Coronavirus: RSM advises on financial & economic changes

The Dutch Ministry of social affairs and employment has offered the second package of the  temporary arrangement compensation labor costs (“NOW 2.0”) to Dutch parliament. In this alert an overview of the most important items in this second package are provided together with a high level overview of some of the differences between the NOW 2.0. and the NOW 1.0.

As of 17 March 2020 entrepreneurs could request for special postponement of tax payments. The extension is generally for a period of three months. After this period, the tax authorities will start collecting tax debts due. The term of extension will or has in some cases already expired. Time to act.

On May 20, 2020 the Dutch government sent a letter to Dutch parliament with details on a second COVID-19 support package. The measures from this letter are aimed to provide continuous support to companies and employees that are economically impacted from the restrictive measures meant to limit the spread of the virus. Most of these measures known from the first support package are now extended with some amendments but some new measures have also been announced. In addition, the Dutch Minister of Social affairs and employment informed Dutch parliament on May 20, 2020 on some changes that will be made to the temporary arrangement compensation labor costs rules (“NOW”).

Recently the government has announced a new measure that allows for the possibility to carry back an expected tax loss for 2020 by creating a ‘corona reserve’ in 2019. This is an interesting new measure although it is subject to certain restrictions. 

A little more than two months ago COVID-19 hit the world stronger than we ever expected. The world has changed forever. In this newsletter we provide an overview of the latest developments in the financial sector around dealing with COVID-19 and its effects, as well as the responses of (inter-)national supervisors in the financial sector.

By letter of April 24, 2020, the Dutch Secretary of State for Finance announced six new tax measures related to the COVID-19 crisis. The details of the measures will be further elaborated by the government. The measures are intended to take effect as soon as possible. Below we provide an overview of these measures.

The 270,000 Dutch family businesses, like many other companies, have been struck hard by the coronacrisis. The family businesses expect an average turnover loss in April 2020 of 40% compared to April 2019. Already 22% of last year’s profitable family businesses do not expect to make a profit. They expect to make a loss for the whole of 2020. This is evident from the results of the RSM-Nyenrode Family Businesses research panel from early April 2020. This also shows that family businesses do everything they can to keep their employees employed and that they are optimistic about the future.

Public policy measures put in place to contain the spread of Covid-19 are resulting in significant operational and financial disruption for companies. Staff quarantine, supply chain failures and sudden declining demand from customers are causing multiple issues for companies in all sectors.

The COVID-19 virus (corona) leads globally to substantial concerns and has huge impact on the daily business. In many nations a (semi or total) lockdown situation has been implemented or is expected in due course. The current situation impacts financial institutions and their clients substantially.

It was announced recently that the ‘temporary arrangement compensation labor costs’ (“NOW”) will replace the ‘part time unemployment benefits measure’ which was terminated. The NOW legislation and additional guidance has been published on March 31, 2020.

The COVID-19 virus (corona) leads globally to substantial concerns and has huge impact on the daily business. In many nations a (semi or total) lockdown situation has been implemented or is expected in due course. The current situation impacts financial institutions and their clients substantially.

As we are all aware, The COVID-19 (Corona) virus has far reaching consequences for daily life world wide. Several EU Member States have prohibited events or public gatherings.

In this time of the coronavirus, it is important to pay extra attention to your company’s liquidity position. What can you do to maintain a healthy liquidity position and what options do you have if this position is compromised? We would like to inform you about these matters and can provide you with relevant advice and support, of course.

On Tuesday evening 17 March 2020, the Dutch government announced new and adjusted measures in order to support Dutch businesses, employees and self-employed persons. The measures are an addition to the measures already announced on 12 March 2020. The measures among others support self-employed persons and support businesses in continuing paying their employees.

The Dutch and international business community will be significantly affected by the coronavirus. The financial and economic consequences may also be considerable. As a result, in its letter of 12 March 2020, the Dutch government announced a number of measures that will hopefully give businesses some room to deal with the developments.