activities for his business. To prevent
for one year until 1 January 2023.
entrepreneurs from losing the right to claim these facilities, the
The proposal regards the taxation
Dutch Tax Authorities will assume that these entrepreneurs have
of the debts of an individual
spent at least 24 hours (for start-ups 16 hours) a week on their
business owner owed to the own
business during the period 1 March 2020 to 1 September 2020,
company that are higher than
even if they did not actually spent those hours.
€500,000 (excluding qualifying
For entrepreneurs who have seasonal work, such as festival owner-occupied home debt). By
industry, the Dutch Tax Authorities will assume during the period postponing the entry into force by
1 March 2020 to 1 September 2020 that these entrepreneurs have one year until 1 January 2023,
spent the same number of hours as the normally do in other years individual business owners have
in the same period. until 31 December 2023 (first
reference date) to anticipate the
legislative proposal.
Payment deferral for mortgage obligations
Lenders such as banks are offering customers that are temporarily unable to meet their payment obligations the option of deferring the
payment of interest and repayment of the principal amount for up to six months. Under current legislation, mortgages that are subject
to a tax repayment obligation must be repaid by 2021 at the latest if a deferral of payment was provided in 2020. The government
introduced a measure to retain the right to deduct interest of the mortgage by two means:
1. The repayment arrears can be (directly) spread over the remaining term of the mortgage (of maximum 360 months).
2. Alternatively, a customer can choose to split his remaining loan. This means that the maximum of six months in repayment arrears
does not necessarily have to be spread over the full remaining term. Instead, the repayment can be made within, for example, five
years.
The government is examining how and under what conditions the measure may also apply to loans for which the tax repayment
obligation does not apply and for loans that have been provided by a person other than a creditor with a documentation obligation,
such as a loan from an own BV or a family member.
14 July 2020 COVID-19: EMEIA EY Government Support Package16 Administration: Indirect Tax – Global Trade / Customs
Last update: 26 May 2020
The Dutch Customs Who is eligible? What does it cover? For traders in personal protective gear:
Authorities have announced ► All companies involved in excise and For all companies: ► A customs duty exemption (0%) for
a number of administrative customs duty payments and licenses the import of personal protective gear
► Late compliance may be excusable, is conditionally available.
measures to provide relief for the general measures
decided on a case by case basis
from strict customs related ► Companies holding a preferred trader ► A license for the export of personal
► Flexible approach to penalties for late protective gear is required to be
compliance. license, i.e. an Authorized Economic
payments or late compliance
Operator (AEO) license for AEO obtained prior to export.
The Dutch Customs specific measures ► Pro-forma objections (i.e. without
Practical considerations
details on why the request is made)
Authorities have ► Companies, health providers or
and refund requests allowed; may be Companies will first need to consider if
also installed both a governmental institutions providing for
possible to file late they are in need of one or more of the
personal protective gear for the import
customs duty exemption for duty exemption and export license For license holders:
reliefs and the timing/procedure to apply.
imports, and a mandatory measures The customs duty exemption for the
export license for exports, ► Individual exceptions for companies
import of personal protective gear is
not meeting the standard
for companies providing for requirements for denatured alcohol if
accessed via the regular customs
personal protective gear declaration procedure.
used for medical disinfectant gels
(non-commercial only). ► Reduction or full exemption of bank
The export license for export of personal
protective gear can be requested through
guarantees
a standard form available on the DCA
► Extension of current license website and must be obtained prior to
applications that cannot be completed the export.
► Tailored treatment of urgent requests All other measures are based on
for licenses (based on individual individual circumstances and should be
circumstances) accessed/discussed by contacting the
relevant DCA officers.
► Leniency towards companies that
cannot comply with the financial
solvency requirements in relation to
AEO licenses For more information
Ilona van den Eijnde
ilona.van.den.eijnde@nl.ey.com
Tel: +31 (0) 6 2125 1475
14 July 2020 COVID-19: EMEIA EY Government Support Package17 Indirect Tax – VAT
Last update: 26 May 2020
The Dutch Ministry of 1. No VAT on the supply of medical 2. No VAT on the free supply of medical 4. Lower VAT rate for online
Finance have issued a staff equipment/goods sports classes by fitness centers
Decree that provides for tax Who is eligible? Who is eligible? Who is eligible?
concessions to alleviate the ► All companies involved in the supply of ► All companies involved in the free supply of ► All fitness centers/gyms and
effects of battling the medical staff to hospitals and other Covid-19 medical supplies. similar businesses
COVID-19 virus. designated (medical) facilities. What does it cover?
