Jurisdiction |
Name of Scheme |
Scheme type |
Canada |
$50 million support for Montréal’s small businesses
The Government of Canada aims to grant up to $30 million to the PME MTL network through the Regional Relief and Recovery Fund (RRRF), aimed at Montréal businesses ineligible for other federal measures. Additionally, the Government of Québec aims at contributing $20 million more for the Ville de Montréal under the Aide d’urgence aux petites et moyennes entreprises program to come to the assistance of metropolis SMEs facing financial hardship.
|
Fund |
|
ACOA investments for young entrepreneurs
The Government of Canada, through the Atlantic Canada Opportunities Agency (ACOA), is allocating more than $5.2 million in non-repayable contributions to help Atlantic Canadian organizations that support young entrepreneurs. This will help ensure that Atlantic Canadian youth have the tools and resources needed to play an active role in the recovery, rebuilding and re-energizing of the region’s economy. |
Fund |
|
Additional income support
There has been an additional $270 million to supplement the On-Reserve Income Assistance Program, which will help individuals and families meet their essential living expenses. |
Fund |
|
Agriculture and Food Business Solutions Fund
Farm Credit Canada launched a $100-million venture capital fund to support viable companies called the Agriculture and Food Business Solutions Fund. |
|
|
Bankers’ Acceptance Purchase Facility
A new Banker’s Acceptance Purchase Facility will support a funding market for small and medium-sized businesses.
|
Funds |
|
Bank’s COVID-19 Pandemic Response for businesses
The Bank of Canada’s initiatives have taken measures for reinforcing economic recovery bridge. These programs include: Short-term funding markets for banks so that they can continue to serve businesses and individuals. This includes term repo operations conducted against a wide range of high-quality collateral for terms of up to two years. There’s also a Standing Term Liquidity Facility open to a broader set of financial institutions to serve households and businesses.
The Bank has temporarily increased take-up of T-bill auctions from a maximum of 25% to 40%. There are increased demands for cash from fiscal actions taken to support the economy.
To serve businesses, banks are implementing programs to buy a wider range of bonds in the secondary market. They are committed to buy up to $50 billion in provincial debt across all provinces and up to $10 billion in high-quality Canadian-dollar corporate debt.
|
Bank support |
|
Benefit increase For Saskatchewan producers
The federal and provincial governments have agreed to increase the 2020 AgriStability interim benefit payment percentage from 50% to 75% for Saskatchewan producers.
|
Grants |
|
British Columbia transit services
The government announced $2 billion in federal funding for cities and towns across Canada. The funding will support front-line workers and critical municipal services. It has also agreed to match up to $1.8 billion of provincial and territorial funding to support local public transit.
|
Fund |
|
Business Credit Availability Program (BCAP)
The government has established a Business Credit Availability Program (BCAP) to provide $65 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exportation and tourism. The commercial support, developed by BDC in partnership with financial institutions, is intended to help Canadian businesses that may obtain incremental credit amounts up to $6.25 million, 80% of which would be provided by BDC, with the remaining 20% from their financial institution. |
Credit |
|
Canada Emergency Business Account for farmers
A four-week hotline service called the Business Resilience Service will help entrepreneurs and small business owners in need of financial planning advice, and supports them to retain their employees, keep their costs low and pay their operating expenses. |
Financial advice |
|
Canada Emergency Business Account for farmers
The Canadian Emergency Business Account has potential to provide up to $670 million directly to farmers from the forgivable portion of Canadian Emergency Business Account interest-free loans. Farmers without payroll can now access the $40,000 interest-free loan available under CEBA – up to $10,000 of which is forgiven if the rest is repaid by December 31, 2022. |
Loans |
|
Canada Emergency Commercial Rent Assistance
The Canada Emergency Commercial Rent Assistance for small businesses, which will provide a forgivable loan to qualifying commercial property owners, who in turn give a rent reduction of at least 75% for April and May (retroactive) and June, to impacted small business tenants who have experienced at least a 70% drop in pre-COVID-19 revenues. The application process for these loans opened on May 25. |
Loan |
|
Canada Emergency Response Benefit
A taxable benefit of $2,000 a month for up to 4 months will be provided to: workers who must stop working due to COVID-19 and do not have access to paid leave or other income support; workers who are sick, quarantined, or taking care of someone who is sick with COVID-19; working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures; workers who still have jobs but are not being paid; and wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance.
|
Financial support |
|
Canada Emergency Wage Subsidy
The legislation introduced includes additional flexibilities that would provide effective support to eligible employers. The proposed CEWS would apply at a rate of 75% of the first $58,700 earned by employees – representing a benefit of up to $847 per week, per employee. Employers of all sizes and across all sectors of the economy would be eligible, with certain exceptions including public sector entities. The government announced the extension of the program for an additional 3 months to August 29, 2020.
|
Payroll |
|
Child care support for returning workers
The government announced $625 million in federal support for Canada’s child care to support parents’ gradual return to work. Along with the agreements under the Multilateral Early Learning and Child Care Framework, this investment means the Government of Canada will invest almost $1.2 billion to support child care in 2020-2021.
|
Fund |
|
COVID-19 Resilience fund
The government aims at adapting its infrastructure program to make it easier to invest in making schools safer for children and long-term care facilities safer for aging people. The federal government will pay 80% of the cost for projects that have a value of less than $10 million and can be completed by the end of 2021. Projects in the Territories are eligible for 100% federal funding, and have an extra year to be completed. The Government of Canada will also cost-match more than $1.8 billion to support any additional provincial/territorial contributions made for public transit.
|
Fund |
|
Credit and loan support for businesses
The Business Development Bank of Canada (BDC) and Export Development Canada (EDC) is offering support for businesses. EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to Small and Medium-Sized Enterprises. BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program.
