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KPMG in Luxembourg

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Supporting and developing the economy and companies of our region has always been in KPMG's DNA. Today and tomorrow, companies will need to equip themselves to confront the economic crisis linked to the COVID-19 epidemic. KPMG has listed the measures and assistance announced by the Luxembourgish authorities to stabilize the economy and support business.

The collection of measures is organized by subject or need that you may face during this period. Please select the profile (SME, large company, freelancer or other) of your business below to view relevant measures.

  • SME

  • Large company

  • Freelance

  • Other

Receive immediate liquidity support

Measures

Objectives

Non-refundable emergency aid. Provides direct aid of EUR€2,500 (non- taxable) to self-employed with fewer than 10 employees.
Capital grant in the form of an advance. Provides financial assistance to cover operating costs of up to EUR€500,000 in a repayable advance.
Full coverage of the salary of a sick employee by the CNS. Payment of the salary of sick employees by the CNS as from their first sick day.
Freezing of loan repayments granted by certain banks. Enables companies to better handle any cash flow difficulties.
Increased flexibility of repayment conditions for SNCI loans and credits. Suspends capital repayments for direct and indirect loans due on 31 March and 30 June. The duration of all funding concerned will be extended by six months.
Early refunding of VAT. Meets liquidity needs by repaying VAT credit balances below EUR€10,000 early.
Payment of an advance on Extraordinary Compassionate Leave Allowance. Advances part of the salary reimbursement that employers must continue to pay to impacted parents.

Receive entrepreneurship support

Measures

Objectives

Increase of the maximum co-funding rate for young innovative companies. Provides up to 70% of co-funding to young innovative companies (less than 5 years old) in need of financing help.
Launch of a call for innovative solutions aimed at fighting Covid-19 (open until April 30th) Grants up to EUR€150,000 to start-ups that develop innovative technological solutions to participate in the fight against the sanitary, economic and social effects of the Covid-19 crisis.

Maintain employment

Measures

Objectives

Provision of partial unemployment benefit due to force majeure. Prevents lay-offs by ensuring the State pays 80% of salaries through an accelerated procedure that enables the payment of advances.
Extension of visas and residence permits for third-country nationals. Provides extensions of visas and of residence permits to third-country nationals until the end of the crisis.
Launch of the staff exchange platform, JobSwitch. Increases the solidarity between companies by allowing companies in need of labour to loan staff and to connect with the unemployed, short-term employed and self-employed.

Maintain activity in an essential sector of the economy

Measures

Objectives

Increase of the maximum working hours. Avoids the lack of labor in essential sectors of the economy by allowing companies to increase the maximum working hours to 12 hours a day and 60 hours a week, with the agreement of the staff delegation.
Declining or cancellation of annual leave. Avoids the lack of labor in essential sectors of the economy by allowing employers to refuse or cancel annual leave.
Increase of the maximum working hours of students. Avoids the lack of labor in essential sectors of the economy by allowing employers to increase the weekly working time of students with a fixed-term contract to 40 hours a week for a 4 week or 1-month period.
Hiring of health professionals by the State for a fixed period. Offers fixed-term contracts with the State to self-employed doctors and health professionals.

Promote working from home

Measures

Objectives

Modified telework taxation for Belgian, French and German cross-border employees. Allows cross-border commuters to work from home during the crisis without being taxed in their country of residence.

Retain liquidity by spreading tax deadline payments

Measures

Objectives

Cancellation of tax advances for the first two quarters of 2020. Cancels tax advances for the first two quarters of 2020.
Postponement of the deadline for the payment of tax installments by four months. Automatically grants an interest-free payment deferral of income tax, municipal business tax and wealth tax.
Deferral of tax return filings. Extends the deadline for the submission of declarations for legal and natural persons to 30 June 2020.
Extension of the filing deadline for VAT returns. Waives administrative penalties for missing the VAT return filing deadline.

Profit from administrative flexibility in paying social security contributions

Measures

Objectives

Increased flexibility for paying social security contributions. Allows administrative flexibility in case of late payment of social security contributions.
Facilitation of the management of social security contributions by the self-employed. Provides measures that allow the self-employed to better manage the payment of their social security contributions.

Receive legal protection

Measures

Objectives

Suspension of the forced execution of evictions ordered for residential and commercial leases. Protects tenants during the crisis if they are unable to pay rent or are in arrears.

Receive specific support for being part of the cultural sector

Measures

Objectives

Support for freelance professional artists, along with seasonal and permanent employees of the cultural sector. Grants additional social support, allowances for canceled projects and partial unemployment measures for employees of this sector.

