Economy

€ 7.6 billion extra in aid packages: these are the most important changes

It has now been almost a year since the pandemic hit us, said Minister Wouter Koolmees of Social Affairs on Thursday evening during the press conference in which the extensive package was explained.

Choose between evils

“Our stamina has been tested. Entrepreneurs have scraped the last bit of fat from their bones. Unfortunately, that’s how it is. It’s encouraging to see how resilient we are, but we shouldn’t count ourselves rich: the social and economic consequences are enormous. ”

Expanding government support is a deliberate choice, added Finance Minister Wopke Hoekstra. “That creates an extra burden of debt, but it means choosing from multiple evils. If we do nothing, the damage will be greater for the economy, for the people in the country and for the treasury.”

The expansion of the package, for the first and second quarters of 2021, therefore involves € 7.6 billion. That goes, among other things, here:

Expansion TVL

The government is expanding the Fixed Cost Allowance, the subsidy for SMEs who lose turnover due to the corona measures and therefore have difficulty paying their fixed costs.

The threshold for the loss of turnover remains 30 percent, but the compensation will increase from 70 to 85 percent. The maximum amount that can be paid out for this subsidy will also increase: from 90,000 euros for the fourth quarter of 2020 to 330,000 euros as of 1 January 2021.

This is partly because the cabinet also wants to give larger companies access to the scheme. The limit of a maximum of 250 employees is released.

Extension of TVL for small entrepreneurs

In order to better compensate small entrepreneurs, such as hairdressers and pedicures, the lower limit for the monthly fixed costs will be lowered. That was 3000 euros and will now be 2000 euros.

Small entrepreneurs also receive more money from the TVL. Their minimum subsidy amount will increase from 750 to 1500 euros.

In total, the TVL for the first and second quarters of this year is worth 3.8 billion euros.

Expansion NOW

The Temporary Emergency Measure Bridging Employment, NOW for short, will also be increased. The subsidy, with which employers can continue to pay their employees, will increase from 80 to 85 percent of the wage bill.

New rules Tozo

For the entrepreneur variant, the Temporary Bridging Scheme for Independent Entrepreneurs, this can be applied for with one month retroactive effect from 1 February. The power test that would take effect on the fourth Tozo, on 1 April, will be canceled.

The hours criterion for the Self-Employed Deduction, for example, will be relaxed again, until 1 July.

Tax deferral

Entrepreneurs can apply for a tax deferment or an extension until 1 July. This also applies to entrepreneurs who have not yet done so. The date on which entrepreneurs will start paying back will be moved to October 1, 2021. They will then have 36 months to repay the tax debt.

The Tax and Customs Administration also wants to take a more flexible look at the cancellation of such debts, if a repayment scheme is not sufficient. There will be an arrangement for this in the second quarter.

Starters

It turned out to be impossible to provide newly started companies and entrepreneurs within the TVL with financial support. That is why the caretaker cabinet is working on a separate scheme for entrepreneurs who started their own business between 1 January and 20 June 2020.

This arrangement must be in place on April 1. According to Minister Bas van ‘t Wout, Eric Wiebes’ successor at Economic Affairs, the current turnover is compared to the turnover in the third quarter of last year.

Starters who started between 1 January and 15 March 2020 are also eligible for the TVL for the first quarter of this year.

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