Updated: Mar 24, 2020
Limited opening hours, scarce clientele, low buying confidence. The COVID-19 has brought the global economy to its knees. Noticed in January, the virus is the main driver behind the recent stock market fall. Yan Incorporation, amid the current tragedy, is committed to deliver you the measures the Dutch and German governments have implemented/are in place to facilitate entrepreneurs in these difficult times.
The Ministry of Economic Affairs and Climate Policy announced on the 12th of March the main strategies to support businesses:
Extension of the SME credit guarantee (BMKB) scheme
Small and medium companies affected by the coronavirus will have easier access to financing from accredited entities, such as banks. The government has made 300 million euros accessible to entrepreneurs who miss out on income or production due to the situation.
These secure bank guarantees and bridge financing will be available from the 16th of March 2020 to the 1st of April 2021.
Self-employed professionals (zzp-ers) can make use of the BMKB if their legal business entity is a sole trader/proprietor, a general partnership (vof) or a private limited company (bv).
Extension of working hours reduction
Wouter Koolmees, Minister of Social Affairs and Employment, is investigating the extension of the reduction of working hours, a government regulation for employers in times of crisis. If due to certain circumstances, in this case the coronavirus outbreak, there is temporarily no work, the government compensates the lost hours for the employees.
Certain conditions must be met: the situation must result in a loss of work for a minimum of 2 and a maximum of 24 weeks, and there must be no work for at least a fifth of the staff.
Tax options for entrepreneurs
Special payment extension This benefit can be obtained by submitting a written request in Dutch with an extensive explanation on how the coronavirus has caused financial problems for your business. Additionally, you will have to prepare and send the Dutch Tax Administration a statement from a third-party expert (can be submitted separately within 2 weeks).
Reduction of provisionary assessment If you expect lower profits due to the coronavirus, and are currently paying a provisionary assessment for income tax or corporate income tax, you are able to change claim in the respective online portal.
The government announced, on 13 March, unlimited liquidity assistance to German companies hit by the pandemic. The decision has been made to ensure that the COVID-19 doesn't result in businesses collapsing and jobs being lost. Other actions include:
Germany’s center-left coalition agreed to increase public investments by 12.4 billion euros by 2024. Specifically, the procedure will be entirely funded by 2019's budget surplus.
Working hours support
Rules governing compensation for workers forced to cut working hours because of the crisis will be eased. The relaxed criteria will apply from April and will be valid up to the end of the year.
Would you like to plan an online appointment with one of our financial experts for clarity? Contact us at: https://www.yanincorporation.com/netherlands-contactus