COVID-19 Support Measures

for small business owners, self-employed and freelancers

The Belgian government has also thought of smaller business owners with regards to support measures. A quick roundup of the main measures. Please note there are some differences between Flanders, Wallonia and Brussels, so always check with your own bookkeeper before taking action.

 

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Deferral of Payment and Guarantees

The banks and the government are very much aware of the difficult situation in which both companies and individuals now find themselves. They want to support and financially support them as much as possible. In this way, they have every opportunity to get through this turbulent period as well as possible and to quickly find a stable financial situation as soon as the corona crisis has subsided.

Together with the Minister of Finance, and with the support of the National Bank of Belgium, the sector has worked out an agreement for viable companies, based on two pillars:

■ The financial sector is committed to viable businesses and the self-employed as well as mortgage borrowers who are at risk of payment problems by postponing the corona crisis until 30 September 2020, and this without charging any costs.

■ The federal government will activate a guarantee scheme for all new loans and credit lines with a maximum term of 12 months, granted by banks to viable non-financial businesses and the self-employed.
These support measures are intended to provide financial flexibility in order to to enable taxpayers to overcome temporary financial difficulties.

Quick Overview

a. Which companies?
Natural or legal persons with an enterprise number (ECB/KBO):
∞ regardless of their sector of activity
∞ who are experiencing financial difficulties as a result of the spread of the coronavirus and can demonstrate this (e.g., a decrease in the number of business, a significant drop in orders and/or reservations, chain reaction effects with partner companies, etc.). Support measures may not be granted to undertakings which, regardless of coronavirus, experience structural payment problems.

b. What debts?
∞ Withholding tax (bedrijfsvoorheffing / précompte professionel)
∞ VAT (payment deadlines are extended interest free)
∞ Personal income tax
∞ Corporate income tax
∞ Taxation of legal persons

c. What is the timeframe?
∞ Application to be submitted no later than 30 June 2020

d. What measures?
∞ Payment plan
∞ Exemption from interest on arrears
∞ Remission of fines for non-payment

e. What conditions?
∞ Compliance with the conditions for filing declarations
∞ debts must not result from fraud

Support measures will be withdrawn in the event of:
∞ failure to comply with the payment plan granted, unless the debtor takes
timely contact with the administration
∞ occurrence of collective insolvency proceedings (bankruptcy, judicial reorganisation, …)

f. What steps?
Contact your bookkeeper for further details and the links to the correct documents for your region.

Social Security Contributions

Option 1. Postponement of Payment

Entrepreneurs in main occupation and assisting spouses may apply for deferral of payment of 1 year if they experience difficulties due to the coronavirus. You do not pay any surcharges or interest (in case of timely payment in 2021) and your rights will continue to accrue.

Which Quarters:
∞ 1st quarter 2020: payment date postponed from 31 March 2020 to 31 March 2021
∞ 2nd quarter 2020: payment date postponed from 30 June 2020 to 30 June 2021

Deadline Request:
Applications before 15/06/2020 for quarter 1
Applications before 15/06/2020 for quarter 2

How to apply:
Send your bookkeeper an e-mail with the following details and request a postponement:
– Surname and first name
– Place of residence
– Name and seat of your company
– Company number
– Professional activity in which you are active

Please note: direct debit customers must notify the bank themselves. If they fail to do so, social security contributions will still be credited in the event of postponement of payment.

The measure concerning the postponement by one year of the payment of social security contributions for the first two quarters of 2020, as well as the regularisation contributions due on 31 March 2020, is extended to ALL categories of self-employed workers (i.e. not only applicable to self-employed workers in their main profession and assisting spouses). In view of the economic impact of the emergency measures to limit the spread of the coronavirus COVID-19, the application for deferral of the first quarter 2020 contributions may be submitted until 15 June 2020.

Option 2: Reduction of Social Security Contribution

You can have your social contribution reduced to the legal thresholds when your income is reduced. Overview Thresholds: https://www.xerius.be/nl-be/zelfstandigen/sociale-zekerheid/drempelbedragen

Option 3: Temporary Financial Difficulties Exemption

You can request an exemption due to ‘temporary financial difficulties’ for the social security contributions of the 1st and 2nd quarter of 2020. If you want to apply for a waiver of your fees for these two quarters, we recommend that you do so before you receive the statement for the second quarter. An application for future quarters is not possible. This is only available to the full time self-employed and their and assisting spouses in the maxi statute.

