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    Getting businesses back on their own two feet

    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 various measures, including the NOW scheme, the TVL scheme and the possibility to request a deferment of due tax payments. Centraal Planbureau, the National Bureau for Economic Policy Analysis, has predicted a substantial growth in the economy. The cabinet believes that continuing the package of financial support measures will only hamper economic recovery. Nonetheless, the measures have been effective: unemployment has remained low and relatively few organization have gone bankrupt.

    Fewer working hours

    Hundreds of thousands of organizations applied for the NOW scheme. The subsidy scheme – which allowed organizations to obtain subsidy to cover labor costs if their revenue had decline dramatically – will be replaced by the WTV regulation, a regulation permitting organizations to implement reductions in the working hours of staff. This regulation was in effect before the coronavirus pandemic, but was discontinued when the NOW scheme went into effect. As of October 1, 2021, when the NOW scheme is discontinued and replaced by the WTV regulation, the latter will not be available to organizations for coronavirus-related situations.
    One coronavirus measure which will remain in effect until the end of the year is the regulation permitting employers to continue paying their employees an untaxed fixed travel allowance. Thanks to this regulation, changes in an employee’s commuting and travel habits due to the coronavirus pandemic do not affect his/her entitlement to a travel allowance. Instead, the allowance is still to be based on the ‘old’ commuting habits from before the circumstances forced the employee to work from home (more often).

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