Government measures in key jurisdictions 5th edition - Flipbook - Page 143
The Netherlands
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Based on the application, the Dutch Employee Insurance Agency (the UWV) will pay an
advance payment of 80% of the estimated amount of the subsidy based on the average
wage bill of June 2020 and the employers’ actual wage costs in time period 3, 4 or 5. A
final settlement will take place on the basis of the actual turnover which normally
requires an audit opinion. In cases of a composition of legal entities, the decline in
turnover is assessed at group level. This means that if a group as a whole has a decline
in turnover of less than 20%, the individual members of that group are not eligible for a
NOWsubsidy. A maximum of twice the maximum daily wage per month per individual
employee is taken into account as salary.
Compensation for each individual employee’s wage is capped at EUR 9,718 per month. As
of June 2020, a correction to the subsidy will be applied in case of dismissals. However,
the penalty for making employees redundant will no longer apply. Furthermore, the
subsidy may also be used for purposes other than the payment of wage costs. When
using the scheme, companies are prohibited, amongst other things, to make profit
distributions to shareholders, pay bonuses to the board and management, and/or
repurchase their own shares. Furthermore, companies must declare that employees
will be encouraged to retrain. Applications may be submitted via UWV.
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A measure is available for the self-employed registered in the business register before
17 March 2020. The support may take the form of a benefit payment
up to a certain maximum amount (social minimum) and/or a loan for
working capital to solve liquidity problems. No viability test will be applied so that
the requests may be processed quickly, i.e. 4 weeks instead of the regular 13week period. The level of income support depends on income
and the household composition but is a maximum of approx. EUR 1,500
per month (net). This income support does not need to be paid back. The accelerated
procedure also applies to loan applications for working capital up to a maximum of
EUR 10,157. In addition, a lower interest rate than the regular rate will be applied
on the loans.
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On 20 May 2020, the Dutch government announced that it intends to extend the
scheme, which means that entrepreneurs can apply to their municipality until 1
October 2020. The income support under the extended scheme can only be granted
for the period between 1 June 2020 and 1 October 2020. The difference between the
schemes is that the income support under the extended scheme is subject to a partner
income test. If the household income is above the social minimum, entrepreneurs are
not entitled to the income support under the extended scheme. To apply for a loan of
working capital, the applicant must declare that no suspension of payment or
bankruptcy for the applicant, their company or one of their partners (vennoten) has
been applied for or obtained. The amount of working capital granted under the
schemes jointly is capped at EUR 10,157.
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On 28 August 2020, the Dutch government announced that it intends to extend the
scheme, named Tozo 3, until 1 April 2021. As of 1 October 2020, a maximum savings
requirement will be introduced. This entails that entrepreneurs with more than EUR
46,520 in savings will not qualify for Tozo 3. As of 1 January 2021, Tozo has gone into a
new phase, where municipalities support applicants where necessary to prepare for
the reorientation of business operations. As of 1 February 2021 it is possible to apply for
support retroactively for one month prior to the month of application.
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The Dutch government has announced that from 1 April 2021 until 1 July 2021 the
scheme will be extended as Tozo 4. Additional information has not been published yet.
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Entrepreneurs can apply to the municipality until 31 March 2021, for a maximum of
three months in the period between October 2020 and March 2021. Applications can
therefore also be submitted retroactively. You can find the eligibility criteria here.
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