Coronavirus | Light Industry and installers can rely on economic measures
Light companies and installers in the Netherlands can rely on measures taken by the Dutch government to protect the economy against the coronavirus.
5 measures in the Netherlands
The 5 measures that are relevant to the lighting and installation companies in the Netherlands:
- Replacement reduced hours: government pays 90 percent of salary via NOW
Entrepreneurs that expect to lose at least 20 percent of sales can apply for a contribution towards the labor costs at the UWV for a period of 3 months. This can be up to 90 percent of payroll; depending on the loss of sales. The UWV will provide an advance of 80 percent of the requested compensation. This allows companies to continue to pay their staff. The condition is that no staff should be fired for economic reasons in the grant period. The Temporary Emergency Measures for Temporary Work Conservation (NOW) is available as soon as possible and the replacement of the current system of reduced hours. For the reduced hours working, no more new applications can be submitted to the Ministry of Social Affairs and Employment. Applications that have already been made, but not yet completed, will be handled by the new regime. Entrepreneurs can apply for compensation for a decline in revenue from March 1st.
- Additional support franchisees
The government proposes a temporary, flexible system to support entrepreneurs, including freelancers, so they can continue their business. The scheme is administered by municipalities. For a period of three months, self-employed can get additional income for livelihood via an accelerated procedure. This supplements the income to the guaranteed minimum income and not be repaid. Support under this temporary arrangement is also possible in the form of a loan for working capital at a reduced rate.
- Easing tax deferral and reduction penalties
Affected businesses can apply for simplified tax deferral. The Tax recoveries stops immediately. This counts for the income tax, corporation, payroll and sales taxes (VAT). Any default penalties for not paying on time, do not have to be paid. Nor is it necessary to send direct evidence, since the entrepreneur gets more time for this. The recovery rate commencing normally after the expiry of the payment will be temporarily reduced from 4 percent to nearly 0 percent. This applies to all taxes. The interest rate of the tax will be reduced temporarily to almost 0 percent. This reduction applies to all taxes.
- Widening scheme Entrepreneurial Financing Guarantee
Companies that have difficulties in obtaining bank loans and bank guarantees may benefit from the guarantee Entrepreneurs Financing Scheme (GO). The government proposes to increase the GO from 400 million to 1.5 billion. The GO helps EZK both SMEs and large enterprises through an 50-percent guarantee on bank loans and guarantees, ie at least 1.5 million and temporarily up to 150 million per company.
- Interest discount on small business microloans Qredits
Microcredits provider Qredits finances and coaches a large group of small and start-up businesses, that have difficulties getting fundings from the bank. For example, businesses in the hospitality, retail, personal care, construction, and business services. Qredits is proposing a temporary crisismeasure: postponement of loan repayment for the duration of the 6-month period for small business owners that will be affected by the coronacrisis, the interest rate for this period will be automatically reduced down to 2 per cent. The government supports Qredits for this measure, with a maximum of € 6 million. Source: LEDS Magazine