Saving or ending your business during the corona crisis
As an entrepreneur during the corona crisis you may run into financial difficulties. As soon as you notice that your company is struggling financially, it is important that you take action as soon as possible. You may consider ending your business, but first see what you can do to save your business.
Check the corona measures by the Dutch government
The government helps entrepreneurs affected by the corona crisis. See if you are eligible for the following schemes:
Reimbursement Fixed Costs (TVL)
The Reimbursement Fixed Costs (Tegemoetkoming Vaste Lasten, TVL) helps companies to pay part of their fixed costs. It is a compensation for fixed costs like rent and maintenance. Wage costs are not compensated under this scheme. Businesses can apply to the Netherlands Enterprise Agency until 1 July 2021. Check the article for the precise conditions.
If you are a retailer, and have had to close your shop due to the lockdown measures, you may be eligible for a compensation for stock costs: Stock Support Closed Retail (Voorraad Gesloten Detailhandel, VGD). Shops will not have to apply separately for this supplement.
Temporary Emergency Bridging Measure for Sustained Employment (NOW)
If you have less or no work for your staff and you expect a turnover loss of at least 20%, you will be able to claim NOW 3.0. NOW 2.0 has now closed.
Temporary bridging measure for self-employed professionals (Tozo)
The Tozo scheme offers temporary income support to self-employed professionals for a maximum of 3 months. This is a tax-free gift of up to € 1,500 per month that you do not have to repay.
Lend money with flexible conditions
The following loans have been relaxed or expanded:
- Business loan guarantee scheme (GO) for SMEs and large companies
- SME credit guarantee scheme (BMKB) for SMEs
- Credit Guarantee Scheme for Agriculture (BL) for agricultural entrepreneurs
- Microcredit provider Qredits for small businesses
- Corona Bridging Loan (COL) for start-ups, scale-ups and innovative SMEs
- Small Credits for Corona guarantee measure (KKC) for SMEs
- Export credit insurance for exporters
- Seed Capital Scheme for emerging technology entrepreneurs
Do the KVK corona measure check
With the KVK corona measure check, you can gain insight into the (tax) schemes that you may be eligible for through several questions. Do the check here.
Read more about Dutch government corona measures for entrepreneurs.
Check the Dutch Tax and Customs Administration corona measures
The Dutch Tax and Customs Administration has taken measures to help entrepreneurs with payment difficulties due to the corona crisis and to prevent additional costs. For example:
- Tax payment extension
- Decrease of tax collection interest and tax interest rates
- Legal entities such as a private limited company (BV) may offset losses when filing a corporate tax return
- VAT rules have been temporarily relaxed for loans of healthcare professionals and for the donation of medical supplies
- There are temporarily more flexible rules for payroll taxes for cross-border workers and travel allowance for employees working from home
Read more about the Tax and Customs Administration corona measures for entrepreneurs and employers.
WHOA and Time-Out Arrangement: putting your business on hold
Business is not going well. You have many debts, and you or your creditos are thinking about filing for bankruptcy. There may be something you can do to prevent that. If you and your creditors can reach an agreement for settling your debts, you can put your business on hold temporarily, making use of the new Homologation private agreement in bankruptcy Act (Whoa), which came into effect on 1 January 2021. The Whoa allows you to reach a binding agreement with your creditors, ratified by court, that they as well as you must honour. By making use of the Whoa, you may be able to tide over your business until after the corona crisis.
The Whoa is part of the Time-Out Arrangement or TOA, which will help businesses 'pause' their business so they can avoid going bankrupt. More will be announced as soon as the government has worked out the details for the TOA.
Ending your business: the most important steps
If there are no ways left to save your business, you can choose to end your business.
Keep your administration up-to-date
It is important to keep your administration up-to-date to gain quick and clear insight into your current financial situation. Also provide an report with expected turnover and sales of the coming year.
Here are the 10 most important steps to end your business:
- Inform your customers and suppliers that you are going to end your business.
- Apply for a dismissal permit if you have personnel.
- Check whether you are eligible for discontinuation relief.
- Check whether you are entitled to benefits such as the Financial support for self-employed professionals (Bbz) or Older and Partially Disabled Self-Employed Income Support (IOAZ).
- Deregister from the Dutch Commercial Register.
- Verify that your VAT ID and VAT tax number have been discontinued.
- Submit a final VAT return.
- Cancel your business insurance and subscriptions.
- Cancel the domain name of your website.
- Keep your business records.
Read more about ending your business.
Apply for debt restructuring
If you can no longer pay your debts, you can request debt restructuring. There are 2 types of debt restructuring:
- an amicable settlement (a voluntary payment scheme)
- the legal procedure Wsnp (the Debt Restructuring for natural persons Act) which follows if an amicable settlement fails.
Filing for bankruptcy
Can you no longer pay off your debts? Then the court may declare you bankrupt. Read how you can file for bankruptcy and more on bankruptcy procedure.
Contact the Netherlands Chamber of Commerce Financing Desk
Would you like advice about your personal situation? Contact the Netherlands Chamber of Commerce Financing Desk and you will be directed to an advisor.