The Swiss government on 13 January 2021 imposed stricter measures to curb the spread of the coronavirus (COVID-19) virus, and at the same time, increased its “hardship compensation” fund for the hardest hit sectors of the economy.
The funds will be provided jointly by the Swiss Federation and the cantons.
The Swiss Federal Council relaxed the conditions that a company must meet in order to receive hardship aid.
In addition to these contributions, loans and guarantees with a maximum duration of 10 years may be granted and can amount to a maximum of 25% of average annual revenues generated in 2018 and 2019, but may not exceed the amount of CHF 10 million per legal entity.
This regulatory amendment allows cases of hardship to be supported broadly. More than half of the cantons are already starting to accept applications for hardship benefits during January and all cantons are expected to pay out support by February 2021.
To be eligible for financial support, the following requirements must be met—the company had to be incorporated before 1 March 2020, had minimum revenue of CHF 50,000, its salary expenses were primarily within Switzerland, and it is able to show documentation and evidence (such as annual financial statements and monthly financial reporting).
Furthermore, the decrease in revenue during the last 12 months needs to be at least 40% or the government-ordered shutdown needs to be at least 40 calendars days since 1 November 2020.
Read a January 2021 report prepared by the KPMG member firm in Switzerland
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.