Obligation to repay corona support: what you need to know
Did you receive support from the government to deal with the corona crisis? You may have to repay some types of support, even when you got an extension. Which organisation has paid out coronavirus support varies per scheme. This page explains all you need to know and do.
Do you have to repay corona support?
Whether or not you need to repay, and how much, depends on your situation. Examples of when you will have to repay are:
- The money you received was a loan. Examples: Tozo credit, or the small credits guarantee for SMEs (KKC).
- You received too much money. For example, because your turnover was higher than expected. The organisation that paid the corona support money will calculate for each application period whether or not you need to repay them.
- You were granted a special tax payment extension. If you owe tax money, you always have to repay.
What can you do?
Make sure that your business records are up-to-date and correct. Are you unable to pay your bills? Talk to your creditors, and try to arrange a payment plan.
Do you worry that your business may not be able to continue? See the KVK Business in trouble roadmap for advice on possible next steps for your business.
Do you have problematic debts?
Discuss your debts and take action as soon as possible. See the step-by-step guide for dealing with debts on the KVK website.
Which corona support do I need to repay?
What to repay
The TVL (Reimbursement Fixed Costs) is a tax-free gift. Unless your turnover was higher than expected in the period for which you have received TVL. In that case, you have to repay the difference. Was your turnover loss less than 30% in a quarter for which you received TVL? Then you will have to repay the entire amount. For the fourth quarter of 2021, this threshold was temporarily lowered to 20% due to the lockdown. The Netherlands Enterprise Agency (RVO) will have sent you a confirmation letter. This states per quarter whether you have to repay. RVO does not charge interest to entrepreneurs who have to repay. And you may be eligible for a payment arrangement.
What to repay
The NOW (temporary emergency bridging measure) was intended to help you pay your employees. One of the conditions for your application was that you had suffered a minimum loss of turnover of 20%. After submitting your application, you received an advance payment. After every application period, you could request the Employee Insurance Agency (UWV) for a final settlement. Please note: if you did not do this, you had to repay the entire advance for that period.
What to repay
The Tozo (temporary bridging measure for self-employed professionals) consisted of 2 parts:
- income support
- loan for business capital
The Tozo income support was an addition to your income, so that you received the social minimum. You do not have to repay this money. Unless it turns out your income during the period over which you received Tozo income support was higher than expected.
You must repay the loan from the Tozo scheme for working capital from 1 July 2022. You will have 6 years to do so. Until 1 July 2022, your municipality did not charge interest. After 1 July 2022, you will pay 2% interest.
What to repay
The TONK (temporary support for essential costs) was meant to help you pay for your living costs. For example, if you could no longer pay your rent, your mortgage instalments, or your municipal taxes due to the corona virus. The terms and conditions for receiving TONK could differ between municipalities. For example, your municipality was free to determine how much capital you are allowed to have.
Repaying corona loans
To support entrepreneurs, the government has expanded several existing loans. Such as the SME credits guarantee scheme (BMKB), Business loan guarantee scheme (GO), and Seed Capital scheme. There are also new credit loans such as the Corona re-launch credit for SMEs (TOA) and the Small Credits Guarantee for SMEs scheme (KKC).
The conditions for repayment are different per scheme. Check with the organisation that provided the loan.
Repaying the SME credit guarantee corona (BMKB-C)
Repaying the Business loan guarantee corona (GO-C)
Repaying the Small credits guarantee for SMEs (KKC)
Repaying Corona bridging credit
Repaying Corona relaunch credit for SMEs (TOA)
Paying tax debts
If you were granted special deferral of payment of taxes, you will have started paying off the tax debt you have accumulated from 1 October 2022 onwards. Find out more about tax paying arrangements.