UPDATE relating to the Letter to Parliament of 21 December 2021

At a press conference on 14 December 2021, the government announced that the economic support measures in connection with the corona crisis will once again be extended. A Letter to Parliament, also dated 14 December 2021, contains the details of these support measures. A tax decree was also published on 24 December 2021. In this newsletter we inform you about a number of these support measures that will apply in the first quarter of 2022.

Temporary Emergency Bridging Measure (NOW-6)

Applications for the allowance for wage costs can also be submitted in the first quarter (subsidy period: January to March 2022). The scheme will be largely similar to NOW-5. For example, the turnover threshold will be maintained at 20%, the reimbursement percentage remains unchanged at 85% and the daily wage to be reimbursed remains capped at twice the maximum daily wage. Furthermore, the limit on the maximum loss in turnover to be reimbursed is 90% in NOW-6.

Possible adjustments

On 1 January 2022 the policy administration of the UWV will change. This change will affect the definition of the wage bill used to determine the amount of the subsidy. The effect of this change and the measures to be implemented to keep the subsidy at the same level is currently being studied.

In addition, the percentage to be used for the wage bill exemption is being reviewed. Under NOW-5 this was set at 15% (NOW-4 10%). The wage bill exemption allows the employer to reduce the wage bill without affecting the subsidy amount.

The option of introducing a so-called (annual) loss in turnover threshold is also being looked into. This is to prevent support from being given to those companies that do well throughout the year, but show (temporarily) disappointing results in one quarter.

Implementation

The aim is to open the application office for this new tranche in the second half of February 2022. Payment of the first advances will start thereafter.

Reimbursement of Fixed Costs (TVL)

The TVL is continued unchanged in Q1 2022. The minimum loss in turnover in Q1 2022 must be 30%. The maximum subsidy amounts remain unchanged at € 550,000 for SMEs and € 600,000 for non-SMEs. The state aid limit of € 2.3 million will be maintained.

With respect to the TVL for the fourth quarter of 2021, the minimum loss in turn over must be 20% (one applicable to this quarter). This change is under the approval of the European Commission.  Although application for the TVL grant is already open for submission, the RVO can only grant the application after the European Commission has given its approval.

Fiscal measures

Deferral of payment

On 26 November 2021, the government announced that the tax deferral due to the corona crisis will be extended until 31 January 2022. Companies that were previously granted a special deferral of payment and whose tax debt has not yet been paid in full, will automatically be granted the deferral until 1 January 2022.. This also applies if a request for postponement has been made under the so-called temporary additional allowance (valid from October 1, 2021 to December 16, 2021).

On December 24, 2021, the tax measures decision was amended in accordance with the announcement of November 26, 2021 and the automatic extension has been included as such. In addition, an arrangement has been made for 1. entrepreneurs who received an extensio before 1 October 2021 whose tax debt has been paid in full and 2. entrepreneurs who apply for a special eztension for the first time.

For these two groups, a written request can be filed up to and including 31 January 2022. A request for special postponement of payment can be submitted after receipt of an additional assessment. The request must state the circumstances and consequences of which your company has been affected by the corona crisis. Only one request needs to be submitted for the following assessments: income tax, Health Insurance Act, corporation tax, payroll taxes and VAT. For other taxes, a separate request must be submitted for each assessment. Please note that monthly/quarterly returns must be submitted on time. From 1 February 2022, assessments must be paid again.

Further, it is explicitly stated that the request will not be granted if the payment problems are not mainly caused by the corona crisis.

 Notification of inability to pay

The request for special postponement will also apply as a timely notification of inability to pay. The notification is also considered legally valid, unless it turns out afterwards that the inability to pay is not mainly related to the consequences of the corona crisis.

Payment arrangement

If special extension has been granted, the accrued tax debt will have to be repaid in 60 equal monthly instalments from 1 October 2022. If it proves impossible to start the repayments on October 1, 2022, a different repayment schedule can be agreed, whereby the total debt is repaid before October 1, 2027.

A condition for the payment arrangement is that the entrepreneur fulfils his newly emerging tax obligations (declaration obligation and the ensuing payment obligations) for the duration of the payment arrangement.

Cross-border workers

The agreements with Germany and Belgium on the taxation of cross-border workers will be extended until March 2022.

Recovery of tax debts

Collection of tax debts for which no (special) deferral has been granted was resumed in September 2021. The government has decided it will postpone collection for the time being. Companies and individuals who have not yet paid their tax debt will receive a letter in January 2022 setting out, among other things, how they can still apply for a deferral of payment. Writs of execution will not be served until at least the beginning of February 2022. In addition, a broadening of the deferral policy is being prepared, making it possible to temporarily apply for a payment scheme for the motor vehicle tax assessments, as from the beginning of next year.

Other measures

The other tax measures will expire on 31 December 2021. These include the temporary extension of the mortgage payment deferral scheme.

Repayment of TOZO business capital loan

Economic operators who have received a TOZO business capital loan from the municipality must repay this by 1 July 2022 instead of 1 January 2022. The loan must be repaid in full within 6 years of it having been granted. Municipalities do not have to make a generic decision about the postponement for existing Tozo loans, but can suffice by informing the entrepreneur about the upcoming changes. If municipalities have already sent decisions to individual applicants about the repayment of the Tozo loan as of 1 January 2022, further communication by the municipalities will have to be initiated here

More information?

Would you like more information about one of the schemes discussed in this newsletter? Please contact your trusted RSM advisor or send an email to: [email protected].