The Emergency Package 2.0, presented by the Government on 20 May 2020, also provides for the continuation of the emergency helpdesk until 1 October 2020 (initially, an extension until 1 September 2020 had been planned, but following debates in Parliament, this has been extended by one month). This scheme is now known as the Allowance for Entrepreneurs in Affected Sectors (TOGS). It will become the SME Fixed Costs Allowance (TVL).
TOGS
Under the TOGS scheme, business owners are eligible to receive a one-off grant of €4,000. The conditions are that the business:
- operates under a scheme designated for that purpose SBI code (the application may also be based on the SBI code of one of the company’s ancillary activities);
- during the period from 16 March to 15 June 2020 inclusive at least €4,000 in lost turnover expected as a result of the coronavirus crisis;
- at least €4,000 in fixed costs has, even after making use of other support measures made available by the government as part of the response to the coronavirus crisis;
- has not received €200,000 or more in state aid in recent years (de minimis);
- is not based at the business owner’s home address (this does not apply to catering businesses and a number of other specific situations).
The one-off payment from the TOGS scheme is exempt from income tax and corporation tax, but is treated as turnover for the purposes of the Emergency Bridging Measure for Job Retention (NOW).
The application Applications for TOGS may be submitted to the Netherlands Enterprise Agency between 27 March and 26 June 2020 (RFO).
TVL
The SME Fixed Costs Allowance is a grant of up to €50,000 (a maximum TVL of €20,000 had been announced, but this was increased following debates in the House of Representatives) to businesses in the same sectors (SBI codes) as those covered by the TOGS scheme. This grant is intended to cover the fixed costs of these businesses.
In addition to most of the conditions applicable under the TOGS scheme, a further condition is that the business must have suffered a loss of turnover of 30% or more during the three-month period covered by the TVL (1 June to 30 September 2020 inclusive). The amount of the payment (up to €50,000) then depends on:
- size of the business (businesses with more than 250 employees are not eligible for TVL);
- the amount of the fixed costs;
- extent of the loss of turnover.
The TVL grant is also a donation, which is exempt from income tax and corporation tax, but counts as turnover for the purposes of the NOW scheme.
Furthermore, the Government will explore, together with the relevant sectors and local authorities, the options available to enable businesses to operate more profitably in those sectors that are permitted to reopen. Ideas under consideration include extending the season and allowing longer opening hours.
The TVL was announced in a Letter to Parliament on the Emergency Package for Jobs and the Economy 2.0 dated 20 May 2020. The amendments resulting from the parliamentary debates can be found in a Chamber letter dated 28 May 2020. The formal legal documentation will follow shortly.
For the final arrangements, please see our factsheet: Emergency Helpdesk 2.0.