Windwardside, Saba
THE HAGUE--The expanded economic support and recovery package that the Dutch government announced on Thursday will also apply for the Caribbean Netherlands. The wage subsidy remains at 80 per cent, the fixed cost compensation stays at 75 per cent and payment of taxes is extended until July 2021.
The continued support for Bonaire, St. Eustatius and Saba was confirmed by letter that Ministers Bas van ‘t Wout (Economic Affairs and Climate Policy), Wopke Hoekstra (Finance) and Wouter Koolmees (Social Affairs and Labour) sent to the Dutch Parliament on Thursday. The extensive letter about the expanded economic and support recovery package for the Netherlands contained a few paragraphs about the Caribbean Netherlands.
It was stated that the point of departure remained that for the Caribbean Netherlands an approach similar to the one for the Netherlands was applied, taking into account the local situation on the islands. “The current situation in the Caribbean Netherlands warrants extending the temporary subsidy regulation on wage cost and loss of revenue in the second quarter of 2021.”
The compensation for wage cost remains 80 per cent, and the income assessment for self-employed entrepreneurs will not be implemented. The additional expenditures associated with these measures are expected to cost the Dutch government about 1.5 million euros.
The subsidy regulation on fixed cost compensation for the Caribbean Netherlands remains in effect. The regulation contains a standard fixed cost ratio for all sectors and the subsidy percentage was increased from 50 to 75 in the fourth quarter of 2020 to assist entrepreneurs on the islands in paying their fixed cost.
In order to continue the 75 per cent subsidy regulation on fixed cost compensation for the Caribbean Netherlands in the first and second quarter of 2021, an additional eight million euros will have to be reserved on the budget of the Ministry of Economic Affairs and Climate Policy EZK. The current budget for this measure was six million euros.
In line with the Netherlands, the payment extension for taxes will be prolonged until July 1. This will give entrepreneurs some much-needed leeway in paying their taxes.