If you receive a positive advice, you will not build up any pension rights for these two quarters (this is provisional and can be adjusted due to coronavirus), although your social security (health care) status will not be affected. Also keep in mind that you will have to have been active in this statute for at least 4 quarters. This too may be relaxed, but this is not yet clear.

For the time being, there are no simplified application forms and you have two options: submit directly to the government or as a customer of Xerius via this form. If you have a different social secretariat, please check their website for the relevant paperwork.

However, we are in favour of applying for a postponement of payment first. You can always apply for the exemption later (before the end of 2020).

Replacement Income
(overbruggingsrecht or droit passerelle)

For whom?
YES: ALL self-employed persons in main profession and assisting spouses in maxi statute.
NOT: Self-employed as a secondary profession, pensioners, student self-employed and self-employed persons with equal secondary profession.

Please note: this is considered as a replacement income and cannot be combined with any other benefit (during this break you may also NOT start working as an employee).
Starting date of the entrepreneur does not matter and it is also available to sole proprietors and company managers. The sector in which they are active does not matter either.

The Replacement Income can be combined with the Flemish Nuisance Allowance. If you want to take advantage of this, you must apply for it yourself. Replacement Income is paid out by your social insurance fund (Xerius, Acerta, Liantis, …).

Amount of Payment:
∞ Active in the hospitality industry (even if you do not close your business completely and still offer takeaway meals and close your business for at least one day).

∞ Other sectors (where you are obliged to close your business completely or partially due to the corona virus) and interrupt your activities for at least 7 consecutive days.

∞ Other sectors that close down as a precaution, or because they have too few customers.

They receive a benefit of 1,291.69 euros (or 1,614.10 euros in case of dependants) for either March or April, depending on which month you interrupt your activities for at least 7 consecutive days. Are your activities interrupted for at least 7 consecutive days in both months? Then you can get a replacement income in both March and April.

How to apply and when can you expect your payment?
Option 1: Send an e-mail to your social insurance fund and mention the following in the e-mail:
o Apply for a replacement income because of corona virus,
o your name, first name and place of residence,
o your customer number, which you will find on your statement or on the back of your identity card (your national registration number is also your customer number).
o your company number and the name and registered office of your company,
o the sector in which you are active and briefly outline the reason(s) why you had to interrupt the activities as a result of the coronavirus.
o the period of interruption: the date that you stop your activities and possibly the date that you resume your activities (the latter date is currently not yet estimable for most people, so it is not necessary to indicate this).
o the bank account number to which the payment may be made.

Also answer the following questions in your e-mail:
o Do you have at least one dependant (wife, cohabitant, parent, grandparent, child,…)?
o Do you exercise a professional activity during the cessation or interruption of your self-employed activity? Or are you still a mandatary or working partner in another company?
o Do you receive a replacement income during the period of interruption?

Option 2: Fill in the simplified application form for ‘coronavirus’ replacement income, sign and send it to your social insurance fund.

Please note: Application in both options must be done by yourself. Your accountant of course will assist you if you have any questions about this.

Hindrance Premium
(hinderpremie or prime unique)

The Hindrance Premium is determined on the basis of the establishment unit of the entrepreneur and applies to forced closures of physical locations (excl. pick-up). There is only a premium of 4,000 euros. The premium of 2,000 euros has been abolished in Flanders. Brussels and Wallonia apply different rules (for the time being) – see further down.

FLANDERS
– 1 establishment:
o 4,000 euros per forced closure and only for physical locations (excl. collection) – proof by declaration on honour
o Pay at least as main professional or 1 FTE as salary

– Multiple locations:
o You receive the Hindrance Premium for a maximum of 5 locations.
o Paying at least as a main professional or 1 FTE as an employee.

The Flemish Hindrance Premium can be applied for up to and including May 5, so you certainly have plenty of time to submit your application.

Download the various documents from the ABRA website.
Apply for the Flemish Hindrance Allowance with this link.

