Corona – Flemish government measures
FLEMISH GOVERNMENT MEASURES (updated 24 March 2020 (12h))
Below is an overview of the financial support and compensation measures that have recently been adopted or announced by the Flemish government.
1. Nuisance incentive:
- Conditions:
- Companies with working partners or at least one full-time equivalent registered with the Social Security Services;
- Self-employed workers for whom this is their main occupation;
- Self-employed workers for whom this is not their main occupation who owe similar social security contributions as self-employed workers for whom this is their main occupation;
- Associations or non-profit organisations with at least one full-time equivalent registered with the Social Security Services;
Who suffer the consequences of the mandatory security measures taken by the government.
- Incentive:
- In case of complete closure, the company is eligible to apply for a lump sum of 4.000 EUR for the period until 5 April 2020. As of 6 April, a complementary incentive of 160 EUR per day will be granted.
- In case of a partial closure, the company is eligible to apply for a lump sum of 2.000 EUR for the period until 5 April 2020. As of 6 April, a complementary incentive of 160 EUR per day will be granted.
- Procedure: An online application is available on https://www.vlaio.be/nl/subsidies-financiering/corona-hinderpremie (register with an e-id reader). Applications must be submitted within 30 calendar days following the end of the mandatory shutdown period.
- Conditions: the incentive is awarded for maximum five outlets that employ one full time equivalent. For Horeca, the incentive is awarded for each outlet that employs a full time equivalent and that had to close the consumption area, even if it continues or sets up a take-away activity
Source: https://www.vlaanderen.be/corona-hinderpremie
2. Corona compensation
- Who is eligible: flemish undertakings suffering a drop in turnover over more than 60% compared to the same period last year
- Incentive: 3000 EUR (1500 EUR if it is a secondary professional activity). The incentive applies per establishment with a maximum of 5 incentives per undertaking.
Source https://www.vlaio.be/nl/subsidies-financiering/corona-compensatiepremie
3. Extension of the existing guarantee scheme by the Participatie Maatschappij Vlaanderen (PMV/z):
- This existing guarantee scheme is extended to loans for existing non-banking debts of up to 12 months.
- Next to that, the possibility to extend existing loans under guarantee or to request an extension for repayment was added.
Source: https://www.pmvz.eu/corona-uitbreiding
4. Withholding tax and circulation tax :
The tax assessment notes for the withholding tax will only be issued in September. For the assessment year 2020, companies will be granted a four-month deferral of payment of the annual circulation tax.
Source : https://belastingen.vlaanderen.be/coronamaatregelen-vlaamse-belastingdienst
5. Flexibility with respect to the conditions for the aid measures and subsidies:
Companies that, due to COVID-19, may enter into consultation with the Flemish Agency for Innovation & Entrepreneurship about the possibility of extending the terms of the following subsidies:
- Baekeland mandates;
- Ecology incentive+;
- ICON: subsidies for cooperative demand-driven research;
- Innovation mandates (IM);
- Research project;
- Development project;
- Strategical ecological support (STRES);
- Strategical transformation support (STS);
- Thematic ICON project;
6. SME-grow subsidy:
The Flemish Government steers in particular towards the use of the SME-grow subsidy for companies affected by COVID-19, which can be qualified as the ‘tipping point’.
Source: https://www.vlaio.be/nl/subsidies-financiering/kmo-groeisubsidie
7. Measures for tourism:
The Flemish Government will release 5 million euros for the youth and social tourism industry. In addition, this year Tourism Flanders will waive the collection of the rent from the youth hostels.
Would you like to know more?
The Racine team is at your disposal to answer your specific questions.