Premiums - Flemish Region
FLEMISH REGION
1) DISRUPTION PREMIUM
Who?
The disruption premium and corresponding closing premium can be requested by businesses forced to close down and having their registered seat in Flanders (restaurants, bars, hairdressers, non-essential shops (exception for nutritional shops), … The National Security Council has determined the businesses that need to close down and can be checked on the FAQ of the National Security Council.
The premium can be requested by companies, non-profit organisations and one-man businesses.
Amount?
The premium for compulsory closing amounts to 4.000 EUR and is exempt from personal and corporate income tax.
A business having to stay closed completely after April 6, 2020, which has been decided on March 27, 2020 by the National Security Council, can receive an supplementary allowance per closed day as of April 6, 2020. The supplementary allowance is 160 EUR for each day the business is forced to stay closed whereas it was open in normal circumstances before March 14, 2020.
The payment can be increased for each additional branch that was forced to close down if it has at least 1 full-time employee, registered at the National Social security Office (NSSO). A business having several branches, can apply for a premium for each of the branch, with a maximum of 5 premiums.
Businesses that receive the premium for each of its closed branches, also receive the supplementary allowance per closing day as of April 6, 2020.
The additional allowance applies until the moment the obligation to close the business has been lifted.
How?
The Flemish government opened an online-platform for businesses where they can apply for the premium: www.aanvraagcoronapremie.be/
The premium can also be requested by a proxyholder (external bookkeeper/accountant).
Other useful links:
https://www.unizo.be/hinderpremie-coronatijden
2) COMPENSATION PREMIUM
Compensation premium for entrepreneurs with severe losses in turnover
Who?
Entrepreneurs having an establishment or active seat in Flanders, not obliged to close their business due to the COVID-19 measures, and who are therefore unable to benefit from the disruption premi-um of 4.000 EUR, but who suffer severe decrease of their turnover;
Amount?
The on-time premium amounts to 3.000 EUR.
Conditions?
- In the period between March 15, 2020 and April 30, 2020, the entrepreneur has suffered a drop in the turnover of 60% or more in comparison with the same period of last year (or another period in case of abnormally low turnover during the reference period). In case of a starter, the 60% drop should be compared with the figures as mentioned in the financial plan. If the starter has not submitted a financial plan, it will have to prepare one to justify the lower turnover.
- The business (incl. non-profit organizations) has at least 1 FTE employee, registered with the NSSO or, if it is a company with legal personality, at least 1 full-time working partner;
- A self-employed person with secondary activity can also benefit from:
o A compensation premium of 3.000 EUR if they pay equal social security contributions as a full time self-employed person(net taxable income of at least 13.993,78 EUR);
o A compensation premium of 1.500 EUR if their revenue is between 6.996,89 – 13.993,78 EUR or if they are obliged to close their business.
Note that the compensation premium cannot be requested by a self-employed person with secondary activity if they are employed for 80% or more as an employee. Moreover, this self-employed person with secondary activity does not have to prove a drop in the turnover of -60% if they were obliged to close down their business.
- The business has a main activity included in a list of certain activities (based on the NACE code), which can be consulted on the Vlaio website (https://www.vlaio.be/nl/subsidies-financiering/corona-compensatiepremie/wie-heeft-recht-op-een-corona-compensatiepremie).
o Self-employed persons with secondary activities are entitled to a compensation premium if they are not eligible for a disruption premium;
o Businesses subject to substantial operating restrictions as a result of the federal COVID19 measures.
- The business has a Belgian bank account.
The compensation premium cannot be cumulated with:
- The disruption premium;
- A subordinated loan or Gigarant guarantee with PMV as a result of the COVID19 measures;
- The closure premium due to nuisance public works for the period from 14 March 2020 to 30 April 2020.
