Since the outbreak of the Corona crisis, there has been speculation about the fiscal support measures that would give our economy breathing space again. These support measures are gradually taking shape. We still have to wait for the final legal texts, but the broad outlines have almost been finalized and many companies can find some opportunities in these measures. In addition, a new series of staff support measures was approved.
Fiscal support measures
We distinguish two broad categories in the fiscal measures:
1) Supporting businesses experiencing financial difficulties
2) Measures to spur buying behavior and thus keep the economy going.
In order to support companies in financial difficulties, they will have the possibility to offset the losses they suffer due to the crisis against their profits from the previous year. This will reduce the amount they will pay in taxes this year. Therefore, this loss relief allows companies to keep more money in their business this year. This loss relief is subject to several conditions, so a proper analysis will definitely be needed to apply this measure.
Last Friday, some additional measures were also announced to keep the economy going. The most important measures are the following:
- The investment deduction for SMEs will be increased to 25% for investments made between 12/03/2020 and 31/12/2020. This will allow SMEs to enjoy a tax deduction of 25% on all qualifying investments they make during that period.
- The deductibility of event expenses will be increased to 100% instead of 50% until 31/12/2020.
- The December advance on VAT is postponed by 1 month.
An additional tax shelter system for individuals investing in SMEs and numerous other smaller measures are also provided.
These new support measures make it interesting for SMEs to continue investing, despite the crisis, and it is worth considering not postponing events.
Most measures are subject to conditions, we can of course assist you in finding out which support measures apply to your plans.
Staff support measures
The costs associated with working from home, up to a maximum of 127 euros per month, will be easier to reimburse in the future. At present this still requires in principle a ruling from the tax authorities, but this condition would disappear.
Furthermore, corona parental leave will continue until September 30 of this year. The amount of the benefit is also increased to 150% from the traditional parental benefit for single people with family burdens, and parents caring for children with disabilities. Although the self-employed cannot normally claim parental leave, the self-employed who reduce their activities partially to care for their children can still claim benefits.
In addition, a transition is provided from temporary unemployment due to corona force majeure to classic economic unemployment. Employers who see their sales drop by at least 10 percent would be able to claim this form of temporary unemployment, but without the administrative hassle that normally accompanies it. Workers would receive 70 percent of their last capped salary and would also be entitled to two days of training for every full month of unemployment.