Government spent 6.5 billion euro on KLM

G

KLM has a tax debt of 1.371 billion euros. This means that the company received a total of € 6.5 billion in support during the coronavirus crisis, writes the newspaper.

All companies were able to postpone their tax payments during the coronavirus crisis. 376,000 companies took advantage of this. This concerns, for example, the wage tax, sales tax and corporation tax that did not have to be paid for a while.

By the end of september, 274,000 companies had a total tax debt of 19.7 billion euros. According to NRC, KLM is talking about an amount of EUR 1.371 billion that was deferred in taxes during the crisis. No other company got so much tax deferrals, writes the paper. Companies must pay their tax debt by October 1, 2027.

KLM says to NRC that the possibility to postpone tax was used because it gave financial space in a crisis period with far behind income. “As soon as the recovery starts again and the revenues return to the level, the backlog will be made up,” a spokesperson told the newspaper.

In addition to tax deferrals, all companies affected by corona could also receive wage support. KLM is by far the largest recipient of this wage support, as has already been shown. The total amount involved is 1.7 billion euros that the airline received during the crisis to pay the wages, writes NRC.

This subsidy is not a loan for companies, but it may be that companies have to repay part of it if things went better than expected. Outgoing minister Hoekstra of Finance informed the chamber last month that he did not expect KLM to have to repay money, based on the results.

In addition to these schemes for all companies, KLM also received a specific support package of EUR 3.4 billion in loans and guarantees from the Dutch government. Of this, the airline has now used 0.9 billion. KLM also talks with the Dutch government about support for equity. These discussions are ongoing but, according to KLM, are complicated due to the strict rules of the European Commission regarding state aid.

In exchange for aid, KLM has to surrender slots to avoid putting competing airlines at a disadvantage. These landing rights are very important for the company, Elbers said earlier.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

Add comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

Categories