In turnover of at least 20% over a continuous period of three months. This support comes in the form of a compensation for part of the labour costs. If you are a director/large shareholder but do not have to pay for employees' insurance, you are, unfortunately, not eligible for the application of the Temporary Emergency Bridging Measure for Sustained Employment (NOW). On this page, we will explain the alternatives.
If you are a director/large shareholder but do not have to pay for employees' insurance, you are, unfortunately, not eligible for the application of the Temporary Emergency Bridging Measure for Sustained Employment (NOW). This means that, if you are losing turnover and liquidity as a result of the corona crisis, you will have to find another solution than the NOW for the financial consequences. For that reason, the Dutch Tax Authority allows you as a director/large shareholder to reduce the usual wages temporarily.
Based on the usual pay scheme, you are simply obliged to pay a certain minimum wage to the employees of your company. This wage cannot be below the wage usually earned by an employee with a similar position employed without substantial interest. You will not have to discuss this temporary reduction of wages with the Tax Authority. By the end of the calendar year or upon termination of employment, you determine what the usual wage for the year 2020 is. After all, you will have a better understanding of the consequences of the corona crisis for your company afterwards. If it turns out that the company did not pay enough wages, the company will have to declare the difference as wage and calculate the corresponding wage tax.
Wages that you, as a director/large shareholder, already received in 2020, cannot be made undone. Your company and you can only reduce the wages over future months of 2020.
Temporary Emergency Bridging Measure for Self-Employed Persons (Tozo)
If you are forced to lower the usual wages so drastically that you cross the social minimum line, you are eligible for the Temporary Emergency Bridging Measure for Self-Employed Persons (Tozo). The legal requirements you have to meet are the following:
- the working hour criterion;
- you must have full authority;
- you must be the one who bears the financial risk.
You are also required to explain and make a reasonable case for the fact that your company is currently unable to pay wages. In that case, you can apply for a benefit and/or a business capital loan. Read more about the Tozo here (in Dutch) >
We will gladly help you
If you want to make the most of this arrangement to have the best possible results at the end of the year, please feel free to contact us using the contact details below. We will then inform you about things such as the conditions and the interaction with the current account and any dividend distributions.