Fiscaal juristen en finance

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We have previously informed you about the scheme for compensation of wage costs (NOW) and the possibility of applying for deferral of payment for some types of tax. These measures have recently been extended. We will discuss these extensions in more detail below.

Scheme for compensation for wage costs (NOW)
On 20 May 2020, the Cabinet announced that it wishes to extend the NOW-scheme. The content of this new scheme (NOW-2) was recently published. The NOW-2 has largely remained the same as the NOW-1. For the conditions we refer you to our previous announcements on this subject. The NOW-2 differs from its predecessor on the following points:

  • the subsidy period is one month longer (four months) and runs from 1 June to 30 September 2020;
  • the starting point of the NOW-2 is to prevent job losses as much as possible. If dismissal does occur in the period from 1 June to 30 September 2020, this may have consequences for the NOW-2:
  1. in the event of an application for dismissal from the UWV for business economic reasons, the amount of the NOW subsidy will be reduced. As a result of the dismissal, the basis of the subsidy, i.e. the wage bill, will also be reduced. The employer still has five days after the application for dismissal to withdraw it;
  2. if the employer applies for collective redundancy for 20 or more employees within the framework of the Collective Redundancy (Notification) Act (WMCO), the total subsidy amount will be reduced by 5%.
  • the NOW-2 concerns the payroll for March 2020;
  • the surcharge for employers’ costs will be increased from 30% to 40%;
  • just like the NOW-1, there must be a loss of turnover of at least 20%. In principle, the loss of turnover must be determined at group level. The compensation is calculated on the basis of the loss of turnover over a period of four months, starting on 1 June, 1 July or 1 August. If the employer has also been granted NOW-1, the turnover period must correspond to the NOW-1’s chosen turnover period. The turnover for the selected period will be compared to the total turnover for the year 2019 divided by three. Separate provisions apply to employers who have divested a business unit or activity, to employers who were not yet established on 1 January 2019 and to groups of companies. For groups of companies, NOW-2 can also be applied for individual operating companies if certain conditions are met;
  • the concept of net turnover also includes subsidies received. The subsidy under NOW-1 does not count as net turnover for NOW-2;
  • the subsidy can be applied for from 6 July 2020 to 31 August 2020 inclusive. After a positive decision has been taken on the application, the UWV will make an advance payment of 80% in two instalments;
  • the employer may not make any dividend or profit distributions to the shareholders or third parties for the financial year 2020. There is also a ban on bonuses or profit distributions to the board and management for the financial year 2020. Finally, for the financial year 2020, it is prohibited to repurchase own shares. The ban on bonuses does not extend to other employees who may be paid variable bonuses. In principle, the prohibition applies up to and including the date of the annual meeting at which the financial statements are adopted in 2021.
  • the prohibition on dividend, bonuses and repurchase of own shares only applies if the advance received is € 100,000 or more or if the final amount of subsidy is € 125,000 or more. A breach of this prohibition results in the NOW subsidy being set at nil.

Deferral of taxpayment 
From 16 March 2020, it will be possible for entrepreneurs to apply for special tax deferrals. This special deferral is valid for a period of three months. For some applications, the end date of the special deferment will soon approach. The Tax and Customs Administration announced on 25 June 2020 that an extension of the special deferment can be requested. This request can be made digitally (Digid) or in writing. The Tax and Customs Administration wishes to receive additional information if the amount for which an extension is requested exceeds € 20,000.

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