Government to end support package for jobs and economy on 1 October 2021 | Deloitte Netherlands


Government to end support package for jobs and economy on 1 October 2021

The government has decided to terminate the NOW, TVL, Tozo and TONK schemes from October 1, 2021. Several tax support measures, such as the special deferral for tax debts, will also not be extended. However, a number of specific measures will remain in place.

8 September 2021

The Netherlands seems to have passed the peak of the corona crisis. Most of the restrictions have been lifted and CPB Netherlands Bureau for Economic Policy Analysis expects economic growth of between three and four per cent for both this year and next year. The government believes that continuation of the support measures would impede further economic recovery and decided to end the support package for jobs and the economy. Schemes such as NOW, TVL, Tozo and TONK will be discontinued on 1 October 2021. The same goes for most of the tax support measures, such as the special deferral of payment for tax debts.

Support measures abolished

For companies, the abolition of subsidy schemes such as NOW and TVL is particularly important. The NOW was intended as a contribution towards wage costs, while the TVL served to pay fixed costs. The government decision also heralds the end of the Tozo income support scheme for self-employed entrepreneurs who are in danger of falling below the minimum subsistence level, and the TONK scheme for private individuals who can no longer pay their housing costs.

Meanwhile, the nightlife industry is the only sector ordered by the government to keep their doors completely closed. As this situation is likely to continue after 1 October 2021, the government is working on a targeted compensation scheme for nightlife entertainment businesses.

Tax schemes

From a tax perspective, it is particularly important that, after 1 October 2021, it will no longer be possible to request a special deferral of payment for new tax debts that have arisen. Since the beginning of the corona crisis, a total of EUR 40.4 billion in tax payments has been deferred. Of this, currently 19.2 billion has to be paid back by about 270,000 entrepreneurs. The entrepreneurs in question will have to repay their debts as of 1 October 2022 and have five years to do so. Other tax measures, such as the untaxed travel allowance and the payment break for mortgages, will end on 1 January 2022.

Recurring and permanent schemes

After 1 October 2021, it will again be possible for companies to reduce working hours under the Special Regulations for Reduction in Working Hours (WTV). This scheme was put on hold with the introduction of the NOW scheme, but will now be resumed. Entrepreneurs who are faced with extraordinary, unexpected circumstances can request for application of the WTV. However, these extraordinary circumstances may not be corona-related. Self-employed entrepreneurs who applied for Tozo income support can use the regular support for self-employed persons (Bbz) after 1 October 2021.

Furthermore, a number of government guarantee and financing schemes will remain in force throughout 2021. These schemes are intended to facilitate market financing for companies in need of liquidity.

Finally, the government will present a package of social measures to assist people with a precarious position on the labour market. The efforts are mainly aimed at guiding people into new jobs, promoting extra training and practice-based learning as well as tackling youth unemployment.

Source: Einde steunpakketten voor banen en economie | Nieuwsbericht |

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