QUIT AS
ENTREPRENEUR

QUITING YOUR BUSINESS

At some point, you may be thinking of closing your business. There’s a lot to consider. Emotionally, but also financially! The larger your company, the more complex the legal and administrative settlement. To help you with this, there are two options; the Bbz and the IOAZ. In some cases, the Bbz prior to the IOAZ is also possible.

LAW IOAZ

If you are thinking of stopping as a self-employed person because you have insufficient income from your business, you may be eligible for an IOAZ benefit. You will receive the benefit on the basis of the “Wet Inkomensvoorziening oudere en gedeeltelijk arbeidsongeschikte gewezen zelfstandigen” (IOAZ). This scheme only applies if you are 55 or older, but you have not yet reached the state pension age.

BBZ REGULATION

You need to end your business? In that case, you can appeal to the Bbz. With this supplementary periodic benefit you can supplement your income up to social assistance level. Then you will have enough money to live on during the termination of your business. You apply for the benefit from us before you stop your business.

INFORMATION IOAZ

Act "Inkomensvoorziening Oudere en gedeeltelijk Arbeidsongeschikte gewezen Zelfstandigen" (IOAZ)

The “Wet Inkomensvoorziening oudere en gedeeltelijk arbeidsongeschikte gewezen zelfstandigen” (IOAZ), it may be possible to receive an income guarantee at the level of the social minimum until your retirement age after you have terminated your self-employed activity. The IOAZ benefit is income supplementary, for example to income from employment or another benefit, up to social assistance level. The IOAZ is an unemployment benefit, not an early retirement scheme.

This scheme is especially intended for the self-employed, older than 55, who has to terminate the business or profession due to a low income. If your partner cooperates in the company, you can also rely on the scheme under the same conditions.

We take equity into account: assets such as savings, own house, car or jewellery, less the debts to be repaid and the legally determined capital release for entrepreneurs.

You are not eligible for a benefit if your other income and that of your partner, if any, exceed the IOAZ basis. After all, a benefit is always supplementary. You and your partner, if any, are also obliged to continue to look for work and to accept suitable work. Please note: an application for an IOAZ benefit must always be submitted before the company is terminated (deregistration from the Chamber of Commerce).

Income after business termination

After termination of self-employment, there is an arrangement for older entrepreneurs whereby you have an income at the social minimum until you reach the state pension age.
This is the IOAZ regulation (Wet inkomensvoorziening oudere en gedeeltelijk arbeidsongeschikte gewezen zelfstandigen). If you have to terminate or sell your company due to circumstances, because your income is too low, the IOAZ can offer a solution. Your partner, if he/she works in the company, may also qualify for the regulation under the same conditions. The IOAZ benefit is always a supplement to your income and that of your partner or other co-residents up to the IOAZ basis. The benefit will not start until after all self-employed activities have been discontinued. You must, however, submit an application for this regulation before business termination. Bureau Zelfstandigen Fryslân Bureau assesses the application and determines the right to a benefit.

Conditions
  • You are 55 or older, but you have not yet reached the state pension age.
  • You have worked continuously for the past 10 years, of which the last 3 years as a self-employed person. Before that, you worked for 7 years as a self-employed person or as an employee.
  • You have worked 1,225 hours or more per year in your own company. This is an average of about 24 hours a week.
  • Your partner is regarded as a self-employed person and is entitled to IOAZ if he or she is 55 years of age or older, but has not yet reached the state pension age. And work at least 525 hours per year in the company.
  • The income (profit) from your company has been on average less than € 27,021 (amount in 2022) in the last 3 years. Any other income is also included in the income. If your partner participates in the company, this income may be included. This applies to the cooperation fee (above € 5,000) and the profit share. Your partner’s other income, for example wages or unemployment benefits, does not count.
  • For the future, you expect an income of less than € 27,597 (amount as of January 1, 2022). The municipality will investigate this.
  • The monthly income after termination of the business is lower than the applicable benefit standard.
  • You submit the application for an IOAZ benefit before the company is terminated. After the application, you will terminate the business within a period of 18 months. Entitlement to an IOAZ benefit does not arise until the company has ended.
You need this when applying
  • Company financial statements for the past three years.
  • IB tax issues for the past three years.
  • Provisional (quarterly) figures of the current financial year (year of application).
  • Company partnershipcontract/notarial deed of incorporation.
  • Wage / benefit specification(s) / about income (also from your partner).
  • Mortgage position, WOZ assessment.
  • Daily statements of all bank and giro account(s) of the last three months, both business and private.
  • Debt overview.
  • Savings and share accounts/other assets, assets (such as caravan, boat, art, jewellery, etc.)
  • Valid proof of identity (also from your partner!) (passport, European identity card, residence document) Please note: no driver’s license!

INFORMATION BBZ

Besluit bijstandverlening zelfstandigen (Bbz)

You need to end your business? In that case, you can appeal to the Bbz. With this supplementary periodic benefit you can supplement your income up to social assistance level. Then you will have enough money to live on during the termination of your business. You apply for the benefit from us before you stop your business.

You can receive an additional periodic benefit for a maximum of 12 months. Are you unable to terminate your business within 12 months? Then you can get an extension of 12 months.

Conditions
  • You are 18 years or older, but you do not receive an AOW.
  • You are a Dutch citizen, a citizen of a country in the European Union, or you have a valid residence permit.
  • Your company must be located in the Netherlands.
  • You go for 1,225 hours or more.
  • Your partner’s income is included in determining how much supplementary benefit you will receive.
You need this when applying
  • You must be able to upload a copy of your passport, ID card or residence document of you and your partner, as jpg or pdf.
  • You will need financial information to complete the form properly. For example, we want to know how high your housing costs are, or what income you have in addition to your business. Therefore, keep the following information at hand:
    • Information about your housing costs (rent/mortgage interest/leasehold).
    • Information about your disability insurance.
    • Information about your income (annual accounts/income tax returns/wage or benefit specification).
  • You may need to upload some documents. You will see this during the application.