Obligation to repay corona support: what you need to know
Did you receive support from the government to deal with the corona crisis? For example, NOW, TVL, Tozo, or tax payment extensions? Many support measures have been extended due to renewed corona restrictions and lockdown. You may have to repay some types of support. And if you got an extension for tax payments, you will need to start paying these soon. This page explains all you need to know and do.
You may have received financial corona support from different organisations. This means that if you do have to repay, you probably cannot repay in one go: you may have to repay several amounts of money to several organisations.
We will continue to update this page as details change, so check here.
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 you had 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. If you have debts, make an overview. Are you unable to pay your bills? Talk to your creditors, and ask them if they are willing to let you repay in instalments; draw up a payment plan.
Do you worry that your business may not be able to continue? KVK has a special Business in trouble section that may help you find the way forward.
Do I need to repay?
What to repay
In most cases, you will not need to repay the TVL (Reimbursement Fixed Costs). It 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 (or 20% in Q4 of 2021)? You will have to repay the full amount you received for that period. 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 established to enable you to pay your staff. One of the conditions for receiving NOW is that your turnover loss was at least 20%. After your application you received an advance payment. After every application period, you could ask 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 a gift. It 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 have to report this to your municipal authorities. You may have received too much Tozo income support and have to repay (part of) it. You have to repay the Tozo business loan.
As of 1 July 2022, you have to repay the Tozo for business capital loan. You are given 6 years to do this. Until 1 July 2022, your municipality did not charge any interest. After 1 July 2022, you 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. 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 Credit Guarantee Scheme for Agriculture corona (BL-C)
Repaying the SME credit guarantee corona (BMKB-C)
Repaying the Corona bridging loan (COL)
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
Special tax payment extension
As of 1 April 2022, you can no longer get a tax payment extension. And you have to pay new tax obligations on time again.
Pay off your tax debt with a payment arrangement with the Tax Administration
Have you previously received a special extension due to corona? You must pay off your tax debt from 1 October 2022. Find out what you must do.
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External links
Questions relating to this article?
Please contact theNetherlands Chamber of Commerce, KVK