7.6 billion euro for extension of support package for entrepreneurs

The support package for jobs and the economy is being substantially expanded. The Cabinet has allocated EUR 7.6 billion to increase the support package in the first and second quarter of 2021.

Half of the amount is intended for the extension of the Fixed Charges concession (TVL), which compensates entrepreneurs who suffer at least 30% loss of turnover, a large proportion of their fixed expenses. More companies will now be entitled to this aid and the maximum remuneration will rise from 70% to 85% of the fixed costs.

The requirement of up to 250 employees is released. This means that larger companies can also claim the TVL. The maximum amount of subsidy will also be increased from 90,000 to 330,000 euros for small and medium-sized enterprises and to 400,000 for non-SMEs.

The minimum subsidy amount for small entrepreneurs such as hairdressers and pedicures increases from 750 to 1500 euros and is examined whether more smaller companies can claim the TVL.

Separate scheme for starters

The retail stock fee will be extended and increased and there will be a separate scheme for start-ups who started business between 1 January and 30 June 2020. Starters have often been out of the boat so far, because a lot of support is based on figures from before March last year, for the coronacrisis. Companies which did not exist at that time or had not made turnover were therefore not eligible for aid.

The NOW subsidy for wage payments goes up from 80 percent to 85 percent of the wage bill. In the case of the Tozo, income support for self-employed workers, the planned capital test, which would apply from April, is not introduced.

The period during which entrepreneurs can apply for tax deferral or extension of deferral is extended and, together with creditors and debt providers, a more flexible look at the targeted write-off of (tax) debts if a repayment scheme is not sufficient.

Guarantee Fund for Events

There will also be a guarantee fund for events, so that organisers can start planning and setting up festivals, for example, from a time when this is justified. It is now thought of 1 July. The cabinet is still working out the precise interpretation. A minimum of EUR 300 million has been earmarked for it.

Aid measures for amateur sport and the temporary coronare scheme for students will be extended until August. Students who are delayed by the corona measures receive an allowance in the cost of study and students whose basic and/or supplementary scholarship expires receive a financial allowance.

In view of the possibility that we will continue to work more at home in the future, the cabinet is examining the design of tax measures that allow employers to reimburse their home work costs. It looks at the coherence with existing travel expenses.