Receive immediate liquidity support

Measures

Objectives

Non-refundable emergency aid. Provides direct aid of EUR€2,500 (non- taxable) to self-employed with fewer than 10 employees.
Non-refundable financial aid. Provides direct aid of EUR€5,000 to companies with fewer than 10 employees.
Full coverage of the salary of a sick employee by the CNS. Payment of the salary of sick employees by the CNS as from their first sick day.
Capital grant in the form of an advance. Provides financial assistance to cover operating costs of up to EUR€500,000 in a repayable advance.
Freezing of loan repayments granted by certain banks. Enables companies to better handle any cash flow difficulties.
Increased flexibility of repayment conditions for SNCI loans and credits. Suspends capital repayments for direct and indirect loans due on 31 March and 30 June. The duration of all funding concerned will be extended by six months.
Early refunding of VAT. Meets liquidity needs by repaying VAT credit balances below EUR€10,000 early.
Payment of an advance on Extraordinary Compassionate Leave Allowance. Advances part of the salary reimbursement that employers must continue to pay to impacted parents.

Receive support for investing in the fight against Covid-19

Measures

Objectives

Financial aid for the launch of investment or R&D projects to overcome the health crisis Provides co-financing by up to 80% to companies that carry out investments and research projects aimed at producing or developing medical devices, hospital equipment and medical equipment.
Financial aid for production tailored to the fight against the virus Provides investment support to companies that reorient their production towards products that help combat the health crisis.

Receive facilitated access to bank financing

Measures

Objectives

Provision of "SME guarantees" in cooperation with banks active in corporate financing. Allows SMEs to receive guarantees to extend credit lines via the applicant companies’ banks.
State-guaranteed scheme for new bank credits for SMEs and large companies for up to six years. Provides new bank credit lines that the State guarantees up to 85% for a total amount of EUR€2.5 billion.
Financing over five years in favor of “La mutualité des P.M.E.” and “La mutualité de cautionnement”. Expands the guarantees provided to SMEs.
Provision of "Special Anti-Crisis Financing — SACF" via SNCI. Covers financing needs via indirect loans from EUR€12,500 to EUR€16 million.

Maintain employment

Measures

Objectives

Provision of partial unemployment benefit due to force majeure. Prevents lay-offs by ensuring the State pays 80% of salaries through an accelerated procedure that enables the payment of advances.
Extension of visas and residence permits for third-country nationals Provides extensions of visas and of residence permits to third-country nationals until the end of the crisis
Launch of the staff exchange platform, JobSwitch Increases the solidarity between companies by allowing companies in need of labour to loan staff and to connect with the unemployed, short-term employed and self-employed

Maintain activity in an essential sector of the economy

Measures

Objectives

Increase of the maximum working hours Avoids the lack of labor in essential sectors of the economy by allowing companies to increase the maximum working hours to 12 hours a day and 60 hours a week, with the agreement of the staff delegation
Declining or cancellation of annual leave Avoids the lack of labor in essential sectors of the economy by allowing employers to refuse or cancel annual leave
Increase of the maximum working hours of students Avoids the lack of labor in essential sectors of the economy by allowing employers to increase the weekly working time of students with a fixed-term contract to 40 hours a week for a 4 weeks or 1-month period.

Promote working from home

Measures

Objectives

Modified telework taxation for Belgian, French and German cross-border employees. Allows cross-border commuters to work from home during the crisis without being taxed in their country of residence.
Aid for investments in working from home systems Provides financial support to companies that invest in the development of IT infrastructure and systems that enable working from home.

Retain liquidity by spreading tax deadline payments

Measures

Objectives

Cancellation of tax advances for the first two quarters of 2020. Cancels tax advances for the first two quarters of 2020.
Postponement of the deadline for the payment of tax installments by four months. Automatically grants an interest-free payment deferral of income tax, municipal business tax and wealth tax.
Deferral of tax return filings. Extends the deadline for the submission of declarations for legal and natural persons to 30 June 2020.
Extension of the filing deadline for VAT returns. Waives administrative penalties for missing the VAT return filing deadline.

Profit from administrative flexibility in paying social security contributions

Measures

Objectives

Increased flexibility for paying social security contributions. Allows administrative flexibility in case of late payment of social security contributions.

Benefit from export measures

Measures

Objectives

Strengthening of export and international development assistance measures. Increases support for companies that export and prospect internationally, including to markets affected by the coronavirus.

Receive legal protection

Measures

Objectives

Suspension of the obligation to make a declaration of insolvency leading to bankruptcy. Exempts companies from having to make a declaration of bankruptcy when they do not have sufficient liquid assets.
Suspension of the forced execution of evictions ordered for residential and commercial leases. Protects tenants during the crisis if they are unable to pay rent or are in arrears.

