1st Package of government support measures in connection with Corona
Ministers of Finance and Economic Affairs have just announced a number of aid measures at 6:50 pm, the most important of which are listed below:
1) Instead of the working hours reduction, there will be an emergency fund Corona whereby employers can receive a compensation of up to 90% of the paid wages under main conditions that the wages will be paid and that no one will be fired. All applications that have already been made for the reduction of working hours will be converted into applications for this emergency fund. The government is now working hard on how this application should be made and further information will follow.
2) For entrepreneurs and freelancers there will be a 3-month deferral for the following taxes with a written request: Income tax, Corporate tax, Turnover tax and Payroll tax. No default penalties will be imposed and a very small interest will be charged (almost nil).
3) There will be a one-off fee of € 4,000 for companies who are hit the hardest, such as the catering and travel agencies. Specific conditions will be announced later.
4) The BBZ scheme will be relaxed and expanded for entrepreneurs. Entrepreneurs who cannot make ends meet can receive assistance up to the minimum wage and do not have to repay it. There will also be no capital test or partner test. This scheme is also being further elaborated and further information will follow. It must be applied at the municipality where the entrepreneur lives. If necessary, an advance can be requested from the municipality.
These measures are a first aid and will be expanded where necessary or new measures will be added.
Other measures not mentioned will be further explained in as news item on our website. We will also provide you with more specific information about the above measures later.
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Published on: 17 March 2020