8 Measures Designed to Save the Dutch Economy
Due to the COVID- 19 pandemic, the Dutch government has guaranteed to implement a series of important economic measures. The measures are made to protect the jobs and livelihoods of the citizens. The government try to minimise the impact of the crisis on self-employed people, small and medium-sized companies. For as long as necessary, billions of euro will be invested into the dutch economy every month.
Our specialists have selected some of the most important economy measures. If you want more information about the Dutch business environment, do not hesitate to contact us!
1. Establishing and implementing a temporary system that allows companies to ask for help for paying the employees
Any business that expects to lose at least 20% of its revenue can request help from the Employees Insurance Agency. They will receive an allowance that will allow them to pay their employees' salaries for three months.
2. The government has established an additional support for independent contractors
The authorities will implement a scheme of relaxed rules to support the independent contractors and allow them to continue their operations. The scheme will be implemented by the municipal governments.
3. Relaxed rules for the payment of taxes
The deferment of payment applies to income tax, corporation tax, payroll tax and value-added tax (VAT).. The interest on overdue tax normally levied after the term of payment has expired will be temporarily lowered from 4% to nearly 0%.
4. Broadening of the scope of the Guarantee Corporate Financing scheme
Companies that are having difficulty obtaining bank loans will have recourse to the Guarantee Corporate Financing scheme (GO scheme). The government has proposed that the guarantee ceiling for the GO scheme be increased from €400 million to €1.5 billion.
5. Interest-rate deduction on Qredits microcredit for small enterprises
Qredits is implementing a temporary measure, under which small companies impacted by the COVID-19 pandemic will be granted a six-month deferment of repayment, and the interest rate on their loans will automatically be lowered to 2%. The state will allocate up to €6 million.
6. Guarantees for companies in the field of agriculture and horticulture
The government, for a period of time, will underwrite working capital granted to horticultural companies and farms as part of the Guarantee SME Loans scheme for medium-sized farms.
7. Meetings about the tourist tax and the arts and culture sector
The government, toghter with the Association of Netherlands Municipalities, will discuss the possibility of waiving provisional local tax assessments to be paid by companies and to retract previously imposed tax assessments.
8. The government has developed a compensation scheme for the affected sectors
A number of sectors such as tourism and entertainment will be hit particularly by the restrictions imposed by the authorities. Therefore, the government is implementing a compensation scheme with measures for the companies active in the aforementioned fields.
We applaud these measures and we see them as a first step which no doubt will be beneficial to the economy. We believe that now, more than ever, it is very important to support the local and self-employed business. Together we are definitely stronger.
For full information on the current legislation related to foreign investments, please contact our lawyers in Netherlands.