You are an entrepreneur aged 55 or over and you are planning to close your business. According to the IOAZ rules, your business has generated insufficient income over the last three financial years. You do not expect the situation to improve.
You have been working continuously for at least ten years, at least the last three of which were spent running your own business. You can apply for an IOAZ benefit and then close your business. (Please note: the application must be submitted before you close your business.)
The government can top up your income to social security level after you have ceased trading. If you are unable to find a job, you will receive the benefit until you reach retirement age.
We determine the amount of the benefit based on your family composition. Do you have a partner with an income? If so, we will take this into account in the calculation. If you receive any other benefits, we may need to deduct these from your IOAZ benefit.
If your business is no longer viable and you need to bridge the gap until it actually closes, there is the ‘Benefit for established/ceasing traders‘
Income
- You must have worked continuously for at least 10 years prior to submitting your application: at least 3 years as a self-employed person and, prior to that, at least 7 years as a self-employed person or in paid employment.
- Your average income over the past three years was less than €27,021. If you were to continue running the business, your income would be less than €27,597 per year.
A non-viable business
- Your business is not viable. The profits from your business (possibly combined with other income) are insufficient to meet all your business and personal obligations. These include, for example, repaying loans, setting aside funds for investments, paying tax and covering your living expenses.
Assets
- We base our calculations on the assets you hold on the date of the business closure. To this end, we would be grateful if you could provide us with the liquidation balance sheet and, if applicable, a valuation report for your property.
Closure of business
- You must apply for an IOAZ benefit before you close the business.
- You must actually close your business within 18 months of submitting your IOAZ application.
- Once your business has ceased trading, you must register as a jobseeker with the UWV Werkbedrijf. You must also participate in programmes designed to help you find a job. You are obliged to accept suitable work. These obligations also apply to your partner, if you have one. Do you have medical limitations? If so, you may be granted a full or partial exemption from the obligation to work.
Administration
- When submitting your application, you must provide access to your accounts, income tax returns and tax assessments for the last three years. You must also submit provisional figures for the current financial year.