Receive immediate liquidity support

Measures

Objectives

Capital grant in the form of an advance. Provides financial assistance to cover operating costs of up to EUR€500,000 in a repayable advance.
Full coverage of the salary of a sick employee by the CNS. Payment of the salary of sick employees by the CNS as from their first sick day.
Freezing of loan repayments granted by certain banks. Enables companies to better handle any cash flow difficulties.
Increased flexibility of repayment conditions for SNCI loans and credits. Suspends capital repayments for direct and indirect loans due on 31 March and 30 June. The duration of all funding concerned will be extended by six months.
Payment of an advance on Extraordinary Compassionate Leave Allowance. Advances part of the salary reimbursement that employers must continue to pay to impacted parents.

Receive support for investing in the fight against Covid-19

Measures

Objectives

Financial aid for the launch of investment or R&D projects to overcome the health crisis Provides co-financing by up to 80% to companies that carry out investments and research projects aimed at producing or developing medical devices, hospital equipment and medical equipment.

Receive facilitated access to bank financing

Measures

Objectives

State-guaranteed scheme for new bank credits for SMEs and large companies for up to six years. Provides new bank credit lines that the State guarantees up to 85% for a total amount of EUR€2.5 billion.
Financing over five years in favor of “La mutualité des P.M.E.” and “La mutualité de cautionnement”. Expands the guarantees provided to SMEs.
Provision of "Special Anti-Crisis Financing — SACF" via SNCI. Covers financing needs via indirect loans from EUR€12,500 to EUR€16 million.

Maintain employment

Measures

Objectives

Provision of partial unemployment benefit due to force majeure. Prevents lay-offs by ensuring the State pays 80% of salaries through an accelerated procedure that enables the payment of advances.
Extension of visas and residence permits for third-country nationals Provides extensions of visas and of residence permits to third-country nationals until the end of the crisis
Launch of the staff exchange platform, JobSwitch Increases the solidarity between companies by allowing companies in need of labour to loan staff and to connect with the unemployed, short-term employed and self-employed

Maintain activity in an essential sector of the economy

Measures

Objectives

Increase of the maximum working hours Avoids the lack of labor in essential sectors of the economy by allowing companies to increase the maximum working hours to 12 hours a day and 60 hours a week, with the agreement of the staff delegation
Declining or cancellation of annual leave Avoids the lack of labor in essential sectors of the economy by allowing employers to refuse or cancel annual leave
Increase of the maximum working hours of students Avoids the lack of labor in essential sectors of the economy by allowing employers to increase the weekly working time of students with a fixed-term contract to 40 hours a week for a 4 weeks or 1-month period.

Promote working from home

Measures

Objectives

Modified telework taxation for Belgian, French and German cross-border employees. Allows cross-border commuters to work from home during the crisis without being taxed in their country of residence.

Retain liquidity by spreading tax deadline payments

Measures

Objectives

Cancellation of tax advances for the first two quarters of 2020. Cancels tax advances for the first two quarters of 2020.
Postponement of the deadline for the payment of tax installments by four months. Automatically grants an interest-free payment deferral of income tax, municipal business tax and wealth tax.
Deferral of tax return filings. Extends the deadline for the submission of declarations for legal and natural persons to 30 June 2020.
Extension of the filing deadline for VAT returns. Waives administrative penalties for missing the VAT return filing deadline.

Profit from administrative flexibility in paying social security contributions

Measures

Objectives

Increased flexibility for paying social security contributions. Allows administrative flexibility in case of late payment of social security contributions.

Benefit from export measures

Measures

Objectives

Strengthening of export and international development assistance measures. Increases support for companies that export and prospect internationally, including to markets affected by the coronavirus.

Maintain employment

Measures

Objectives

Provision of partial unemployment benefit due to force majeure. Prevents lay-offs by ensuring the State pays 80% of salaries through an accelerated procedure that enables the payment of advances.
Increase of the standard abatement rate for domestic, aid and care costs due to dependency and child care costs Allows taxpayers who employed a housekeeper for domestic work in their home from April to December 2020, to benefit from an abatement of €6,750 for the tax year 2020

Retain liquidity by spreading tax deadline payments

Measures

Objectives

Deferral of tax return filings. Extends the deadline for the submission of declarations for legal and natural persons to 30 June 2020.

Benefit from export measures

Measures

Objectives

Strengthening of export and international development assistance measures. Increases support for companies that export and prospect internationally, including to markets affected by the coronavirus.

Receive specific support for being part of the cultural sector

Measures

Objectives

Support for freelance professional artists, along with seasonal and permanent employees of the cultural sector. Grants additional social support, allowances for canceled projects and partial unemployment measures for employees of this sector.

Further resources

  • You can find a factsheet with further details on these measures here.
  • You can find a range resources and application forms here.
  • You can apply for the EUR€5,000 aid for small businesses here.