Netherlands: Emergency relief and recovery package; “emergency package 3.0” (COVID-19)

Netherlands: Emergency relief and recovery package

The government in a 28 August 2020 letter to the Lower House of parliament presented a relief and recovery package for businesses and workers in response to the coronavirus (COVID-19) pandemic.


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The new package (“emergency package 3.0”) would follow on from the two previous emergency packages and would be based on three pillars:

  • Continuing relief and extending by nine months the temporary emergency bridging measure to retain jobs (Tijdelijke noodmaatregel overbrugging voor behoud van werkgelegenheidNOW), the overhead compensation SMEs (Tegemoetkoming Vaste Lasten mkb—TVL) and the temporary emergency bridging measure for self-employed persons (Tijdelijke overbruggingsregeling zelfstandig ondernemers—TOZO)
  • Stimulating and accelerating investments
  • Providing a supplementary social package

The extension of the relief measures will take place under a (phased) tightening of conditions. An important part of the new package concerns the phasing out of the more flexible special deferral of payment policy for tax debts, including a payment arrangement for the accrued tax debt, and changes to several related measures.

The provisions in the emergency package 3.0 would address or include:

  • Phasing out of deferral of payment for tax debts
  • Extension of temporary emergency bridging measure to retain jobs (NOW 3.0)
  • Extension of overhead compensation SMEs
  • Extension of temporary emergency bridging measure for self-employed persons (TOZO 3.0)
  • Other tax measures including travel deduction, mortgage interest deduction, and VAT exemptions and easing of administrative obligations for payroll tax and social security contributions
  • Sectoral relief, guarantees and guarantee funds
  • Supplementary social package
  • Planned public investments

Read a September 2020 report prepared by the KPMG member firm in the Netherlands

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