Ailing companies that are in trouble due to the corona crisis can turn to the government again after June. The current bailout package will expire at the end of June, but will be extended again. That already previously taken decision the outgoing ministers Hoekstra, Koolmees and Blok announced today.
The economy is moving in the right direction, but many companies and the self-employed are still insecure. That is why the support packages are now being extended to help them, and even widened a little bit. The cabinet is allocating six billion euros for this. But the government will not continue to do so indefinitely, is also the message.
According to the cabinet, the support packages are designed in such a way that those who lose a lot of turnover also receive more support. As the economy “opens up further and companies have more turnover again, they grow out of the support packages”. That situation is getting closer, said Koolmees. Hoekstra also said that support will end at some point. “Our pockets are deep, but we can only spend the money once.”
Starters
The existing schemes for companies and the self-employed (TOZO, NOW and TVL) are now being extended by three months. What is new is that the cabinet is also more accommodating to start-up entrepreneurs or companies that are growing rapidly.These sometimes got into trouble because for the calculations they had to fall back on a period in 2020 when they hardly generated any turnover. This will be adjusted: February 2021 may also be used as the reference month.
In addition, there will be more time for companies and entrepreneurs to pay off tax debts. For example, from October 1, 2022, they will have five years to pay outstanding amounts. The cabinet does not want to cancel the tax debts. This is not considered fair to companies that have worked hard to pay their taxes on time. The interest on tax debt will go down and will not return to the old level until 2024.
There are also changes to allow more companies to qualify for support through the TVL and NOW schemes. For example, the benefits for the Fixed Cost Allowance (TVL) are now settled against the loss of turnover. This link is being released, so that companies can request more wage support.
View the explanation of the ministers Koolmees and Hoekstra here:
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