Among the many business impacts brought on by the COVID-19 pandemic and resulting economic unrest are a slew of legislative changes and recommendations. Here are some important updates to know about if you have employees, and thus payroll, in the Netherlands.
Extensions for compliance filings
Currently, there are no changes to deadlines for compliance filings in the Netherlands.
Extensions for tax payment deadlines
Payment for corporate income tax, individual income tax, wage tax and VAT assessments may be extended for up to three months without an accountant’s declaration. As additional relief, the Dutch government won’t impose penalties for non-payment or late payment, and default penalties will be reversed.
Special considerations or recommendations — as an employer or for employees — to keep in mind
In response to the COVID-19 crisis, the Dutch government instituted the Temporary Emergency Bridging Measure for Sustained Employment (NOW) in place of the regular short-time working scheme to provide financial help for employers to pay their employees’ wages. Employers that expect a turnover loss of at least 20% can claim compensation toward wages — a maximum of 90% compensation depending on rate of turnover — for three months, with the opportunity to extend an additional three months.
Programs or initiatives to help offset financial impacts
The Dutch government has announced a range of programs to help businesses affected by the crisis, including:
- Entrepreneurs most affected by COVID-19 measures, in sectors such as hospitality, entertainment and travel, may be eligible for a one-time, set reimbursement of 4,000 euros. Dutch entrepreneurs can find out if they are eligible here, and can apply for the reimbursement here.
- Self-employed professionals can receive income support for three months. As part of the program, the request procedure will be accelerated, with income support distributed within four weeks. The amount of the support depends on income and household composition, and is capped at 1,500 euros (net) per month. The program also includes a loan for business capital, capped at 10,157 euros, which must be repaid, although at a lower interest rate than the regular Bbz. Interested professionals should check with their local municipality’s website for information on applying.
- Farmers and agricultural entrepreneurs are eligible for expanded loan options, including the Credit Guarantee Scheme for Agriculture, of which the government is a guarantor for part of the loan. Farmers wishing to apply for a loan are to do so through their banks.
Help for employers to keep your employees informed
The Dutch government has prepared a list of FAQs to help employers communicate COVID-19 information with their employees. The information, available in several languages, can be found here.
Although this information is correct and up-to-date as of the 9th of April 2020, changes are happening frequently. Please seek professional advice as you work through payroll and HR challenges in the Netherlands.
The information provided on or through this website is for informational purposes only and does not constitute legal advice. Please note that HRTech247 and Safeguard Global expressly disclaim any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.