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NOW 3.0: Compensation of Wages in the Netherlands

In previous publications we already mentioned that in the Netherlands it is possible for businesses to apply for partial compensation of wages called NOW-ruling, during the COVID19-pandemic. During the previous rounds, companies could apply for NOW 1.0 and NOW 2.0. In the meantime the NOW 3.0 has opened up.

Periods

The NOW 3.0 ruling will be divided into 3 periods:

  • Now 3.1: concerns the wage period: October, November and December 2020 and the turnover period over the 3 consecutive months between 1 October 2020 and 28 February 2021;
  • Now 3.2: concerns the wage period: January, February, March 2021 and the turnover period over the 3 consecutive months between 1 January 2021 and 31 May 2021;
  • Now 3.3: concerns the wage period: April, May, June 2021 the turnover period over the 3 consecutive months between 1 April 2021 and 31 August 2021.

Now 3.0 Application Deadlines

  • Now 3.1: final application date is 13 December 2020
  • Now 3.2: final application date 14 March 2021
  • Now 3.3: final application date 13 June 2021.

If your company has applied for NOW 1.0 and NOW 2.0, the NOW 3 period should be consecutive to the prior NOW-periods. So if your NOW 2.0 period is August, September, October 2020, the NOW 3.1 period will be November, December 2020 and January 2021. Over that period the loss of turnover should be calculated.

Maximum payment

Under NOW 3.1 the loss of turnover should be at least 20% and the maximum reimbursement is 80% of the wage in the three-months period. The wage is maximized to € 9,691 gross per employee per month.

Under NOW 3.2 the loss of turnover should be at least 30% and the maximum reimbursement is 70% of the wage in the three-months period. The wage is maximized to the indexed amount of € 9,691 gross per employee per month.

Under NOW 3.3 the loss of turnover should be at least 30% and the maximum reimbursement is 60% of the wage in the three-months period. The wage is maximized to the indexed amount of the maximized daily wage gross per employee per month (currently € 4.845).

During the above mentioned periods the wage, compared to the wage paid in June 2020 should be almost the same. Deviation to the maximum of 10% is allowed.

Accounting statement – declaration from an expert

After filing the preliminary application companies will be required to file a final application based on the final figures. If the preliminary NOW 3 allowance is less than EUR 20.000 and the final allowance is not over EUR 25.000 no accounting statement, nor a declaration from an expert will be required. Upon the request from the UWV the company should provide figures related to the final calculations of loss of turnover.

If the preliminary NOW 3 allowance is more than EUR 20.000 and the final allowance is over EUR 25.000 a declaration from an expert is required. This declaration can be provided by an accountant or a tax advisor.

If the preliminary NOW 3 allowance is more than EUR 100.000 and the final allowance is over EUR 125.000 an accounting statement will be required.

Foreign companies

Foreign companies with a Dutch wage tax number and an IBAN bank account (bank account in one of the SEPA countries: European Union, Iceland, Liechtenstein, Norway and Switzerland) can apply for this regulation as well.

If you need any help related to filing NOW 3 application or if you want to know how the loss of turnover should be calculated, please do not hesitate to contact us.

Crowe Peak
Olympisch Stadion 24-28 1076 DE Amsterdam, The Netherlands
+3188 2055 000 contact@crowe-peak.nl