Third set of corona support measures for entrepreneurs

This information is provided by

Netherlands Chamber of Commerce, KVK | Netherlands Enterprise Agency, RVO | Tax and Customs Administration, Belastingdienst

The new, third set of corona support measures for businesses has come into effect on 1 October, and spans a longer period than the previous ones: businesses will be able to claim support to help them cope with the corona crisis until July 2021. New conditions are in place for some schemes. Read what changes per financial measure on this page.

Please note: the information on this page will continue to be updated as details emerge. Last update: TVL extended for Q1 2021.

Temporary additions to the support package

On October 27, the cabinet presented temporary additions to the support package for the 4th quarter. There will be extra money for entrepreneurs who are disproportionately hit by the recent measures. Additions to the support package in brief:
  • The TVL for affected SMEs will be temporarily opened to all sectors. This applies to the 4th quarter of 2020 and 1st quarter of 2021.
  • The TVL subsidy percentage increases with the loss of turnover.
  • Entrepreneurs in the hospitality sector can, in addition to the TVL, receive a one-off subsidy in the 4th quarter to reimburse the costs of stock and adjustments. This amount comes to an average of € 2,500 per entrepreneur.
  • Event organizers receive an additional fee, based on the summer TVL fee. € 11 million has been reserved for this. Companies and suppliers in the event industry can use this support in the last quarter of 2020 and the first quarter of 2021.
  • Read more about the schemes in the 3rd Business Support Package (in Dutch).

NOW 3: wages compensation scheme extended

If you employ staff, and your business loses turnover due to the corona crisis, you will be able to continue to claim compensation for wage costs from the Employee Insurance Agency UWV. New conditions will apply:

  • To apply for the first period of NOW 3, you must have a turnover loss of 20% or more. This percentage will be increased to 30% per 1 April 2021 for the second and third 3-month periods.
  • NOW 3 is divided into three periods: NOW 3.1 compensates wages from October 1, 2020 until January 1, 2021. NOW 3.2 from January 1 until April 1. NOW 3.3 from April 1 until July 1, 2021. You can apply for NOW 3 for the months October, November and December retroactively from 16 November until (and including) 13 December 2020 and again from 15 December 9:00 hours through 27 December 2020. During the first 2 periods (October-December 2020 and January-March 2021) the limit for your turnover loss percentage will remain 20%. From 1 April 2021 this percentage will be increased to 30%.
  • You will need to apply for NOW 3 every 3 months: for the period starting 1 October 2020, 1 January and/or 1 April 2021.
  • In the periods from 1 October to 31 December 2020 and from 1 January to 31 March 2021, the wage bill can fall by 10% without you receiving less allowance.
  • If you dismiss staff due to economic reasons, this will no longer lead to a reduction in the NOW compensation sum you receive. You do have to assist your employees in additional training or training for other employment. If you don't, you risk a fine of 5% of your NOW compensation. You must contact the Employee Insurance Agency UWV to support your employees.
NOW 2 is now closed for applications. NOW 3 is open for applications from 16 November - December 27. Read more about the new NOW scheme.

Tozo 3 and 4: self-employed professionals scheme

The Temporary bridging measure for self-employed professionals, Tozo, has been extended until 1 July 2021: Tozo 3 will run from 1 October through 31 March, and Tozo 4 from 1 April through 30 June. You can apply for income support or a business loan: this remains the same.

The government plans to introduce a means test for self-employed professionals who want to apply for the Tozo scheme, in addition to the partner income test that was introduced for Tozo 2.

You can apply for Tozo 3 in your municipality of residence.

Means test

The means test will apply to Tozo 4, effective 1 April 2021. The test will be set up to ensure self-employed professionals can continue their business. What this means: the amount of money readily available to you, so cash, the balance from bank and savings accounts, shares, options and obligations, will be counted. If you have over €46,520 in these types of funds, you will not be able to apply for Tozo 4. Other assets, such as your private and business premises, protected pension sums, machinery, and supplies that you need to continue to practice your profession and keep your business viable, will not be counted in this means test.

Exploring the labour market

Tozo 3 will allow municipalities to offer self-employed professionals support in finding a new or different occupation. From 1 January 2021, municipalities will assist you in re-schooling and coaching, according to your needs.

Partner income test

For the Tozo 3 income support the partner test is applicable. Your municipality will check your income and your partner’s income. Is your income combined with your partner’s income more than the social minimum in the months you apply for? Then you cannot apply for the Tozo 3.