What does it cover?
What does it cover? The measure applies to all fitness
Under this Decree, the For all companies:
The measure applies to all business centers and similar businesses that
measures regarding the • No VAT is due on the free supply of Covid-19 offer paid on-line classes. Even though
supplying staff to the designated facilities,
supply of staff and Covid-19 as long as the following requirements are
medical supplies as included in an technically the lower VAT rate only
medical supplies are addendum to the Decree. The addendum is applies to granting admission to these
met:
based on the 'HS classification reference for classes, the Decree allows
applicable/in force from 16
1. The medical staff is supplied to Covid-19 medical supplies' as published by the application of the lower VAT rate
March 2020 up to and certain well-defined organizations the World Customs Organization and as (currently 9%) to on-line sports lessons
including 30 September and institutions; valid on the date of publication of the Decree. as well.
2020. The measure 2. The supplier must include the use of Practical considerations 5. Lower VAT rate for the supply
regarding the application of this special measure on his invoices
A condition for applying this measure is that the
of cotton swabs
the lower VAT rate is and ensure that it is included in his
records; and costs of the Covid-19 medical supplies are The Ministry of Finance published a
applicable from 16 March
treated as 'general costs' for VAT deduction. clarification about the application of the
2020 until the obligatory 3. The consideration for the supply Invoices for the free supplies have to mention lower rate to the supply of cotton swabs
closure ends. Another cannot exceed the gross labour costs the application of this special scheme and it has used for COVID-19-testing. This is not
Decree allows businesses to plus a maximum of 5% for admin. to also be clear from the records. a new rule but, as said, a clarification of
apply a VAT exemption with Practical considerations the term 'medical equipment'.
3. Supply of (medical and non-medical)
credit (zero rate) to supplies The exempt turnover generated by the surgical masks VAT exempt with credit
of (medical and non- supply of staff under this approval does
not affect the VAT deduction position of Who is eligible?
medical) surgical masks
the supplier. ► All businesses selling such masks
from 25 May 2020 until (at
least) September 2020. What does it cover? For more information
The measure applies to all supplies of medical Jeroen Bijl
and non-medical surgical masks. The VAT Jeroen.bijl@nl.ey.com
exemption with credit is applicable to supplies Tel: +31 (0) 6 2125 1839
from 25 May 2020 until (at least) September
2020.
14 July 2020 COVID-19: EMEIA EY Government Support Package18 Employment support – labor law
Last update: 29 June 2020
In March 2020, the Dutch Who is eligible? What does it cover? How is it accessed?
government announced a Companies who suffer or expect to The amount of subsidy is based on the Companies eligible for the subsidy can
new temporary measure to suffer a minimum of 20% loss of wage costs for March 2020, and depends request the subsidy at the Public
help mitigate the financial turnover in a four-month period, on the loss of turnover and can be up to Employment Services (in Dutch:
starting on 1 June, 1 July or 1 August 90% of employee wages, i.e. with a loss ‘UWV’).
consequences of Covid-19
2020. The loss in turnover is of turnover of 50%, the allowance is 45% Application for the NOW 2.0 can be
for employers and stimulate of the wage costs, etc. submitted from 6 July 2020 until 31
measured by comparing the turnover
keeping employees over these months with a third of the The NOW does not affect the accrued August 2020. The first payments of the
employed during this time: turnover in the calendar year 2019. unemployment benefit rights of advance should then be made within 2
the Temporary Emergency If a company is part of a "group", the employees. to 4 weeks following the date of
(loss of) turnover of the entire group After the initial assessment of the application.
Bridging Measure for
is the basis for the NOW application. application, the employer will receive a
Sustained Employment (in payment in advance of at least 80% of Practicalities
Above a certain subsidy limit,
Dutch: “Tijdelijke restrictions apply to the payment of the expected total subsidy, paid in
Employers will need to inform the
Noodmaatregel dividends to shareholders, the multiple instalments. The actual amount
works council, staff representation or
Overbrugging voor payment of bonuses to executives of of subsidy the employer is eligible for is
employees about the NOW
Werkgelegenheid”), also the employer and the group, and the determined afterwards, based on the final
application.