What do you need to have at hand?
∞ Your e-ID and your e-ID pin code (or your smartphone if you log on via itsme).
∞ An active Belgian account number of your company on which the premium can be paid (in IBAN format, i.e. consisting of 16 characters starting with BE,
followed by 2 digits and then the 12 digits of your account number)
∞ Check your normal opening days, as they were before the coronavirus measures
∞ Main or secondary profession
∞ In case of a secondary occupation: do you pay social security contributions like a main occupation? Only auxiliary professionals who pay the minimum contributions of a main professional are eligible.
∞ The website address (url) of your company if you have one
∞ Do you have multiple branches? Be sure to select the right branch for which you are applying for the premium.

Tips:
∞ This premium is tax exempt.
∞ The further promotion of webshops has NO influence on the granting of the premium when a physical location is present.
∞ The Belfius card reader and probably also at other banks can be used as an E-ID reader.
∞ If you do not have an active branch in the KBO or if the position(s) is (are) not correct, you cannot apply for a nuisance bonus (this can possibly still be rectified via the Ondernemingsloket).

WALLONIA
a. Tax freeze in Wallonia
For its part, the Walloon government has frozen all regional taxes related to the number of days that the businesses are closed, prorated to the number of days they are closed.

b. Closure Compensation
Compensation of 5,000 euros per closed company in Wallonia The Walloon Government grants a lump-sum compensation of 5,000 euros for each business that has closed or ceased operations during the period of containment. The sectors concerned are horeca, accommodation, travel agencies and reservation services, retail, as well as travel and provision of services (e.g. beauticians). An indemnity of 2,500 euros is also provided for companies with the activity is restricted, including hairdressers.

■ The information number 1890 remains available for entrepreneurs and Walloon independents.

BRUSSELS
The Brussels government, for its part, has decided to support the treasury of the companies affected through the granting of public guarantees on bank loans for a total of EUR 20 million. It also intends to strengthen support for companies in difficulty via the Centre for Enterprises in Difficulty (CED). Simplification and administrative benevolence towards the companies and businesses affected as well as the anticipation of the treatment and liquidation of economic aid to priority destination for the Horeca, cultural, hotel and event sectors are also applicable.

■ The information number 1819 centralizes all information for companies and entrepreneurs in Brussels.

Compensation Premium Entrepreneurs

As of last week, the Flemish government is providing an additional support measure for entrepreneurs who are not obliged to close down (and therefore cannot apply in conjunction with the Nuisance Premium), but who are still experiencing a large loss of turnover due to the Corona crisis. This is the Compensation Premium. They are still working on the application and correct modalities, for now you can find the latest information on the VLAIO website.

This new premium is aimed at companies and their suppliers who are allowed to continue working or shops that remain open but have a large loss of sales due to the restrictive measures, which can show that they have a loss of sales of -60% in the period between 15 March 2020 and 30 April compared to the same period last year.

For start-ups, a decrease in turnover of -60% compared to the financial plan laid down will be taken into account. NPOs are also eligible, provided that at least one person is employed full time.

Examples: companies in the events sector that also employ many freelancers; (para-) medical professions such as physiotherapists, dentists, psychologists or speech therapists who are only allowed to carry out urgent interventions; companies that provide essential food services such as praline shops or liquor traders, but still suffer a heavy loss of turnover due to lack of passage or tourists; painters or plumbers who are only allowed to carry out urgent repair work; farmers who work specifically for hotel and catering customers, etc….

Amount of Aid
∞ The aid includes a one-off compensation premium of €3,000;
∞ There is a maximum of 5 premiums per company if there are more than one operating seat per company.
∞ Self-employed persons in a secondary occupation, who pay social security contributions as a self-employed person in their main occupation due to the level of income, can also receive the compensation premium of € 3,000;
∞ Self-employed persons in secondary occupation who have an income between € 6,996.89 and € 13,993.78 can claim a compensation premium of € 1,500. This premium also applies to self-employed persons in a secondary occupation who are obliged to close, but does not apply to self-employed persons in a secondary occupation who combine this with a job as an employee of 80% or more.

More information is not yet available at time of publication and so we advise you to refer to the VLAIO website where the application will shortly be made available.

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