I am an entrepreneur with high fixed costs
Entrepreneurs in the Caribbean Netherlands who are affected by the measures in connection with coronavirus can (again) receive a compensation from the Ministry of Economic Affairs and Climate (EZK). This fourth compensation can vary between $425 and $400,000.
This compensation is meant for entrepreneurs who are active on Bonaire, Saba or St. Eustatius and who incur a loss of turnover of at least 30% due to the corona crisis, meaning that they are less able to bear their fixed costs.
What has changed compared to the third compensation from EZK?
- The period to which your application relates.
- The compensation factor has been increased from 0.75 to 0.85.
- The minimum amount that can be paid out is now $ 425.
- The maximum amount that can be paid out is now $ 400,000.
What are the qualifying conditions?
- In the months from October through December 2020 you had a loss of turnover of at least 30% as a result of the corona crisis, compared to the same period in 2019.
- Your company is located in the Caribbean Netherlands (Bonaire, Saba or St. Eustatius).
- On 13th of March 2020, your company was known to the tax office (BCN) as an active company.
- Your company has a business establishment at an address other than your residential address, or at the same address but clearly separated from your residence and with its own entrance. Or you have a company of which it is logical that it has no establishment at all.
- Your company is not a public company (‘overheidsbedrijf’).
- Your company is not bankrupt and has not filed a petition for suspension of payments with the court.
I believe to meet the above mentioned conditions. Which steps should I take?
1. Add up your turnover figures for the months of October, November and December 2019*;
2. Add up your turnover figures for the months of October, November and December 2020;
3. Fill in the calculation module. This will indicate whether your loss of turnover is 30% or more and what the possible amount of the compensation is**.
4a. Complete the application form and send it by e-mail to tegemoetkomingEZK@rijksdienstCN.com.
4b. If the outcome from the calculation module is $6,000 or more, please also have the statement (page 3 of application form) completed and enclose it with your application.
* Was your company not yet established in the mentioned period of 2019? Please contact us at tegemoetkomingEZK@rijksdienstCN.com for further explanation.
** Please note: no rights can be derived from the calculator. If we have questions about your application, we will contact you.
I cannot open the calculator, can I do the calculation manually?
It is best to open the calculator on a computer or laptop with the Excel program installed on it. If you have trouble opening the calculation module (an Excel file), it is also possible to calculate your loss of turnover and the amount of your possible compensation yourself. Read the following questions and answers to learn how to do so.
Loss of turnover in $
* Add up your turnover for the months of October through December 2019*;
* Add up your turnover for the months of October through December 2020;
* Subtract the calculated turnover of 2019 from the calculated turnover of 2020.
The amount must be negative to reflect a loss of turnover in $.
Click here for a practical calculation example.
Loss of turnover in percentages
* Add up your turnover for the months of October through December 2019;
* Add up your turnover for the months of October through December 2020;
* Subtract the calculated turnover of 2019 from the calculated turnover of 2020;
* Divide this number by the calculated turnover for the months of October through December 2019;
* Multiply the result by 100.
The amount must be negative and reflects your loss of turnover in percentages. To be eligible, your turnover must have decreased by at least 30%. Click here for a practical calculation example.
Amount of compensation
The amount of the allowance is calculated as follows: loss of turnover in $ X 0.29 X 0.85.
The compensation can range between $425 and $400,000.
What does the factor of 0.29 in the formula mean?
Based on figures from the Central Bureau of Statistics (CBS), an average of 0.29% of fixed costs is used for all companies in the Caribbean Netherlands. Hence the factor 0.29 in the formula.
What does the factor 0.85 in the formula mean?
The value 0.85 stands for the compensation factor: the result is multiplied by 0.85 to reach the amount of the compensation.
What is the minimum / maximum level of the compensation?
The level of the compensation varies, depending on your loss of turnover. You qualify for compensation if the amount calculated in the calculation module exceeds $425. A qualifying company can receive a maximum of $400,000. This is equivalent to the maximum amount that is paid in the European Netherlands.
My outcome was $6,000 or higher. I therefore need to have the statement completed and signed, and hand it in together with my application. Who can complete this statement?
