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PrimeGlobal member firm JOINSON&SPICE discuss the impact of the Coronavirus on the annual financial audits.
The economic impact of COVID-19 is becoming increasingly visible in all types of companies in the Netherlands. We see a sharp drop in turnover in parts of the tech sector, which has a direct effect on the financial health of our customers.
The government has taken measures to support large and small companies in these turbulent times. In this article we list all available measures for you.
SME Credit Guarantee (BMKB)
Are you and SME entrepreneur? Then you can get a guarantee for part of a loan with the BMKB scheme. The Ministry of Economic Affairs and Climate (in Dutch: EZK) guarantees this part. This generally means you can borrow more form the bank than you would get on the basis of your collateral. The terms and requirements are listed HERE>
You may apply for special deferral of payment for all income tax, corporation tax, turnover tax (VAT) and payroll tax assessments. This is possible if you experience temporary payment problems due to Covid-19 outbreak. If you expect a lower profit, the provional assessment (e.g. for Vpb) can also be lowered, so that you immediately pay less tax. In addition, the tax and recovery interest is reduced from 4% to 0.01%.
Employment Bridgement Emergency Fund
Do you have employees in the Netherlands and do you expect a loss of turnover of at least 20% in the coming 3 months? In that case, you can apply for a contribution towards wage costs via 'Noodfonds Overbrugging Werkgelegenheid' (NOW). This is a maximum of 90% of the wage bill, depending on the loss of turnover. The NOW is interesting because it doesn’t just impact liquidity, it results in an increased net profit as well.
Business Loan Guarantee Scheme (GO)
The business loan scheme (Garantie Ondernemingsfinanciering,GO) makes it easier for large and medium-sized companies in the Netherlands to borrow substantial amounts of money. Capital providers receive a 50% guarantee form the government. With the GO scheme, you can borrow at least €1.5 million and at the most €150 million.
Financial support for professionals (Bbz)
If you are a freelancer or self-employed professional in the Netherlands and in need of financial support, your municipality can offer you various forms of social benefit options that are part of the ‘Besluit Bijstandsverleninh Zelfstandigen (Bbz).’ The Bbz offers loans, credits or low income supplements. Also your municipality can offer you coaching free of charge.
Qredits and bank repayment
Entrepreneurs who have loan from microcredit provider Qredits do not have to repay their loan for a period of 6 months. During this period, the interest will be reduced to 2%. The government supports Qredits with 6 million euros. The Dutch Banking Association announces relaxed measures for the repayment of loans up to €2.5 million.
JOINSON&SPICE is a young accountancy firm, specialising in Technology, Media and Telecom. Our team varies from young post-graduates to experienced chartered accountants (in Dutch: RA) and accounting consultants (AA). The thing that brings us together: a passion for technology companies. With years of knowledge and experience stemming from a genuine interest in our specialities, we enjoy connecting with our customers and aiding in the growth of their companies. We believe in an equal partnership where sharing knowledge is paramount. Within the sub-sector of Technology we help data centres, hosting providers, software providers, system integrators, cloud providers and online retailers with important decisions.Learn more