Coronavirus: Corona compensation premium

In order to prevent the spread of the coronavirus, the federal government has taken a number of measures that significantly affect a large number of companies. In order to respond to this, the Flemish Government provides for a compensation premium for companies that experience an important loss of turnover as a result of the corona crisis.

For whom?

Companies and self-employed persons who had to close down as a result of the corona measures, can already make use of the corona nuisance premium (cfr infoflash on the Flemish nuisance premium).

Companies and their suppliers that are still working or businesses that remain open but suffer a large loss of turnover as a result of the measures are eligible for a compensation premium from the Flemish government.

This measure applies only to the following categories:

1. the event sector and the other companies indirectly affected by the closures and cancellations resulting from the coronavirus measures;
2. the (para)medical professions and technical control centres which, as a result of the coronavirus measures, can only carry out urgent interventions;
3. the service providers who, as a result of the coronavirus measures, can only carry out urgent interventions or where certain work sites are closed down;
4. companies providing essential services;
5. companies affected by substantial operating restrictions as a result of the application of the coronavirus measures.

For the first 4 categories, a list of sectors is included as an annex to the Decree of the Flemish Government. Companies subject to substantial operating restrictions (category 5) must provide detailed reasons for the drop in turnover.

The following companies are not concerned:

• companies in a state of dissolution, cessation of activity, bankruptcy or liquidation are not eligible for the flat-rate subsidy;
• holding companies;
• patrimonial companies;
• activities of head offices;
• management companies whose manager is linked as a director, partner or manager to another company that has received a flat-rate subsidy.

Conditions

• The loss of turnover is at least 60% compared to the same period last year. The reference period is 14 March 2020 to 30 April 2020.
  • The condition of the drop in turnover does not apply to self-employed persons in a secondary occupation who are obliged to close down.
• For start-ups, a drop in turnover of -60% compared to the financial plan laid down is assumed.
• There is a maximum of 5 premiums per company if there is more than one place of business per company;
• Self-employed persons in a secondary occupation:
  • who had a professional income of at least €13,999 in 2019 are treated as self-employed persons in a main occupation and can receive the compensation premium of €3,000;
  • 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 it does not apply to self-employed persons in a secondary occupation who combine this with a salaried occupation of 80% or more (is treated as a self-employed person in a secondary occupation: the self-employed person who in 2019 had a professional income between €6,996.89 and €13,993.78 and who does not have a salaried occupation of 80% or more).
• For assocations engaged in an economic activity, the compensation premium is also possible, provided that at least one person is employed full-time.
• The corona compensation premium cannot be combined with the corona nuisance premium.

How much?

The one-off compensation premium amounts to €3,000. For some self-employed persons in a secondary occupation the premium amounts to €1,500 (see 'Conditions').

How to apply?

The compensation premium can be applied for via an application at VLAIO. At the moment it is not yet known when this will be possible.

Companies can apply for this aid until 30 June 2020.

More information

Source:

• https://www.vlaanderen.be/corona-compensatiepremie
• https://www.vlaio.be/nl/nieuws/corona-compensatiepremie-voor-ondernemers-met-zwaar-omzetverlies
• Decree of the Flemish Government granting support to companies experiencing a drop in turnover due to the operating restrictions imposed by the measures of the National Security Council of 12 March 2020 in relation to the coronavirus (Decisions of the Flemish Government of 10 April 2020).