Corona Update & Incentives for Dutch Companies

Updated: Apr 30, 2020

Although we are far from being rid of the terrible COVID-19 virus and are still dealing with a lot of people who are sick or die, every entrepreneur realizes that we have to go further. Especially if you have recently started a Dutch company, the sales must go on. Now if possible, and later when everything is back to normal. Luckily, the Dutch government has relaxed the corona-measures yesterday a bit, although not as much as many Dutch businesses hoped for. Retail shops are still open, but many industries (from cinema to hairdressers) still have to keep their doors closed.

INCO Business Group is also suffering from the crisis. Fewer entrepreneurs decide to start a Dutch company, but we are not less busy.

In April the Dutch government announced far-reaching measures to support the business during the current crisis resulting from the coronavirus. Since then, our team has already assisted several Dutch companies, and they already received the first payments from the Dutch government (on average 5.000 EUR, to cover their wage costs for the month March or April).

Below you will find an overview of the government programs/incentives that have been introduced so far. In total, the Dutch government is planning to invest 90 billion euros, to keep the Dutch economy going.

1) Deferral -

For example, all entrepreneurs who request it are granted a deferment for the payment of tax for a period of 3 months. The recovery interest and tax interest are reduced to almost 0%. No default penalties will be imposed for income tax, corporate tax, payroll taxes, and VAT.

2) New, flexible arrangement for short-time working -

The existing scheme for applying for working time reduction will be immediately replaced by an emergency fund. Under this new scheme, an allowance for wages can be applied for up to 90% of the wage bill, whereby the UWV will pay an advance of 80% of the allowance. The condition is that there are no redundancies at the company and wages are paid. There must also be a drop in turnover of at least 20%, measured from 1 March.

Incidentally, all applications for work time reduction already submitted but not yet processed under the old scheme will be automatically transferred to the new scheme.

3) Temporary support for freelancers -

There will also be a temporary support scheme for freelancers. By means of an accelerated procedure, a self-employed person without employees can request benefits from his or her municipality for a period of three months. This benefit supplements the income to the social minimum and does not have to be repaid. In order to save time, the scheme will not have a partner or equity test. The scheme has not yet been worked out in detail. Hence the advice is to await further reporting on this point.

4) Broadening of the guarantee scheme -

In that case, the Entrepreneur Financing Guarantee scheme, which allows SMEs with a government guarantee to apply for a bank loan, will be expanded and certain micro-credit small businesses will be granted repayment of 6 months and an interest discount.

5) Guarantee scheme for agriculture and horticulture -

There is a temporary guarantee for working capital for companies in the agricultural and horticultural businesses. The government will use this scheme to guarantee the loans of agricultural entrepreneurs. To this end, the existing SME Guarantee Loan Scheme will be extended.

6) Compensation for specific sectors (Allowance for entrepreneurs affected sectors (Togs) -

Finally, there will be a compensation scheme for specific sectors that are most affected, such as the catering industry. The affected companies could receive a one-off payment of € 4,000 through a special emergency counter. The specific conditions with regard to the companies that qualify for this scheme are being further elaborated and the compensation itself is also still being worked on. This can therefore still change.

The Dutch government has decided on the following ruling to compensate for Corona-losses.

This one-off allowance of € 4,000 can be requested from the Netherlands Enterprise Agency (RVO) and applies to companies from certain sectors. Based on the (first) Standard Business Classification (SBI) at the Chamber of Commerce, it is determined whether the company is eligible for the scheme. The application can be submitted via Digid or E-recognition and can be made by someone else if desired.

The allowance is granted per company. A company with multiple branches therefore only receives € 4,000 once.

The conditions for the scheme can be found here:

An important condition is that your company is registered in the Trade Register under one of the required SBI codes.

You can find out which they are here:

More information can be obtained from the following link: