The Dutch cabinet is making extra money available to entrepreneurs who have been hit disproportionately hard by the recent measures. The additional corona support measures include the following:
1. Temporary widening of TVL
The Fixed Cost Allowance (TVL) is intended to help entrepreneurs to pay their fixed costs, such as rent. The Dutch cabinet has decided temporarily to open the TVL to all sectors. € 140 million has been reserved for the temporary extension of TVL. Companies can submit an application from mid-November.
2. Subsidy for inventory and adjustment costs
The food service industries have built up stocks that they can no longer use because of the temporary closure. They have also often invested in staying open in the winter in a corona-safe way, for example by covering their terrace. In addition to the TVL, the cabinet is granting a one-off subsidy to compensate for these costs, of an average of € 2500. Entrepreneurs can apply for the subsidy from mid-November via the TVL application. € 40 million has been reserved for this scheme.
3. Events
Due to the corona measures, many events, such as music festivals and fairs, were canceled. The Dutch cabinet is introducing a one-off additional fee based on the TVL fee for the summer. It is expected to involve 800 event entrepreneurs, who receive an average of around € 14,000. An amount of € 11 million has been reserved for this.
4. Time-out arrangement (TOA)
The previously announced Time Out Arrangement is taking further shape. In order to enable the entrepreneurs to stop their activities temporarily and when the situation improves they can get back to work quickly. In this way, essentially healthy companies do not have to file for bankruptcy. The Dutch cabinet is now further elaborating this in the Private Agreement Homologation Act (WHOA).
5. (Temporary) jobs
The government is investigating whether (temporary) jobs for crisis support can provide relief to heavily stressed sectors, while at the same time helping people find temporary work.
6. Further measures
• € 40 million for "free theater producers": non-subsidized theater also has to contend with performances that have not been able to take place. The Dutch cabinet is meeting this group.
• The sport-specific package will be adapted and reopened for the period October 1 to December 31. This involves an amount of € 60 million.
• The cabinet is reserving another € 150 million to absorb loss of income at municipalities, on top of the previously reserved € 100 million.
• In order to continue to support companies in their liquidity needs the cabinet has decided to extend the corona guarantee schemes. The corona guarantee measures such as the KKC and the GO-C will be extended until June 30, 2021.
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NAZALI TAX & LEGAL |