Government once again expands corona support for entrepreneurs | Deloitte Netherlands


Government once again expands corona support for entrepreneurs

On the back of the extension of the tightened corona measures also in the first quarter of 2022 the government will open the NOW and the TVL.

16 December 2021

Temporary Emergency Bridging Measure for Sustained Employment

(Noodmaatregel Overbrugging voor Werkgelegenheid , or NOW)

With the tightened coronas measures being extended, the recently announced support package is once again substantially expanded, by almost EUR 4.4 billion. A significant part of these funds will be used to extend the wage subsidy until the first quarter of 2022 (NOW 6). Earlier on, this scheme had already been opened for the months of November and December 2021 (NOW 5). The subsidy rate is 85% for both schemes.

Most of the NOW 5 conditions, such as the maximum daily wage to be taken into account and the 40% flat-rate bonus, are the same as those for NOW 4, as is the prohibition to pay any dividends or bonuses. There are some differences though, such as the possibility for companies that started in the period of 1 February 2020 through 30 September 2021 to now also apply for the scheme. In addition, the wage bill exemption percentage has been increased to 15% (NOW 4: 10%). Hence, an employer's wage bill may decrease by a maximum of 15%, without this affecting the determination of the final subsidy amount. In addition, the so-called Short-time Working Scheme (Werktijdverkortingsregeling, or ‘WTV’) continues to be available. On the other hand, entrepreneurs no longer have freedom of choice in terms of reference periods. For NOW 5, the wage bill reference month is September 2021, while the loss of turnover is calculated over the months of November and December 2021. NOW 5 can be applied for up to and including 31 January 2022. The NOW 6 conditions will be announced in January 2022.

Reimbursement Fixed Costs

(Tegemoetkoming Vaste Lasten, or ‘TVL)

The TVL has been extended as well, to the first quarter of 2022. The subsidy rate is 100% in both Q4 2021 and Q1 2022. Entrepreneurs whose turnover loss is at least 30% compared to the reference period (Q4 2019 or Q1 2020), and who also meet the other conditions, can apply for TVL for their fixed operating expenses (fixed percentage per sector). The TVL for SMEs is capped at EUR 550,000 while this cap is EUR 600,000 for non-SMEs.

Tax deferral and interest on overdue tax

The tax deferral for entrepreneurs is extended until 1 February 2022. So, the quarterly tax returns for Q4 2021, which would normally be paid in January 2022, will also fall under this deferral. Entrepreneurs who had previously been granted a special deferral and who have not yet paid all tax liabilities, will automatically receive a deferral. Entrepreneurs who have not yet used the special deferral, or who have already repaid all liabilities, can still apply for deferral for newly arising tax liabilities in Q4 2021. In January 2022, the government will decide whether a further extension is necessary.

In addition, the announced increase in the interest on overdue tax will be postponed for six months. The initial plan had been to increase the interest rate to be charged from 0.01% to 1% on 1 January 2022, but this will now be 1 July 2022. Subsequently, the rate will increase by 1% every six months until it reaches its former level of 4% on 1 January 2024. This does mean, however, that the payment discount on provisional income tax and corporate income tax assessments for 2022 will also be calculated at an interest rate of 0.01%.

Other tax measures

The agreements with Belgium and Germany on the taxation of frontier workers have been extended to 1 April 2022. Other approvals, though, such as those regarding the untaxed travel allowance and the payment break for mortgages, will not be extended and will expire on 31 December 2021.


The Temporary Bridging Scheme for Self-Employed Professionals (Tijdelijke overbruggingsregeling zelfstandige ondernemers, or ‘TOZO’) will not be reopened. Self-employed persons can apply for the Assistance for Self-Employed Professionals (Bijstand voor zelfstandigen, or ‘Bbz’), although some conditions are relaxed until March 2022, such as non-application of the assets test. The scheme can be applied for retroactively.

Other support measures

In addition to the above support measures, the government has reopened or expanded a number of sector-specific schemes.

In the events sector, the Provisional Scheme for the Subsidy of Events COVID-19 (Tijdelijke regeling subsidie evenementen, or ‘TSREC’) and the Additional Allowance for Events (Aanvullende Tegemoetkoming Evenementen, or ‘ATE’) are extended until the third quarter of 2022. The schemes apply if the central government bans events in that period. A 90% subsidy rate applies for the first quarter of 2022, after which an 80% subsidy rate applies for the remainder of the term. Further conditions for these schemes will be announced in early 2022.

Support for the cultural sector will also be continued until January 2022, also through the supplementary scheme at the Performing Arts Fund NL. This has been increased to a compensation capped at 85% of the tickets of the regular capacity, up from 55% of that capacity.

In the sports sector, the Allowance for Amateur Sports Organisations (Tegemoetkoming Amateursportorganisaties, or ‘TASO’) and Compensation for Lessors of Sports Facilities (Tegemoetkoming verhuurders sportaccommodaties, or ‘TVS’) for amateur sports will be reopened until January 2022. Funds will also be made available for municipalities to support ice rinks and swimming pools.

Finally, the government indicates that any future support packages must strike a new balance between business risk and government support. A long-term vision will be ready in the first quarter of 2022.


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