Keywords: Corona Crisis, Support Packages Jobs and Economy, Discontinuation, New Structural Situation.

At the start of the Covid-19 crisis, the Dutch government launched general support measures to absorb the temporary blow to companies, entrepreneurs and employees as a result of the corona crisis. In an earlier letter[1] of 29 June 2021, the government indicated that it did not wish to extend the general support packages from the fourth quarter of 2021. The Netherlands is now in a new phase in which the economy is recovering, there is a shortage on the labor market, the general support packages appear to have a disruptive effect on the recovery of the economy and due to the vaccination policy the contact-limiting measures are being phased out as well. In this new phase, the advantages of a generic package do no longer outweigh the disadvantages. That is why the generic support package will end on 1 October 2021. This means that the Temporary Emergency Scheme for Job Retention (NOW), Reimbursement Fixed Costs (TVL), Temporary Self-Employment İncome Support and Loan Scheme (TOZO), Temporary Support Necessary Costs (TONK) and various other tax measures will not be extended anymore as from this date. The adjustments and/or changes will be discussed further below.

As it goes for Tozo, which ends per 1 October 2021, the entrepreneurs who still need financial support can apply for and rely on the regular Bbz-scheme (Allowance for Self-Employed scheme) as  from 1 October 2021. The implementation of the Bbz-scheme is simplified until the end of this year in three ways:

  • Not applying the asset test.
  • Making it possible to apply for the Bbz benefit with retroactive effect (max. two months).
  • Determining the income and the amount of the Bbz benefit per calendar month (instead of per financial year) and the direct provision of the Bbz benefit free of charge (and not as a provisional loan). As of 1 January 2022, the municipalities will assess the Bbz-scheme and allow in conformity with the old way.

The Working-Time Reduction scheme (WTV-scheme) was put out of operation due to the introduction of the NOW. After the termination of the NOW, the WTV-scheme will return on 1 October 2021[2]. The WTV-scheme aims to support employers who are affected by an extraordinary circumstance outside the Corona related circumstances that does not belong to the entrepreneurial risk.

To facilitate the transition to the new structural situation, several schemes will remain in place in the fourth quarter of this year and those that will no longer be extended, are supported by additional policies that support adjustments. The market financing such as the corona financing schemes (i) the small credit corona for micro and small businesses (KKC), (ii) Qredits bridging loan for entrepreneurs in small and medium-sized businesses, (iii) the guarantee of SME loans for SMEs (BMKB-C) and (iv) the state guarantee on medium (large) loans for large and medium-sized companies (GO-C) will remain in effect until the end of 2021.

As of 1 October 2021, entrepreneurs are again obliged to meet and repay their current tax obligations on time. The repayment term is extended to sixty months; this means that the accrued tax debt must be repaid in full by 1 October 2027 at the latest. This will also apply to entrepreneurs who have not submitted an extension request. The recovery interest, which is 0.01% up to and including the end of the current calendar year, will be set at 1% as of 1 January 2022. On 1 July 2022, the interest will be increased to 2%. After this, the interest rate will be set at 3% as per 1 January 2023, and then the usual rate of 4% will be applied as from 1 January 2024. If no deferral of payment is made, the Tax and Customs Administration will gradually start collecting the tax debts for all private individuals and entrepreneurs as of September 2021.

The outgoing cabinet has decided to continue four fiscal corona measures until the end of the fourth quarter of this year:

  1. The agreements with Germany and Belgium on the taxation of cross-border employees will be extended until the end of the fourth quarter for technical reasons.
  2. The exemption for a number of German net benefits will continue until the end of the year.
  3. The tax-free travel allowance will be continued.
  4. The measure regarding the retention of the right to mortgage interest deduction for homeowners if they receive a mortgage payment break from their mortgage lender will also be extended until the end of the year.

Finally, the cabinet has indicated that it will support entrepreneurs who, despite the postponed repayments and longer repayment terms, are forced to terminate their business.

Partly this is done via the Homologation Underhand Agreement Act (WHOA), through which the entrepreneurs’ debts are rescheduled and bankruptcy can be prevented.

In addition, the Time Out Arrangement credit (TOA-credit) enables the entrepreneurs to make a new start through a WHOA process. The TOA-credit further enables the entrepreneurs, which are sufficiently viable, to make expenditures and investments for the (re)start of their business activities.

There is also a possibility that entrepreneurs with a residual debt, for which they may be privately liable, may count on help with debt counseling[3].

For more information and/or assistance, please contact:

[1] The letter from the Ministry of Economic Affairs and Climate Policy dated June 29, 2021 regarding a reconsideration of the support package in the third quarter and announcement of the support package for the fourth quarter with the reference CE-AEP / 21170311.

[2] See also

[3] The letter from the Ministry of Economic Affairs and Climate Policy dated August 30, 2021 regarding the support and recovery package from the fourth quarter of 2021 with the reference number CE-AEP / 21220232.


This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.