The Lower House of the Dutch Parliament is keen to introduce further support measures for businesses affected by the coronavirus crisis. In a number of motions passed during the coronavirus debates on Thursday, 16 April the government is being asked to take numerous measures or expand existing schemes.
Temporary Bridging Scheme for Independent Entrepreneurs (Tozo)
The Lower House also wants to adapt the Tozo scheme. Under this scheme entrepreneurs experiencing financial difficulties can receive a payment supplementing their income up to the level of the minimum social income and/or working capital loans. The request has been made that activities dating from before March this year that were invoiced in March this year be left out of consideration, as they distort the picture of the loss of income suffered.
Special attention is also being requested for flexiworkers. In some cases, for various reasons, they find themselves in a position where they have lost their job and also do not qualify for the Tozo scheme.
Contribution for Entrepreneurs in Sectors Affected by COVID-19 scheme (TOGS)
The Lower House is also keen to expand the TOGS scheme. Under this scheme affected companies can qualify for an untaxed contribution of € 4,000. Whether a company is eligible depends, amongst other things, on the SBI code of its principal activity. The Lower House is asking the government to look into whether the SBI code of a secondary activity could also be taken as a basis in certain cases. In such cases the secondary activities would have to be linked to the company’s principal activity.
Offsetting of losses expanded
Subject to certain restrictions, companies are permitted to offset losses against profits generated in previous and future years. In recent years the offsetting of losses has been restricted in the area of corporation tax in particular. A loss can now only be carried back by one year, for example. In the light of the anticipated negative impact that the coronavirus crisis is expected to have on profits for this year, the Lower House is requesting that the options for offsetting losses be expanded. In addition, it is asking for companies to be allowed to offset losses from this year with their 2019 profit on the basis of an estimate.
Please note:
It is now up to the government to examine the content of the motions and translate them into regulations where possible. The government is not obliged to implement a motion that has been passed, although it generally does so. It is therefore not yet known when the amended regulations will enter into force.