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Covid-19 – Summary of Measures Luxembourg
Summary of measures for SMEs in Luxembourg related to COVID-19
1. Meeting liquidity needs
| Emergency allowance in the amount of 2.500 € for the self-employed | Grant self-employed people with less than 10 employees a non-refundable and nontaxable support of 2.500 € |
| Additional financial aid for the self-employed based on their income | Grant self-employed people (regardless of the number of their employees) a direct aid in the amount of EUR 3.000 ; 3.500 or 4.000 depending on the income level of the person concerned |
| Financial aid of 5.000 € for micro-businesses forced to close down pursuant to a Government decision | Grant direct aid in the amount of 5.000 € to companies with less than 10 employees, forced to cease their operations as a result of the amended regulation of 18 March 2020 |
| Additional financial aid of 5.000 € for microbusinesses (employing less than 10 people) | Grant an additional direct aid in the amount of 5.000 € to companies with ≤ 9 employees |
| Financial aid of 12.500 € for businesses employing between 10 and 20 people | Grant a direct aid of 12.500 € to businesses (between 10 and 20 staff) |
| Capital grant advances | Grant financial aid of up to 500.000 € in the form of a repayable advance to cover operating costs |
| Advance refund of VAT | Meet liquidity needs through an early repayment of VAT credit balances below 10.000 € |
| Payment of an advance on extraordinary family leave | Advance partial reimbursement of salaries that employers must continue to pay to the parents concerned |
| “Special Anti-Crisis SME Guarantee” in cooperation with banks active in corporate financing | Provide guarantees for obtaining new working capital lines from banks |
2. Promoting Telework
| Amended taxation of telework for Belgian, French and German cross-border commuters | Allow cross-border commuters to work from home during the crisis without being taxed in their country of origin |
3. Defer payments linked to tax deadlines
| Cancellation of tax advances for the first two quarters of 2020 | Automatically grant a cancellation of tax advances for the first 2 quarters of 2020. This concerns income tax (of firms) and municipal business tax |
| 4 month deferral for the payment of tax instalments | Request a deferral of payment (without interest) of income tax, municipal business tax and wealth tax |
| Deferral of tax return filings | Set the deadline for the submission of tax returns for legal and natural persons at 30 June 2020 |
| Extension of the filing deadline for VAT returns | Waive administrative penalties if the deadline for filing VAT returns, subscription tax, inheritance declarations and notarial and bailiff’s deeds is exceeded |
4. Administrative tolerance for social security contributions
| Increased flexibility in the payment of social security contributions | Provide flexibility to companies in cash management and payment of social security contributions, e.g. by temporarily suspending the calculation of default interest for late payments |
UPDATED VERSION OF 8 MAY 2020
If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Bernard Zimmer at bernard.zimmer@ibspartners.lu.
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