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    Coronavirus financial support discontinued as of October 1

    The cabinet of the Dutch government has announced that the enormous package of financial supports measures implemented in response to the coronavirus pandemic is soon to be discontinued. October 1, 2021 will mark the end of several of these measures, including the NOW scheme, the TVL scheme, and the possibility to request a deferment of due tax payments. The cabinet believes that continuing these measures will only hamper economic recovery.

    Paying back

    On October 1, the following measures will be discontinued:

    • the NOW scheme; which will be replaced by the WTV regulation, a regulation permitting organizations to implement reductions in the working hours of staff;
    • the TVL scheme; although applications for subsidy through this scheme for the purpose of covering standing charges in the third quarter of 2021 are possible until October 26, 2021;
    • the possibility to request a deferment of due tax payments; organizations will have until October 1, 2022 before they have to start paying off any outstanding tax debt and they will have five years to do so. Currently, there is a total tax debt of € 19.2 billion to be paid off by organizations.

    Business risks

    The cabinet has informed the lower house of parliament that organizations can fall back on the WTV regulation in the event they suffer from short-term detrimental circumstances not part of regular business risks – as was the case before the coronavirus pandemic. The WTV regulation is, however, not meant to provide support to organizations for problems related to the coronavirus pandemic and/or its aftermath. In other words, businesses have to get back on their own two feet again. Not all coronavirus financial support measures will be discontinued as of October 1, 2021. The regulation allowing organizations to continue paying their employees a untaxed fixed travel allowance will remain in effect until the end of 2021.

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