TVL: Reimbursement Fixed Costs SMEs continued

Are you a self-employed professional or do you run an SME with no more than 250 employees? And does your business suffer more than 30% per 3 months due to the corona crisis? Then you can apply for the continued Reimbursement Fixed Costs SMEs scheme, or TVL. You can apply for TVL for a period of 3 months at a time. To be eligible, you need to meet a set of conditions. This set of conditions has been revised since the first instalment of TVL, and may be revised every 3-month period.

The main differences between the first and second instalments of TVL are:

  • After 1 October, you will be able to claim up to €90,000 per 3 months.
  • With a loss of turnover of 30%, the subsidy percentage is 50%. This can go up to 70% with a 100% loss of turnover. This increase in subsidy has yet to be processed. It will apply retroactively to entrepreneurs who have already applied for or are applying for the TVL before the 4th quarter.
  • Businesses can apply every 3 months, so in total 3 times, until 1 July 2021.

TVL in 4th quarter of 2020 open to all SBI codes

From 1 October - 31 March 2021, there will be no SBI code restrictions in place for receiving TVL. This means that all SMEs that meet the other requirements (up to 250 employees, 30% turonver loss, etc.) can apply.
Extra TVL for hospitality businesses, events organisers and their suppliers will be eligible for extra TVL support in the 4th quarter of 2020. Check the TVL article for more details and the conditions.

Credit guarantee and loan schemes remain available

The following credit guarantee schemes for businesses remain available after 1 October:

  • Credit Guarantee scheme for SMEs BMKB-C
  • Business Loan Guarantee scheme GO-C
  • Bridging loans for small companies KKC

Tax Administration: 36 months to pay taxes for which a special extension was granted

If you applied for, and were granted, a special tax payment extension to the Tax and Customs Administration before 1 October 2020, you can apply for an extra payment extension until 1 April 2021. Did you receive an extension earlier this year? Then the postponement will now automatically apply until April 1, 2021

Businesses will have 36 months in which to pay the taxes they were granted the extension for, starting (at the latest) on 1 July 2021. Read more about the Tax Administration corona measures in the article Tax and Customs Administration corona measures for businesses and employees.

New measures

  • The government wants to stimulate investment, to foster economic growth. Public investments to the sum of €2 Billion (for example infrastructure projects) will be pushed forward. Also, the government will invest in a national scale-up facility and make €150 Million available to supplement the Regional Development Societies' (ROMs) funding capability, so that they can continue to support innovative SMEs. Thirdly, the government has allotted €255 Million to co-financing EU programmes aimed at regional development, innovation, sustainability, and digitalisation.
  • A special compensation scheme will be set up for zoos that find themselves near the brink of bankruptcy, while financially sound before the corona crisis. This scheme is under construction.
  • A credit facility or voucher bank for travel guarantee funds is being set up by ANVR sector organization, the SGR guarantee fund and the government. Through this voucher bank, the travel guarantee funds can obtain an additional loan from the government. The guarantee fund can thus provide temporary credit to a travel organization that have issued vouchers for package tours.
  • Temporary Support Necessary Costs (TONK) Extra measures will be implemented for people that did not qualify for any existing financial aid. This extra help is offered through the municipalities. They will provide temporary support for necessary costs if these can no longer be paid due to a decline in income. It can apply to self-employed professionals who have a lot less assignments or employees who lose income due to quarantine. The government is setting aside 130 million euros for this in the first six months of 2021 and expects to complete the implementation of these measures with municipalities on 1 February 2021.

More support for the cultural sector

The government will support the cultural sector with extra funds, above and beyond the 'general' financial measures for businesses:
  • €200 Million will be allotted to cultural institutions that are crucial to the national infrastructure, artists and creative professionals.
  • €150 Million will be available to municipalities, to support the crucial local cultural infrastructure.
  • €64 Million will be available to maintain cultural heritage collections, offer guarantees for film productions, and help cultural and funding institutions bridge financial difficulties.
  • €40 Million will be available to independent theatres.
See the news item on Government.nl for more details.

Questions relating to this article?

Please contact the Netherlands Chamber of Commerce, KVK

This information is provided by

Netherlands Chamber of Commerce, KVK
Netherlands Enterprise Agency, RVO
Tax and Customs Administration, Belastingdienst