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12 mei 2020

The NOW scheme

Update concerning the Temporary Emergency Bridging Measure to Preserve Employment

Both the business community, the trade unions and the Lower House of the Dutch Parliament called for an investigation into the options to expand the scope of the NOW scheme with regard to groups and operating companies in order to better achieve the objective of preserving employment. As a result, Minister Koolmees indicated in a letter dated 1 May of this year that he intended to make a number of changes to the NOW scheme. The modified NOW scheme was published in the Netherlands Government Gazette on 4 May and entered into force on 5 May. The changes are set out below.

The modified NOW scheme

If a company is part of a group, the expected decline in turnover of the entire group must be taken as the basis for all NOW applications by any group entity. Within a group of companies, however, there may be legal entities that expect a 20% or more decline in turnover and legal entities that expect a smaller decline in turnover or even no loss of turnover at all. If a group has a loss of turnover of 20% or more, all legal entities within this group can submit a NOW application, regardless of the actual loss of turnover of the legal entity in question. In practice, because the scheme is based on a decline in turnover of the entire group, some operating companies may sustain a substantial loss of turnover although the group as a whole expects a loss of turnover of less than 20%. These operating companies have been unable to apply for the NOW scheme until now because they did not fulfil the requirements. This has resulted in employment in these operating companies coming under pressure.

Other issues we discuss:

  • New conditions
  • Additional control guarantees
  • Conclusive determination of the application for a grant
  • Other changes
  • Additional tax measures in connection with the coronavirus

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