Additional support for companies in the fourth quarter of 2021

Christiaan Buizer
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Following the announcement of the ‘evening lockdown’ on Friday 26 November 2021, the caretaker cabinet is providing additional support measures for entrepreneurs in the fourth quarter of 2021. The additional support includes, among other things, a return of the NOW for November and December 2021, and an increase in the fixed cost subsidy (TVL) in the fourth quarter of this year.

This article provides an overview of the main measures of the additional support package for the fourth quarter of 2021. The complete Parliamentary Letter of 26 November 2021 can be found here.


In its Letter to Parliament dated 16 November, the caretaker government decided that, at that time, it saw no reason to introduce NOW 5. In the meantime, social distancing measures have been extended and affect a larger group of entrepreneurs. Therefore, it has been decided to introduce NOW 5 after all.

NOW 5 will apply for the period from 1 November 2021 to 31 December 2021. The conditions for NOW 5 are broadly in line with those for NOW 4. The turnover threshold remains at 20%, the subsidy percentage at 85%, the fixed supplement at 40%, and the daily wage to be reimbursed remains capped at twice the maximum daily wage. The reference month for the wage costs in NOW 5 becomes September 2021, and the reference turnover period becomes 2019, divided by 6, with the exception of start-ups.

Unlike in previous NOW schemes, under NOW 5, entrepreneurs can no longer choose over which months they wish to have the loss of turnover calculated. For every entrepreneur, the loss of turnover will be calculated over the months of November and December 2021.

Two further changes are also being made to NOW 4. First, the percentage of the wage costs exemption will increase to 15%. This means that the wage costs in November and December 2021 can decrease by 15% compared to September 2021, without affecting the amount of NOW 5 to be received. Second, more start-up entrepreneurs can make use of NOW 5. Entrepreneurs who started between 1 February and 2020 and 30 September 2021 can also apply for NOW 5. Previously, this was not possible. A different reference turnover period applies to this group of entrepreneurs.

Reduction of Working Hours Scheme (WTV)

NOW replaced the Reduction of Working Hours Scheme (WTV) at the start of the corona crisis. The NOW 4 application window closed on 30 September 2021, and from then on, the WTV reopened. Upon reopening the WTV, it was stated that it would not apply to corona-related applications. This means that the WTV and NOW 5 both remain open at this time. Entrepreneurs who are affected by corona measures can apply for NOW 5. Entrepreneurs facing other special circumstances can appeal to NOW 5 and WTV. To ensure that this group of entrepreneurs does not receive a double subsidy, WTV is considered revenue for NOW 5 calculations.

Opening of the application window

The application window for NOW 5 is expected to open at December 13, 2021. The Netherlands Employees Insurance Agency (UWV) will pay the NOW 5 advance in one instalment, unlike in previous NOW schemes where there were several instalments.

Am I still entitled to NOW?

Have all the exceptions and adjustments made it unclear which conditions you must meet? Our handy overview of the conditions and differences in the various NOW schemes, helps you to determine which possibilities are available and what the conditions are for your application.

TVL Q4 2021

The caretaker cabinet announced an extension of the TVL Q4 2021 on 16 November 2021. This article provides more information about this.

Because the social distancing measures have been extended, the TVL Q4 2021 has also been expanded further. First of all, the state aid limit will be increased from €1.8 million, to €2.3 million. Furthermore, the maximum subsidy amounts are increased to €550,000 for SMEs and €600,000 for non-SMEs. In addition, the caretaker cabinet will increase the subsidy percentage from 85% to 100%.

Opening of the application window

The exact dates for opening of the TVL Q4 2021 application window are not yet known. The amended subsidy scheme for the TVL Q4 2021 was sent to the European Commission (EC) on 26 November. As soon as the EC approves, the application window will be opened. You can sign up here for an update about the opening.

Am I entitled to TVL?

Are you not sure whether you are entitled to TVL, or do you no longer know which conditions you need to meet following all the exceptions and changes? The table below shows the conditions and differences of the TVL scheme and helps to determine the possibilities open to you and the conditions that may apply to your potential application.

Postponement of payment

The caretaker cabinet is extending the deferral of payment for taxes for the fourth quarter of 2021 for those entrepreneurs who still have outstanding tax debts and who previously applied for the special deferral of payment. This deferral will be granted automatically. This extended deferral of payment applies to taxes for which the ultimate payment date is before 1 February 2021, for example the quarterly VAT returns for the last quarter of 2021.

This tax debt will be added to the tax debt that must be repaid within 60 months as from 1 October 2022. Entrepreneurs who had not previously applied for deferred payment due to the corona crisis, or those who have fully paid off the deferred tax debt, are not automatically included in the deferred payment. These entrepreneurs will soon be able to file a request with the tax authorities for deferred payment of their taxes for the fourth quarter.

Recovery interest

At the beginning of the corona crisis, the recovery interest rate was reduced to 0.01%. Earlier this year, the caretaker cabinet decided to gradually return the recovery interest rate to 4%. This meant that the recovery interest rate was due to increase to 1% on 1 January 2022. However, the caretaker cabinet has decided not to increase the recovery interest rate as from 1 January 2022, but to keep it at 0.01%. This percentage will apply until 30 June 2022. Thereafter, the recovery interest rate will gradually return to its old level in six-month steps.

More information?

Last Tuesday the Dutch government already a new set of measures for the first quarter of 2022. We will inform you as soon as more details are published. For now, if you have any questions about the government’s corona measures for entrepreneurs, please contact our corona team.

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