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Dutch Self-employment and COVID-19 TOZO Scheme explained

Yan Incorporation is striving, in the wake of the epidemic, to supply truthful and confirmed news. Today’s article will take a closer look at the Tozo scheme. The measure is part of the Dutch Government’s support bundle for mitigating the economic effects of the virus.


Profile


The Temporary bridging measure for self-employed professionals (Tozo) is aimed, as the name implies, at self-employed professionals such as a sole proprietor, zzp'er, partner in a general partnership, owner of a private limited company (dga), who are experiencing financial difficulties due to the corona crisis.


Details


The opportunities under this measure are two:


  • Income support It is dependent on the situation regarding income and household. The amount is not to be repaid, additionally no partner or capital test are present. Max amount €1,500 (net)

and/or


  • A loan for business capital The amount must be repaid, a delay for payment obligation can be requested. Max amount of €10,157


The scheme comes into effect with retroactive effect on 1 March 2020, and will remain in place until 1 June 2020 at least. Application are via municipality of residence.


Application procedure


For quicker disbursement and process, the viability test has been skipped. The user will receive income support for a maximum of 3 months within 4 weeks. In case of complications due to excessive rush, the municipality can provide the amount in advance.


Terms and conditions


Eligibility for this support comes with an extensive list of requirements:

  • you meet the legal requirements for being a business owner

  • you have all permits required for your profession or business

  • your business is still active unless activity has been ceased due tot the corona crisis

  • owners of a private limited company (dga's) must hold at least 50% of shares

  • you live in the municipality where you apply

  • your income has fallen below the social minimum and/or you have liquidity issues and you need a business loan

  • you are an established self-employed professional, ages between 18 and (state) pension age

  • your nationality is Dutch or equalled

  • you live and reside in the Netherlands legitimately* *Access to a loan for business capital under this scheme will be arranged through a Ministerial regulation if you live outside of the Netherlands but have a business in the country

  • you practice your business or profession in the Netherlands.** **Similar situation as above

  • you started your company before 17 March 2020, 18:45 and you meet the hours criterion (Min 1,225 h/year) if you started less than a year ago then a minimum of on average 23.5 hours per week applies


Important to point out is that foreign nationals with a regular temporary residence permit under the 'work as self-employed person' limitation who make use of the Temporary Bridging Scheme for Self-Employed Entrepreneurs (TOZO) will have no problems or consequences for the foreign national's right of residence.


Sources

https://business.gov.nl/subsidy/temporary-bridging-measure-self-employed-professionals-tozo/

https://nltimes.nl/2020/04/19/non-eu-residents-can-take-self-employed-benefit-without-hurting-legal-status-govt

https://www.rijksoverheid.nl/onderwerpen/coronavirus-financiele-regelingen/overzicht-financiele-regelingen/tozo

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