Government measures in key jurisdictions 3rd edition final - Flipbook - Page 128
The Netherlands
Chip potato growers received compensation in relation to the quantity of potatoes they still had in
storage. The compensation applied to potatoes that can no longer be processed into chips for this
season. The total compensation amounted to 40 percent of the average market value of the potatoes
over the period from September 2019 up until February 2020. A total of EUR 50 million was made
available to this end.
The schemes were not extended beyond 18 June 2020. Further details on the measures may be found
here and here.
Employment
•
What financial support
is the government
providing to
businesses and to
individuals on
employment issues?
A subsidy is available for employers that pay Dutch wages and expect to see at least a 20% decline in
turnover, for which the government has made available EUR 12.8 billion.
The scheme is known as NOW 2.0 and replaces the preceding furlough scheme.
The benchmark is the average turnover over the course of four months in 2019 for companies which
existed in 2019. The subsidy is up to a maximum amount of 90% of the wage bill (the wages of all
employees) for the months June, July, August, and September. Only in the event of a 100% decline in
turnover, will 90% of the total wage bill be paid out. If the decline in turnover is lower, the subsidy will
be set at a proportionately lower level.
Based on the application, the Dutch Employee Insurance Agency (the UWV) will pay an advance
payment of 80% of the estimated amount of the subsidy based on the expected decline in turnover
and the employers’ actual wage costs in March 2020. A final settlement will take place on the basis of
the actual turnover which normally requires an audit opinion.
In cases of a composition of legal entities, the decline in turnover is assessed at group level. This means
that if a group as a whole has a decline in turnover of less than 20%, the individual members of that
group are not eligible for a NOWsubsidy.
A maximum of twice the maximum daily wage per month per individual employee is taken
into account as salary. Compensation for each individual employee’s wage is capped at EUR 9,538 per
month. As of June 2020, a correction to the subsidy will be applied in case of dismissals. However, the
penalty for making employees redundant will no longer apply. Furthermore, the subsidy may also be used
for purposes other than the payment of wage costs. When using the scheme, companies are prohibited,
amongst other things, to make profit distributions to shareholders, pay bonuses to the board and
management, and/or repurchase their own shares. Furthermore, companies must declare that
employees will be encouraged to retrain. Applications may be submitted via UWV.
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•
A measure is available for the self-employed registered in the business register before 17 March 2020.
The support may take the form of a benefit payment up to a certain maximum amount (social
minimum) and/or a loan for working capital to solve liquidity problems. No viability test will be applied
so that the requests may be processed quickly, i.e. 4 weeks instead of the regular 13-week period. The
level of income support depends on income and the household composition but is a maximum
ofapprox. EUR 1,500 per month (net). This income support does not need to be paid back.
The accelerated procedure also applies to loan applications for working capital up to a maximum of EUR
10,157. In addition, a lower interest rate than the regular rate will be applied on the loans. For more
information, see here.
•
On 20 May 2020, the Dutch government announced that it intends to extend the scheme, which means
that entrepreneurs can apply to their municipality until 1 October 2020. The income support under the
extended scheme can only be granted for the period between 1 June 2020 and 1 October 2020. The
difference between the schemes is that the income support under the extended scheme is subject to a
partner income test. If the household income is above the social minimum, entrepreneurs are not entitled
to the income support under the extended scheme. To apply for a loan of working capital, the applicant
must declare that no suspension of payment or bankruptcy for the applicant, their company or one of their
partners (vennoten) has been applied for or obtained. The amount of working capital granted under the
schemes jointly is capped at EUR 10,157.
Government measures in key jurisdictions