The Government states in a letter to the House of Representatives that the support measures introduced in response to the coronavirus crisis are to be extended by nine months. This article outlines the main features of the NOW, TOZO and TVL schemes. In addition, sector-specific support is available and various tax measures are being extended.
NOW 3.0
The NOW scheme will be extended from 1 October by three periods of three months each. A separate application must be submitted for each of these periods. Business owners who have not claimed under NOW 1.0 and/or NOW 2.0 may claim under (one of the periods of) NOW 3.0.
The three periods are:
- October, November and December 2020;
- January, February and March 2021;
- April, May and June 2021.
The variables on which the NOW 3.0 benefit is based are, for the periods mentioned:
| Period 1 | Period 2 | Period 3 | |
| The fall in turnover must be at least | 20% | 30% | 30% |
| Reimbursement (of the wage bill) | 90% (of which 80% is paid out) | 70% | 60% |
| Accumulation of employers’ contributions, holiday pay | 40% | 40% | 40% |
| Maximum wage (per month) on which the benefit is calculated | € 9.538 | € 9.538 | one times the maximum daily wage |
| Advance payment | 80% | 80% | 80% |
Under NOW 3.0, the Government is allowing employers to reduce their total wage bill without this leading to a reduction in the NOW subsidy. This exemption amounts to 10% in the first period and increases to 15% and 20% in periods 2 and 3 respectively. The reduction in the subsidy in the event of redundancy on commercial grounds has been abolished under NOW 3.0.
TOZO
The Temporary Bridging Scheme for Self-Employed People (TOZO) is also being extended by nine months. This scheme will therefore run until 1 July 2021.
However, a limited means test is being introduced under TOZO 3. This test is designed in such a way that business owners are not forced to liquidate parts of their business. The test means that entrepreneurs with more than €46,250 in immediately available funds (cash, bank and savings balances) will not be eligible for a benefit payment. The means test will take the form of a declaration to be made by the self-employed person, which will be subject to random checks.
TVL
The 9-month extension also applies to the SME Fixed Costs Allowance (TVL). As with the NOW, the scheme is divided into three periods. In the first period, the same conditions apply as under the current TVL scheme. This means that the scheme is available to businesses with a loss of turnover exceeding 30%.
In the second tranche, this will be increased to 40%, and in the third tranche, only business owners with a loss of turnover exceeding 45% will be eligible for the TVL. Throughout the entire duration of the scheme, the TVL reimburses 50% of fixed costs (the amount of which is set at a flat rate for each sector). The maximum grant amount will be increased from (per 3 months) €50,000 to €90,000.