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superkern approves additional coronavirus support measures

Tax & Legal
10 June 2020

by Dries Torreele

Superkern approves additional coronavirus support measures

Last week the Belgian federal cabinet’s ‘Superkern’ agreed to a series of additional measures from the third phase of the Federal Plan for Social and Economic Protection. These measures are intended to shore up the purchasing power of vulnerable groups and help boost the economy.

Superkern approves additional coronavirus support measures

Extension of support measures

The first relief package concerns the measures adopted by the federal government at the beginning of the coronavirus crisis. These will be extended through 31 August 2020. The most important are those relating to temporary unemployment due to coronavirus force majeure, the bridging right for the self-employed and the access to coronavirus parental leave.

Other measures to be extended include the suspension of the gradual decrease of unemployment benefits, all measures benefiting artists, the subsidy for food aid for Public Welfare Centres and the deductibility of computer equipment donations to schools.

Special support measures for troubled sectors

The Superkern approved several special support measures for troubled sectors such as the hospitality industry. These aim to mitigate the socio-economic impact of the gradual resumption of operations. The measures in question:

  • Extension and improvement of the bridging right for the self-employed through 31 August 2020, with another possible extension through 31 December 2020
  • Extension of the temporary unemployment scheme until 31 December 2020
  • Partial exemption of withholding tax for the upcoming three months for hard-hit sectors that have been forced to resort to temporary unemployment

These measures are intended to encourage the re-employment of employees who are currently still temporarily unemployed due to the coronavirus. 

There will also be an extension of the bank guarantee scheme to help keep companies solvent. The Parliament will be discussing how to expand the scope to include SMEs as soon as possible. This applies to the possible proposals to benefit artists as well.

Attention to purchasing power and economic activity

Furthermore, the Superkern wishes to reinforce the purchasing power of Belgian citizens and our country’s economic activity. It has therefore approved the following additional support measures:

  • Employers can opt to issue EUR 300 consumption vouchers to their employees in support of the most heavily affected sectors. Such vouchers may be used to purchase goods and services in the hospitality sector, cultural sector, etc. The vouchers are fully deductible and tax-free. This scheme does require the social partners’ agreement.
  • There will also be additional support for people with a living wage, people with disabilities and those who qualify for a guaranteed income for the elderly. This support amounts to six payments of EUR 50 per month.
  • All Belgian residents can make use of a 10-journey SNCB Rail Pass that is valid from 1 July through 31 December. The supplementary charge for bicycles on the train will be temporarily suspended.
  • Public Welfare Centres will receive further support through an additional temporary 15% increase in the federal government’s reimbursement rate.

The Superkern and the federal government will now proceed to negotiate the second package of additional support measures.