Measures Supporting the Economy in the Netherlands

Frank van der Heijden

The Dutch Government put in place several measures to support the economy during the difficult times we are currently facing due to the outbreak of the COVID-19 pandemic.

The situation in the Netherlands is somewhat different compared to the situation in many other European countries. Although many countries decided to close all shops, this is not the case in the Netherlands. In the Netherlands, everyone who is able to perform his/her job at a distance of at least 1.5m from his/her client is allowed to continue his/her business. One exception to this rule is the catering industry, which is forced to be closed until at least April 28th. Furthermore dentists and physiotherapists are only allowed to perform emergency treatments.

The support package which the Dutch government has put in place consists inter alia out of the following measures:

 

Tax deferral

All companies facing liquidity problems due to the outbreak of the coronavirus, may choose to delay the payment of multiple types of taxes due for three months. Fines and interests on taxes due are either eliminated or lowered.

Besides deferring tax payments, it is also possible to lower preliminary tax assessments. The latter is possible for both private persons as well as companies.

 

Social benefits & assistance

Entrepreneurs facing a severe decline in their income may opt for social transfers & assistance if they meet several criteria. One of the most important criteria is that the entrepreneur at hand is faced with an income that declined below the social minimum. If all criteria are met, an entrepreneur may opt for a transfer of € 1.500 per month (max. 3 months).

 

Supporting the Most Affected Industries

Companies operating in the most severe affected industries may opt for a grant of € 4.000. In order to apply for this grant, a company needs to fulfill certain criteria. These criteria relate to the industry in which the company is operating as well as the income that a company is still able to generate.

 

Avoiding Unemployment

In order to avoid a large number of layoffs, the Dutch Government supports entrepreneurs to pay the salaries of their employees. Depending on the turnover loss a company is confronted with, companies can claim up to 90% of their wages. This compensation can be claimed for both employees with permanent as well as temporary contracts.

 

In case you would like to receive more information about one of the above mentioned measures, we invite you to contact us via This email address is being protected from spambots. You need JavaScript enabled to view it.. We aim to answer your question as soon as possible.


XLNC ARCHIVE | 22 APRIL 2020

 

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