Corona debt: These are the options

What about the accrued tax debt and repayment of overpaid TVL and NOW? CM: list how the government handles corona debt.

The Cabinet is investigating whether it is possible to get better data on the debt problem and keeps in touch with the tax authorities. It is expected that some entrepreneurs will start to stall when they start the 60-month repayment of outstanding corona debt with the tax authorities on 1 October. The government is appointing a booster to monitor how the debt is handled. More information will follow this summer.

Pilots to solve crowds

There will also be three pilots to ensure that municipalities, tax authorities and courts are better able to respond to the larger influx of entrepreneurs in financial difficulties. This involves an extension of the Guarantee Fund for Rehabilitation Credit, a plan to bring entrepreneurs with corona debt directly into contact with an administrator of the Debt Rehabilitation Act for Natural Persons (Wsnp) and an associated pilot to see if this administrator can submit an application for entrepreneurs. with problem debt debt for admission to WSNP.

Restart the business

Municipalities are looking at the debt position together with entrepreneurs and what the best way is to deal with it, the government writes. In some cases, this will involve a debt consolidation process to make the business profitable again. These are primarily financing options and debt repayments. The Cabinet refers entrepreneurs to the WHOA, whereby companies agree on a private agreement with creditors to prevent bankruptcy and the TOA credit, which entrepreneurs can restart with.

Finish business

In other cases, it is about stopping the business and switching to paid employment. Entrepreneurs thereby encounter a vague overview of the available help, bottlenecks around the conclusion of debt agreements and costs associated with winding up a business. The government points out the turbo liquidation to entrepreneurs, whereby a legal entity can be quickly dissolved if a company no longer has the prospect of profitability.

Information Chamber of Commerce

Debt relief comes largely from the municipality. Regardless of whether a decision is made to stop or continue, coaching and training can, for example, be used via Bbz counters, debt counseling and Regional Mobility teams. The Chamber of Commerce is also working to improve the supply of information, including a step-by-step plan for entrepreneurs with debt. Furthermore, the Chamber is a good place for information and advice to find the right body. Entrepreneurs can also contact the debt counseling in their municipality,, and the Wsnp administrators.

Too much support received

The Cabinet emphasizes that the government as a creditor is lenient. This concerns the repayment of corona aid as well as the special deferral of payment of tax debts. Entrepreneurs who need to repay NOW wage support can contact UWV for a payment scheme. Companies that have received too much TVL can contact RVO for a more lenient payment scheme, the cabinet said. For these schemes, the same period as the refund of taxes applies: 5 years.

Also read: Corona debt: 4 ways the tax authorities deal with entrepreneurs

Tax debt

The reduced recovery rate will gradually return to the usual level of 4 percent in the coming years. This month, the government is launching an internet consultation to map out bottlenecks that entrepreneurs encounter. Tax debt is repaid over a period of 60 months starting on 1 October 2022. The Tax and Customs Administration will also be satisfied with a lower part of the debt between 1 August 2022 and 30 September 2023, when debt restructuring has been agreed. with an amicable remedy agreement.

Legal contract Options
All companies Private Agreement Homologation Act (WHOA) (with TOA credit)
Legal entities Turbo settlement
Natural persons and entrepreneurs without a legal person Municipal Debt Relief Act (Wgs)
Debt Restructuring Act of Natural Persons (Wsnp)
Both (with / without legal person) Generous payment terms for possible repayment of support measures (NU, TVL, Tozo)
All viable companies The tax authorities are satisfied with a lower percentage of the proceeds in reorganization and restructuring processes.
Other things Dissemination of information via the Chamber of Commerce,, Entrepreneurship sounding board, municipal debt counseling and Wsnp administrators
Available support per. legal form (Source: State)

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