Superkern again approves additional coronavirus support measures

Stimulating investment

The first set of measures focuses on the stimulation of investment:

• A temporary Covid-19 tax shelter system will be in effect until 31 December 2020. This system only applies for SMEs that suffered the consequences of the coronavirus crisis.
• Investments made in the period from 12 March through 31 December 2020 will qualify for a higher investment deduction of 25 percent.
• For costs relating to event organisation and catering up to 31 December 2020, the deduction has been increased from 50 to 100 percent. This is intended to prevent the massive postponement of all events until next year, as this would be an additional blow to the event sector, already one of the hardest-hit sectors.
• The VAT advance that companies would normally need to pay before 20 December 2020 has been suspended. This measure is intended to improve the companies’ cash flow.
• The portion of the net income that is eligible for tax relief on donations will increase from 10 to 20 percent. Furthermore, the tax relief on donations to recognised charities in 2020 will increase from 45 to 60 percent.

Organisation of work

The second set of additional coronavirus support measures relates to the organisation of work:

• A scheme to handle the transition from temporary unemployment due to coronavirus force majeure to traditional unemployment for economic reasons. Companies can make use of this scheme if they have suffered a 10% loss of turnover. In that case the employee will continue to receive 70 percent of their capped pay as long as they follow two days of training during each month of unemployment.
• Enterprises undergoing reorganisation or in difficulties may reduce their employees’ working hours in anticipation of the resumption of normal business activity, either by means of a collective reduction of working hours, the time credit or the end-of-career time credit, for which the access to benefits will be reduced from 57 to 55 years of age.
• The current coronavirus parental leave will be extended until 30 September 2020. This benefit will be increased to 150 percent for single parent families and families with disabled children.
• Compensation of costs incurred by teleworkers will be simplified, with a maximum of EUR 127 per month.

Finally, an agreement was reached on EUR 100 million in funds to be made available to Public Welfare Centres.