The Dutch Cabinet has introduced a broad emergency package to deal with the effects of the Corona crisis on the Dutch economy. One of these measures is the Now regulation. The NOW regulation aims to provide companies with a loss of turnover of more than 20% in the current special circumstances with a compensation for wages, on the basis of which they pay as much as possible the salaries of their employees during the months of March, April and May. can continue to pay.
The basic principle in the regulation is that the drop in turnover of the entire group is the basis for a larger composition of legal persons or natural persons, such as a group.
It has been decided to adjust the Now regulation for a group / operating company in the interest of maintaining employment.
Conditions for the group / operating company to qualify for the Now regulation
In the adjustment of the Now regulation, safeguards are built in to mitigate negative effects such as strategic behavior.
A. The operating company who appeals to the Now regulation must declare not to pay dividends, bonuses or repurchase own shares for 2020.
Groups of companies, whose operating company invokes the Now regulation, must declare that they will not pay dividends or bonuses or repurchase own shares for 2020 until and including the date of the shareholders' meeting in which the annual accounts for 2020 are adopted.
The change also means that operating companies can appeal for the NOW if they are part of a group that has little loss of turnover or even turns a profit and therefore has good opportunities to pay out dividends or bonuses or to buy back own shares.
B. Operating companies must have an agreement about job preservation.
The condition for the NOW is that an operating company (the employer) with 20 or more employees has an agreement on retention of employment with the union. Operating companies with fewer than 20 employees must have an agreement about job preservation with an employee representation.
C. There are no personnel companies within the group.
Groups of personnel BVs should always assume a decrease in turnover at group level. At the level of operating companies of this concerns, an operating company can only report its decrease in turnover for the payroll tax numbers that fall within its operating company. Accountants can investigate this.
Control guarantees
1. The other operating companies may not execute contracts or projects at the expense of the subsidy entity, which it would normally execute and which are different for that other entity. In or over the measurement period, orders may not be transferred at a late or later stage from the subsidy entity to another entity within the operating company.
2. If employees of the operating company undertake activities with another entity during the subsidy period, the loss of turnover of the operating company must be reduced by the resulting turnover when determining the subsidy.
3. The Transfer Pricing system as used in the 2019 financial statements or the most recently adopted financial statements is leading for the 2020 measurement period and may not be adjusted.
4. Movements in stocks of finished products are allocated to turnover.
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NAZALI TAX & LEGAL |