(re)purchasing of own shares. (turnover) figures and compliance with
referred to as the ‘NOW 1.0’. the obligations. Consequently, employers
Employers will need to substantiate
If a group has incurred a loss of the loss of turnover.
The NOW 1.0 initially turnover of less than 20%, an may receive additional payments or have
Companies with "larger" applications
applied for a period of three operating company with a loss of to repay (part of) the advance.
(i.e., if the advance payment is EUR
months (application between turnover of at least 20% may also If the company decides to dismiss
100.000 or more, or if the final subsidy
1 March 2020 and 31 May apply for NOW 2.0. employees for economic reasons,
is EUR 125.000 or more), will have to
Companies must in principle continue additional conditions apply to remain
2020). eligible for the NOW 2.0 subsidy. If these
submit an audit report with the
to pay 100% of salaries, and have the application for the final determination
After an initial period of three obligation to encourage and enable conditions are not observed, a
of the subsidy. If no audit report is
months, the NOW has been their employees to receive further penalty/correction of 5% of the subsidy is
required, a form containing an expert
extended by four months. education. applied.
third party's report on the turnover
The extended NOW is decrease must be submitted.
referred to as the ‘NOW
2.0’.
For more information
Joost van Ladesteijn
joost.van.ladesteijn@hvglaw.nl
Tel: +31 (0) 6 2908 4528
14 July 2020 COVID-19: EMEIA EY Government Support Package19 Employment support: Self-employed workers
Last update: 28 April 2020
The Compensation self- Who is eligible? What does it cover? Practicalities
employed persons* Self-employed workers whose Self-employed workers can obtain a The additional compensation does not
(Tijdelijke businesses are affected due to COVID- welfare benefit for a 3-month period have to be reimbursed.
overbruggingsregeling 19 and who do not earn the social payable on a monthly basis;
The regulation has a retroactive effect
zelfstandige ondernemers) minimum income anymore.
The benefit is capped at the social if applied for in the period March 2020
concerns temporary support Eligible for the compensation are the self- minimum income of €1,500 net (married) – May 2020.
for self-employed workers so employed workers who: and €1,050 net (individuals).
Support is also possible via a working
they can continue their ► Are over 18 years; An advance payment is possible. capital loan, of up to €10,517 with 2%
business. ► Are Dutch residents with a Dutch
interest. Maximum duration of the loan
is three years. Repayment is only
resident company;
required as from 1 January 2021.
The new regulation applies ► Are registered at the Chamber of
as of 1 March 2020, for a How is it accessed?
Commerce;
The scheme will be executed by local
period of 3 months. Cross border
► Started their business prior to 17 municipality (an application form will be
March 2020 at 18.45pm; made available shortly) Self employed workers who reside
*also available for other in the Netherlands and operate
► Work at least 1,225 hours per annum The total compensation depends on the
entrepreneurs / DGA’s for their business/profession; personal position (e.g. household
their business in another EU
under certain conditions member state are also eligible for
composition) and applicants may be
► Reside in the municipality where they the welfare benefit.
requested to provide further insights on
apply for the additional support.
family composition; Self employed workers residing in
The regulation also applies for other another EU member state and
Additional information on the company
entrepreneurs who meet the following operating their business in the
may be requested.
requirements: Netherlands could be eligible for
Applicants should declare that their the working capital loan.
Working at least 1125 hours per annum
income for the application period, does
for their business; It will be confirmed how the non
not meet the social minimum due to
Dutch resident self employed
► Have full control/ownership of the COVID-19 and/or the company is facing
worker needs to apply.
company and be liable for the liquidity issues due to COVID-19.
companies’ financial risks;
For more information
► Are unable to pay wages.
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
14 July 2020 COVID-19: EMEIA EY Government Support Package20 Employment support: gebruikelijk loon (‘customary
wage’)
Last update: 28 April 2020
The cutomary wage Who is eligible? What does it cover? How is it accessed?
(gebruikelijk loon) which a A Director/substantial shareholder needs ► The customary wage (gebruikelijk Further details are expected to be
Director/substantial to derive a minimum employment income loon) will temporarily (2020) be announced shortly.
from his company for payroll tax lowered for companies impacted by
shareholder needs to
purposes. Payroll tax needs to be COVID-19.
receive from the company withheld on this customary wage or
can be lowered ► The customary wage will be lowered
‘gebruikelijk loon’
in accordance with the decrease in
turnover, for which a comparison is
made between the relevant period
2020 against the same period 2019.