The following companies are not eligible for the compensation premium:
- Holdings;
- Patrimony companies (rental and operation of own or leased non-residential property, excluding land);
- Activities of head offices;
- Management companies of which the manager of the company provides business services to a company that has already received the compensation premium and in which this same person is a director, partner or manager.
In order to apply for the premium, the entrepreneur has to draft a statement on honor in which he certifies that the conditions are complied with and that the turnover figures have dropped for 60% or more.
Should it appear, later, during an intervention of the authorities (e.g. tax audit), that the conditions were not fulfilled at the moment of the request, the authorities will recall the compensation premium.
How?
As for the disruption premium for compulsory closing, an electronic platform has been created in order to request the compensation premium on the website of VLAIO. It is now possible to request the compensation premium through this website. The deadline is June 30, 2020.
3) SUPPORTING PREMIUM
Supporting premium for entrepreneurs with severe losses in turnover
Who?
Entrepreneurs having an establishment or active seat in Flanders, who suffer severe decrease of their turnover due to the more flexible Covid19 measures.
Amount?
The one-time premium amounts to 2.000 EUR or 1.000 EUR for a self-employed person with secondary activity having their revenues between 6.996,89 – 13.993,78 EUR and not employed for 80% or more as an employee.
The payment can be increased for each additional branch that was forced to close down if it has at least 1 full-time employee, registered at the National Social security Office (NSSO). A business having several branches, can apply for a premium for each of the branch, with a maximum of 5 premiums.
Conditions?
- The business (incl. non-profit organizations, Belgian or foreign) has at least 1 FTE employee, registered with the NSSO or, if it is a company with legal personality, at least 1 full-time working partner;
- A self-employed person with primary activity;
- A self-employed person with secondary activity can also benefit from:
- The supporting premium of 2.000 EUR if they pay equal social security contributions as a full time self-employed person (net taxable income of at least 13.993,78 EUR);
- The supporting premium of 1.000 EUR if their revenue is between 6.996,89 – 13.993,78 EUR.
Note that the compensation premium cannot be requested by a self-employed person with secondary activity if they are employed for 80% or more as an employee.
- The business has or could have requested the Flemish disruption or compensation premium (see conditions above);
- The business has suffered a severe decrease of their turnover of 60% or more
- Businesses who were forced to close down due to the Covid19 measures and have reopened on May 11, May 18 or June 8, 2020 have to proof a decrease of 60% or more in their turnover during the first month after reopening in comparison to the same period in 2019.
- Businesses who chose to remain closed voluntary, can only request the supporting premium if they reopened their business on June 29, 2020 at the latest.
- Business who were not forced to close down due to the Covid19 measures but (could) have requested the Flemish compensation premium, have to proof the decrease of 60% or more in their turnover in the period between May 1 -31, 2020 in comparison to the same period in 2019.
- It is possible to compare the decrease in turnover with another reference period in case of an abnormal low turnover in the reference period due to unusual circumstances.
- The business has a Belgian bank account.
The supporting premium cannot be cumulated with:
- A subordinated loan or Gigarant guarantee with PMV as a result of the COVID19 measures.
The following companies are not eligible for the compensation premium:
- Holdings
- Patrimony companies (rental and operation of own or leased non-residential property, excluding land);
- Activities of head offices;
- Management companies of which the manager of the company provides business services to a company that has already received the compensation premium and in which this same person is a director, partner or manager;
- Businesses having outstanding debts at Vlaio due to the wrongful payment of a disruption or compensation premium;
- Non-active businesses on May 1, 2020.
In order to apply for the premium, the entrepreneur has to draft a statement on honour in which he certifies that the conditions are complied with and that the turnover figures have dropped for 60% or more.
Should it appear, later, during an intervention of the authorities (e.g. tax audit), that the conditions were not fulfilled at the moment of the request, the authorities will recall the supporting premium.
How?
An electronic platform has been created in order to request the supporting premium on the website of
VLAIO. The supporting premium can be requested as of mid-July and can be requested until August 15, 2020 at the latest.