The End of the Generic COVID-19 Support Measures

As of October 1, the Dutch government has stopped most of the generic financial support measures that have helped the Dutch economy as much as possible through the COVID-19 pandemic over the past eighteen months. In this alert we provide a brief overview of the relevant measures for businesses that have ended or will shortly end.

Compensation Measures

Temporary Emergency Bridging Measure for Sustained Employment (‘NOW’)

Because the corona crisis and contact restriction measures were longstanding, multiple programs of the NOW were opened after the first subsidy program. As it is a real scenario that no restrictions and contact restriction measures will be in place in the fourth quarter, the government has confirmed that as per October 1, 2021, the NOW will not be renewed.

Reimbursement Fixed Costs (‘TVL’)

In March 2020 the Reimbursement for entrepreneurs in affected sectors (‘TOGS’) was introduced to help small and medium-sized businesses during the pandemic. The TVL is the successor of the TOGS. Businesses that have suffered turnover loss of at least 30% during 3-month periods and cannot pay their fixed costs due to the pandemic, are eligible for the TVL. The application deadline for TVL Q3 is October 26, 2021, 17:00 hours. Businesses that are eligible for TVL Q3 can also apply for reimbursement of turnover loss caused by the Limburg floods. The Dutch government has decided, however, that the TVL will not be extended until the fourth quarter of 2021. The support measure has therefore ended as per October 1, 2021.

Credit extensions and loans

In order to continue to support companies in their liquidity needs, several guarantee measures were implemented in the past year. The special COVID-19 Corporate Financing Guarantee (‘GO-C’) and COVID-19 Credit Guarantee scheme for small and medium-sized enterprises (‘BMKB-C’) are still in effect. The application deadline of the GO-C and BMKB-C is extended until December 31, 2021, 17:00 hours. The other guarantee measure, the Corona Bridging Loan (‘COL’), already ended on May 16, 2021.

Practical Corporate Measures

Temporary Act COVID-19 Justice and Security (‘Temporary Act’)

Under the Temporary Act, it is possible to deviate from any provisions in the articles of association that require holding physical shareholder and board meetings. The Temporary Act makes it possible to keep the shareholder meeting completely virtual under certain conditions. There is no obligation for the companies to offer remote voting online. It is sufficient that shareholders can follow the meeting via a live stream and submit questions in advance. The Temporary Act is again extended and now applies until December 1, 2021.

Tax Measures

Tax payment deferral (Bijzonder uitstel van betaling vanwege coronacrisis)

The possibility to apply for a tax deferral has ended as per October 1, 2021. Under the emergency payment deferral regime, taxpayers could request a deferral for payment for, for example, the corporate income tax (‘CIT’) and value-added tax. The term for paying off the tax debt has been set to 60 months. The starting date of the payment schedule that was set to commence on October 1, 2021, has been further pushed back and extended to October 1, 2022. New tax liabilities that arise on or after October 1, 2021 have to be settled in the regular (pre-COVID-19) manner.

Reduction of interest on tax (belastingrente) and interest on late payment of taxes (invorderingsrente)

Interest on tax becomes payable if a company files tax returns late or incorrectly. The Dutch tax authorities have temporarily reduced the rate to 0.01% for all taxes subject to interest on tax. As of October 1, 2020, the rate was increased to 4% for all taxes. The normal (pre-COVID-19) rate of 8% will be back in force as per December 31, 2021. In August 2020, the late payment interest (invorderingsrente) was reduced to 0.01% until 31 December 2021, after which it is set to return to normal (pre-COVID-19) 4%. The return to 4% will now, however, be phased in as follows: the rate will be 1% from January 1, 2022; 2% from July 1, 2022; 3% from January 1, 2023, and 4% from January 1, 2024 onwards.

The termination of the aforementioned measures will have financial consequences for many companies. The government is currently working on separate support measures for sectors that will still face COVID-19 restrictions. It is uncertain how and when these support measures will take effect and unfold. If you have any questions with regard to (the ending of) the COVID-19 support measures, please do not hesitate to contact us.

Can Bahtir and Eva Klein Obbink

Can BahtirEva Klein Obbink


Digital formation of a Dutch private company with limited liability (the so-called Dutch BVs)

August 20, 2021

In the Netherlands, for the establishment of a Dutch BV it is required to go to a civil-law notary and sign a notarial deed of incorporation. This is about to change. Soon it will be possible to form a Dutch BV online. For the digitalization of the notarial profession and the modernization of Dutch company law in general, the possibility to set up a Dutch BV online is an important step.


Under the directive 2019/1151 of the European Parliament and of the Council of June 20, 2019 (the “Directive“) member states are obliged to provide the possibility for the digital incorporation of limited liability companies. Enabling the digital incorporation of a company makes it easier to set up a capital company and the associated costs, time, and administrative burdens are reduced.

The Directive emphasizes that the effective functioning, modernization, and administrative streamlining of a competitive market requires that the start-up of an economic activity should be more easily, rapidly, and more effective. It is expected to have positive economic consequences. However, the Directive at the same time acknowledges that it is essential to offer protection against crime, fraud, and abuse.

Legislative proposal

On June 15, 2021, the Minister for Legal Protection has submitted a bill to implement the Directive. The preliminary draft enables the online incorporation of a Dutch BV. It will also remain possible to set up a Dutch BV by means of the traditional notarial paper incorporation deed, which is currently the only option. The internet consultation regarding the bill is now closed.

The Directive will be implemented in Book 2 of the Dutch Civil Code (Burgerlijk Wetboek) and the Civil-Law Notaries Act (Wet op het notarisambt). In order to limit the digital incorporation to simple situations, the digital incorporation is only possible for Dutch BVs if the shares are paid-up in cash. For the online incorporation a digital deed of incorporation is used. To enable the remote execution of the digital deed of incorporation a new title is added to the Civil-Law Notaries Act. This title provides the possibility for the digital execution of the incorporation deed, pursuant to which it will no longer be necessary to physically be represented or present at the notary’s office to execute the notarial paper deed of incorporation. The digital identification of the persons appearing before the notary will happen using a life video connection. For this purpose, the Royal Notarial Professional Organization (Koninklijke Notariële Beroepsorganisatie, the “KNB“) has provided an online central execution platform that has implemented the digital incorporation process including a digital identifier at the highest security level pursuant to the eIDAS regulation (the “Digital Incorporation System“). This way the gatekeeper role of the notary is maintained. The final execution by the parties takes place by means of an electronic signature through the online platform.


The intention was that each EU member state had implemented the Directive by August 1, 2021. The Dutch Ministry of Justice and Security has asked for postponement to complete the legislation process in a careful manner. Extension to implement the Directive was obtained. The Netherlands must now implement the Directive as soon as possible but in any event before August 1, 2022.

The first version of the Digital Incorporation System is already finalized and is therefore ready to use when the Directive is implemented. The KNB is currently working on a platform for notaries to become acquainted with the Digital Incorporation System. There will also be an opportunity to give feedback on the system. Based on this, the KNB will improve the Digital Incorporation System for the final version.


With the introduction of the law (and as a result of the Directive), it will soon be possible to set up a Dutch BV digitally at the notary in the Netherlands.

The full text of the draft legislative proposal (Dutch only) and the full text of the Directive can be found by clicking on the link.

If you have any questions with regard to this subject, please do not hesitate to contact us.