Relief package 4th quarter 2021

In order to reduce the number of corona infections and prevent further pressure on the healthcare sector, the government announced on November 12, 2021 that it was tightening the corona measures. As a result of this tightening, businesses may be confronted with a loss of turnover. Therefore on November 16, 2021, in letter to the Lower House of Parliament, the government announced and explained several changes to the relief package for the fourth quarter of 2021; this in anticipation of approval by the European Commission.

The various relief measures are briefly explained below.

Overhead Compensation scheme 4th quarter 2021

The government has decided to give new impetus to the Overhead Compensation scheme (Tegemoetkoming Vaste Lasten; TVL) and to also make this relief measure available, in revised form, for the fourth quarter of 2021 (TVL Q4 2021). Based on the information appearing on the website of the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland; RVO) – the organization implementing the TVL – businesses will be eligible for the TVL Q4 2021 if they roughly meet the following conditions:

• The business or group of associated enterprises expect at least a 30% loss of turnover in the fourth quarter of 2021 compared to the fourth quarter of 2019 or the first quarter of 2020. The business may elect which reference period is the best for it: the fourth quarter of 2019 or the first quarter of 2020. Different reference periods apply to businesses that began operating after October 1, 2019.
• The business, or if there is a group then a member thereof, must have been registered with the Chamber of Commerce on June 30, 2020 and has at least one branch in the Netherlands. Barring exceptions, this branch must have a separate front door or entrance separate from the place of business address.
• Between March 2020 and December 31, 2021 the business or group of associated enterprises did not receive more than EUR 1.8 million in government aid for overhead expenses (please note that different, lower maximum amounts apply to the fisheries and aquaculture sector and to the primary production of agricultural products).

If the business or group of associated enterprises is eligible for the TVL, the compensation will be calculated on the basis of the loss of turnover, the overhead percentage for the sector and a fixed subsidy percentage of 85%. The minimum subsidy amount will be EUR 1,500. The maximum subsidy amount will be EUR 250,000. It is expected that applications for the TVL Q4 2021 will be able to be submitted as of the beginning of December 2021.

More information about the TVL Q4 2021 can be found here. More information about the term ‘group of associated enterprises’ can be found here.

Agricultural and horticultural businesses

For agricultural and horticultural businesses, the Uncovered overhead expenses in agriculture and horticulture (Ongedekte vaste kosten land- en tuinbouw; OVK) scheme is available as a supplement to the TVL, so that these businesses can rely on the same amount of relief as other businesses.

Relief for events, culture and sports

From November 13, 2021 until December 4, 2021 no events may take place without fixed seating arrangements (the event ban). However, events that may take place must finish at 6:00 p.m. In addition, a maximum capacity of 1,250 visitors per seated area applies. The government is therefore introducing the following financial relief.

Temporary COVID-19 Subsidy Scheme for Events

Because the events ban applied almost immediately, the subsidy percentage of the Temporary COVID-19 Subsidy Scheme for Events (Tijdelijke regeling subsidie evenementen COVID-19 ; TRSEC) has been increased to 100% through to December 31, 2021.

Additional Compensation for Events scheme

Events that fall outside the scope of the TRSEC and which have been canceled due to the events ban will, subject to conditions, be eligible for the Additional Compensation for Events scheme (Aanvullende Tegemoetkoming Evenementen; ATE). The compensation percentage for this scheme will also be increased to 100%. The Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland; RVO) will work out the ATE scheme. The scheme is expected to be made available at the beginning of 2022 for the period July 10, 2021 through December 31, 2021.

Relief for the cultural sector

For cultural organizations confronted with the new corona measures, the government is expanding the supplementary scheme (suppletieregeling) for the Performing Arts Fund to include compensation for a maximum of 55% of the tickets of the overall normal capacity. The scheme is also available for performances with seating arrangements. The expansion of the supplementary scheme applies, in principle, to the period November 13, 2021 through December 4, 2021.

Additional relief for the sports sector

For professional sports events, the government is making a maximum of EUR 36 million available to compensate for missed income from ticket sales and to compensate the holders of season tickets for the period November 13, 2021 through December 4, 2021. For amateur sports organizations, a maximum of EUR 5 million is available to compensate them for any damages suffered during this period. The Minister of Health, Welfare and Sport will work out these schemes in collaboration with the sports sector.

Temporary emergency bridging measure to retain jobs (NOW)

The government has, for several reasons, opted to not give any new impetus to the Temporary emergency bridging measure to retain jobs (Tijdelijke noodmaatregel overbrugging voor behoud van werkgelegenheid; NOW) for the time being. However, in the next three weeks the government will make the necessary preparations for a possible restart of the NOW. This in connection with a potential scenario where the corona measures are extended beyond December 4, 2021.

Should you have any questions about the above, Meijburg’s advisors would be pleased to use their expertise to help you minimize the tax and financial consequences of the corona crisis. We will, of course, keep you informed of tax developments.

Lex van Heijningen and Paul te Boekhorst