For more information
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
14 July 2020 COVID-19: EMEIA EY Government Support Package21 Employment support: social security (WAB)
Last update: 2 April 2020
The Dutch tax authorities will Who is eligible? What does it cover? How is it accessed?
be more accommodating Under the WAB Unemployment ► This premium will be adjusted so that It has not been confirmed which sectors
towards employers Insurance (WW) employers pay a low the high contribution does not apply to this applies to yet. Companies will need
contribution (2.94%) for employees on sectors with overtime due to COVID- to verify first whether their sector is
regarding the new Balanced
indefinite employment contracts and a 19, such as in the healthcare sector covered under the overtime exemption.
Labour Market Act (WAB). high contribution (7.94%) for employees
► The low contribution only applies
on flexible contracts, including indefinite
when employment agreements are in
part-time contracts (22 Employment support: onboarding requirement
Last update: 15 April 2020
The Dutch tax authorities will Who is eligible? What does it cover? How is it accessed?
be more accommodating Employers hiring and onboarding new ► The Dutch tax authorities indicated Measures can be applied by employers.
towards employees need to fulfill administrative that they will be more accommodating
requirements for payroll taxes that due to towards employers that cannot meet
employers' administrative
COVID-19 measures sometimes cannot their administrative payroll taxes
payroll taxes requirements be met. requirements for onboarding new
for onboarding employees. employees due to COVID-19
measures.
► This applies for example where
employers cannot identify a new
employee in person. Sanctions (of the
anonymous tax rate being applicable)
will not apply as long as the employer
takes care of proper identification
once possible again.
For more information
Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
14 July 2020 COVID-19: EMEIA EY Government Support Package23 Employment support: cross border employment
Last update: 15 April 2020
The Dutch social security Who is eligible? What does it cover? How is it accessed?
authorities (Sociale This concerns multiple state workers (or ► The Dutch social security authorities There is no need to make arrangements
Verzekeringsbank) have cross border commuters) living or confirmed working from home due to for these cross border employees. The
decided that working from working within the European Union, the COVID-19 will not be taken into regular rules otherwise apply.
home due to COVID-19 will European Economic Area or Switzerland. account for determining the multiple
state workers’ social security position.
not be taken into account for In accordance with the EU directive on
determining the 25% social security these multiple state ► Rules will be applied as if working
condition for social security workers are required to pay social from home due to COVID-19 has not
security in their home country when occurred.
purposes. working there at least 25% of their time
Due to COVID-19 the social security
position of multiple state workers What does it cover? How is it accessed?
therefore may change due to working
from home. ► The Netherlands and Germany Dutch resident employees that work in
agreed that a change in Germany may receive a net German
The Dutch tax authorities employment pattern due to COVID-19 state benefit. The Netherlands
clarified tax positions for COVID-19 does not impact and Germany agreed that the
cross border commuters Who is eligible? taxation on the employee's Netherlands will exempt this benefit from
employment income. Taxation will taxation.
Dutch resident employees working in be levied in accordance with the
Belgium or Germany could be confronted 'regular' working
with Dutch taxation on their employment pattern. Employees, however,
income whilst working from home (or the may choose to apply the tax treaty
other way around for Belgium or German rules and possibly have their
residents working in the Netherlands). employment income taxed in the
Authorities have taken measures to resident state whilst working from
mitigate the COVID-19 'working from home.
home' impact on taxation on employment
income. ► The Netherlands and Belgium
have agreed that being at home How is it accessed?
For more information (not able to work) due to COVID- Measures can be applied in line with
19 will not impact taxation on regular rules on (wage) tax filings.
Marcel Teeuwen
employment income. An
marcel.teeuwen@nl.ey.com
agreement on the position for
Tel: +31 (0) 6 2908 3470
COVID-19: EMEIA EY Government Support Package employees working from home is
still expected.
