PHILIPSBURG – Companies that need help due to the effect of the corona-virus crisis can get several forms of assistance if the Netherlands honors the requests set forth in the ministry of finance’s Stimulus Plan. But that help comes with some red tape on different levels.
The stimulus initiative proposes a 33 million guilders fund for soft loans. These loans are designated for companies with fewer than 550 employees and “a viable business plan.” What this exactly means remains unspecified and is therefore open for interpretation. In any event, here is what we understand about how to get payroll assistance and soft loans from this 33 million guilders fund.
The company’s primary financial institution will have to assess viability. If that assessment is positive, it will notify an oversight committee that will then transfer the loan into the company’s bank account and from thereon the company will have the money at its disposal.
The soft loans come at a 2.5 percent interest rate with a grace period of 6 months. When it ends, companies have to repay at least 3 percent of the principal per month or a period of two years. Over the outstanding after those two years the interest will increase to 5 percent and companies are expected to repay the rest in three years.
For companies the maximum soft loan is 1.5 times the average monthly payroll over the period January-March that does not exceed 500,000 guilders. For sole proprietors the maximum is 1.5 time their average income over the period January-March that does not exceed 15,000 guilders. Individuals who grossed more than 15,000 guilders are excluded from the soft loan program.
To obtain payroll support companies have to submit an employee mutation form to SZV and they will have to submit their ZV and OV declarations (health care and accident insurance) before the fifteenth of each month. Next they have to submit their tax and payment declarations over the months February and March 2019 and 2020 to show that their revenue over this period had dropped by at least 20 percent. Payroll support, if granted, will not be affected by payment arrears. The company must submit a declaration that the provided information is accurate.
SZV processes the information and pays the payroll-subsidy via a bank.
For sole proprietors, licensed vendors and independent bus and taxi drivers the requirements are slightly different. They have to submit a copy of their 2018 tax return and a copy of their valid permit. There are no deductions for payment arrears and the requesters have to declare that the information they provide is correct. The tax department handles all requests and the treasury department takes care of payments.
For other cab drivers the process goes through their associations who have to submit driver’s mutation forms to SZV. Subsequently, SZV determines the payroll support. The tax administration handles the requests and the treasury department makes payments to the taxi associations. In turn, these associations pay the cab drivers.
Unemployed citizens have to submit an emergency support registration form to the department of labor affairs with supporting documentation. Requested information includes name and address, date of birth, nationality, passport number, phone number, email address, gender, marital status, dependents and banking information. The department also wants information about educational background, the names of the last three employers and the last salary.
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