The statement must be completed and signed by someone other than the applicant for the compensation, who is independent and knowledgeable about the company’s finances. This can be for example a bookkeeper or accountant. The person who signs, shares responsibility for the specified figures. The statement can be found on page three of the application form.
If the figures appear to be intentionally incorrect, then a report of forgery can also be filed against this person.
Is there a calculation example of the above?
By clicking here you get some sample calculations of fictitious organizations. This information can help you further in calculating your compensation.
I don’t have turnover figures from October through December 2019, because my company did not exist yet at that time. How do I calculate my loss of turnover?
If your company started after the 1st of October 2019, it is best to contact the SZW unit of RCN via tegemoetkomingEZK@rijksdienstCN.com. Please state the exact date on which your company started, so that we can provide you with specific information about what you can do in your case.
What is meant by being ‘known to the tax office’?
This means that on the 13th of March 2020, the company was marked by BCN as an active company for one or more of the following tax laws: income tax (opbrengstbelasting), wage tax (loonbelasting), income tax (inkomensbelasting) or general spending tax (algemene bestedingsbelasting).
Many more companies are registered with the Chamber of Commerce than there are companies known to the tax office. So-called "dormant" or inactive companies are not eligible for the compensation, even if they are registered with the Chamber of Commerce.
I have a home business, am I eligible?
You may be eligible if you have a business at home. There must be a clear division though between your home and your company. This means that there must be a separated space with a separate entrance for your company.
My company does not have a physical location, am I eligible?
If it makes sense for the nature of your work that you do not have a physical location, you may be eligible. This could be the case, for example, if you have a driving school, food truck or plumbing company.
Does it matter in which sector my company operates?
No. Given the high dependence of the economy of the Caribbean Netherlands on tourism and the large interdependence of companies in a small-scale economy, the starting point is that all sectors are affected by the measures related to the coronavirus. So it does not matter in which sector your company operates, as long as you meet the above conditions.
Does it matter what legal form my company has?
No. All companies that meet the conditions are eligible for the compensation.
I have several companies. Can I apply multiple times?
If you have several companies with different Chamber of Commerce and CRIB-numbers and you meet the conditions per company, this is possible. It is not possible to do multiple applications for several branches of the same company.
I received a compensation from the first, second or third regulation of EZK, do I need to submit a new application?
Yes. You must make a new application to apply for the fourth compensation.
Which organization carries out this compensation from EZK?
In the Caribbean Netherlands, this compensation is carried out by the RCN unit of Social Affairs and Employment (Sociale Zaken en Werkgelegenheid, SZW). The Chamber of Commerce supports in the application procedure on Bonaire.
How can I submit a request?
With regard to social distancing, we call on everybody to apply digitally.
You can complete the application form for the fourth compensation from EZK, sign it and e-mail it to tegemoetkomingEZK@rijksdienstCN.com. Include a copy of your valid ID with your signed application form.
Include the statement if you want to apply for compensation of $6,000 or more. In that case you must also include a copy of a valid identity document of the person who signs the statement.
If you need help filling in your application or if you have additional questions, you can contact the Chamber of Commerce on Bonaire via the e-mail address steunloket@KVKbonaire.com.
For urgent questions you can contact the SZW unit by telephone (Bonaire: 781-5554, St. Eustatius and Saba: 790-0052 or 790-0053). Please note that due to busy periods we cannot immediately attend to everyone.
When do I receive the compensation?
If you are awarded the compensation then you receive the amount to which you are entitled within a maximum of five weeks (decision period three weeks, payment term two weeks). The SZW Unit of the RCN aims to pay you faster.
Up to when can I submit an application?
You can submit an application for the fourth compensation up to and including the 30th of April, 2021.
What happens if it turns out afterwards that my provided information is incorrect?
The RCN- unit SZW will randomly check afterwards whether the provided information is correct. We use data from the Dutch Caribbean Tax Authorities (BCN) for this purpose. If it turns out that you completed an excessively high amount, this can lead to a recovery of payment. If the figures turn out to be deliberately incorrect, SZW can also file a report for forgery.
It was previously announced that the support package has been extended until the 12th of July, 2021. Will further allowances from EZK follow?
How the support package is further implemented after this fourth compensation depends on the development of the situation surrounding the corona virus.