14 July 202024 Employment support : Reimbursement of costs and
allowances
Last update: 28 April 2020
This sheet provides for an Who is eligible? How is it accessed? Practicalities
overview of employment The Work Related Cost Scheme (WRCS) Employers should designate the ICT- ► Employers should conclude an
support while employees allows certain IT related equipment to be equipment and the health and safety agreement with their employees when
are working from home. This provided to employees tax free (including facilities as work-related costs (under they provide the employees with for
concerns existing legislation an allowance for internet costs) as long specific exemption) in their WRCS example a laptop. The agreement
as the equipment is required to perform administration. should include that the employee will
that may be relevant now the job, i.e. the ‘necessity criterion’ return the provided equipment or pay
due to working from home Both employee and employer therefore
the residual value, if the equipment no
because of COVID-19. There is also a specific exemption for the benefit from the tax free facility.
longer meets the legal conditions.
provision of equipment for health and
The claim should be made at the moment This should be assessed for example
safety purposes (arbovoorzieningen) per
The tax free budget for the when the equipment is provided to the when the COVID-19 crisis is over and
the Working Conditions Policy
employee. employees return to their usual
Work Related Costs scheme (Arboplan), e.g. a desk and an office
workplace at the office.
has been increased from chair can be provided to ensure an
1,7% to 3% over the first ergonomic workplace at home. ► If an employer asks for an allowance
when providing the laptop, the
400,000 Eur of taxable The tax free budget over the first 400,000
‘necessity criterion’ is not met and the
wages. Eur of taxable wages has been increased
specific exemption cannot be applied.
from 1,7% to 3%.
Taxation on home-work
travel allowances not Who is eligible? What does it cover? How is it accessed?
impacted by COVID-19
Whilst working from (or staying at) home ► Tax authorities approved that COVID- Employers should apply the regular rules
employees do no longer make travel 19 changes in travel patterns will not for tax free payout of home – work travel
expenses and employees could be impact taxation on travel allowances allowances and regard the COVID-19
confronted with taxation on the for home – work. Travel expenses can 'home' days under the regular travel
travel allowance that they receive for be reimbursed in accordance with the pattern.
home – work travel expenses (where regular rules and COVID-19 'home'
employers continue payout). days can be regarded as travel days
in accordance with the regular For more information
working pattern. Marcel Teeuwen
marcel.teeuwen@nl.ey.com
Tel: +31 (0) 6 2908 3470
14 July 2020 COVID-19: EMEIA EY Government Support Package25 Commercial contracts: Legal considerations
Last update: 2 April 2020
As a result of Covid-19 and Force Majeure Unforeseen circumstances Reasonableness & fairness
the governmental measures ► Force majeure is a circumstance ► Upon the request of any party to an ► Under Dutch law, all contractual
introduced, parties may be which makes it impossible for a party agreement; the court may either terms are governed according to
entitled to suspend their to meet its (contractual) obligations. modify the effects of a contract or set standards of reasonableness and
payment obligations and/or it aside in whole or in part, on the fairness. A clause is not enforceable
► By law, force majeure applies where a
basis of unforeseen circumstances to the extent that, in the given
amend their contractual party was not at fault for the failure
which are of such a nature that the circumstances, this is not the case.
obligations by invoking force and where it cannot be held
other party cannot expect, in
majeure, unforeseen accountable on the basis of the law, a ► The extraordinary circumstances due
accordance with generally held
legal act, or common law. to Covid-19 may for certain parties
circumstances or the standards of reasonableness and
result in unreasonable negative
principle of reasonableness ► In the event of force majeure the other fairness, the unaltered contract to
consequences, such that contractual
party cannot claim performance or continue to be valid and enforceable.
and fairness to find some compensation from the defaulting
terms may not be applicable.
relief from their obligations. ► The court may grant such modification
party. ► This may oblige parties to renegotiate
or setting aside a retroactive effect.
their contractual terms. If no
► Contractual terms may extend or limit
This should be determined the scope of force majeure
► On the basis of this legal concept a agreement is reached, a court may
on a case by case party could try to renegotiate and have determine that certain terms no longer
circumstances or the consequences
its lease obligations decreased for the apply.
basis. The general rule of thereof.
period of the Covid-19 measures for
'pacta sunt servanda’ instance.
(agreements are to be kept)
remains the basic principle
and that restrictions to this
principle may only be
applied in exceptional
circumstances.
For more information
Robin de Wit
robin.de.wit@hvglaw.nl
Tel: +31 (0) 6 2125 2626
14 July 2020 COVID-19: EMEIA EY Government Support PackageYou can also read