The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.
The Government of Canada is expanding the Canada Emergency Business Account (CEBA) to businesses that paid between $20,000 and $1.5 million in total payroll in 2019. The Canada Emergency Commercial Rent Assistance (CECRA) for small business is likely to lower rent by 75% for small businesses. The program will seek to provide loans, including forgivable loans, to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May, and June. The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments.
|
Credit, Loans |
|
Emergency COVID-19 funds
An agreement has been reached between the Governments of Canada and Québec that will provide funding directly to the province to distribute to organizations throughout Québec. The $2.3 million that will be transferred to the province is in addition to the previously announced $40 million, which included $6.46 million in dedicated funding for women’s shelters and sexual assault centres in Québec. |
Measures |
|
Emergency Funding for COVID-19 Safety Measures in Forest Operations
The federal government plans to provide up to $30 million for small and medium enterprises in the forest sector, including tree-planting operations. The government intends to work with the provinces and territories to deliver this funding, which will preserve jobs for forest sector workers, including approximately 7,000 tree planters this year.
|
Fund |
|
Employment insurance
Service Canada is waiving the one-week waiting period to claim Employment Insurance (EI) sickness benefits and waiving the requirement to provide a medical certificate to access EI sickness benefits.
They have introduced the Emergency Care Benefit providing up to $900 bi-weekly, for up to 15 weeks. This flat-payment Benefit would be administered through the Canada Revenue Agency (CRA) and provide income support to: Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits, and workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not quality for EI sickness benefits.
|
Payroll |
|
Essential Worker Retention Incentive Program
The government introduced an Essential Worker Retention Incentive Program, which will provide a $100-a-week benefit for low-income earners working full-time or part-time in essential services.
|
Finance support |
|
Expanded access to Canada Emergency Response Benefit
Aims at providing a taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost income or stopped working.
|
Bonds |
|
Expansion of Bond buyback program
The Bank of Canada will act as a fiscal agent to broaden the scope of the Government of Canada bond buyback program adding market liquidity and supporting price discovery.
|
Bonds |
|
Expansion of Business Credit Availability program
The program now includes mid-sized companies with larger financing needs. Support for mid-market businesses will include loans of up to $60 million per company, and guarantees of up to $80 million. Through the BCAP, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will work with private sector lenders to support access to capital for Canadian businesses in all sectors and regions.
|
Credit |
|
Extension for tax payment deadline
The Canada Revenue Agency (CRA) is extending the payment due date for current year individual, corporate, and trust income tax returns, including instalment payments, from 1 September 2020, to 30 September 2020. Penalties and interest will not be charged if payments are made by the extended deadline of 30 September 2020. This includes the late-filing penalty as long as the return is filed by 30 September 2020.
|
Measures |
|
Extension of Rent Relief Program for small businesses
The government announced that the Canada Emergency Commercial Rent Assistance (CECRA) will be extended by one month to cover eligible small business rents for July.
|
Rent Relief |
|
Expansion of support for workers and small businesses
Canadian small businesses can access interest free loans that will help cover operating costs. The program will now be available to sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll.
|
Loans |
|
Extension for filing of Alberta Corporate Income Tax Returns
The Government of Alberta recently announced that the filing deadlines for Alberta Corporate Income Tax Returns (AT1) have been extended to: June 1, 2020 for AT1 returns due after March 18, 2020 and before June 1, 2020 and September 1, 2020 for AT1 returns due in June, July or August 2020. |
Accounting and Tax |
|
Extension of tax deadline in Quebec
Revenu Québec announced that the deadline for filing the tax return of some companies is postponed to 1 September 2020. |
Income Tax |
|
Extension of the Canada Emergency Response Benefit
The government extended the Canada Emergency Response Benefit (CERB) by eight weeks. This extension will make the benefit available to eligible workers for up to a total of 24 weeks.
|
Extension of Emergency
Response Benefit
|
|
Extension to recall employees
For employees laid off prior to March 31, 2020, the time period to recall employees is extended by six months or to December 30, 2020, whichever occurs first.
For employees laid off between March 31, 2020, and September 30, 2020, the time period is extended until December 30, 2020, unless a later recall date was provided in a written notice at the time of the layoff.
|
Temporarily extension |
|
Film and Media Tax Credits Program
The Canada Revenue Agency will support programs like the Film and Media Tax Credits (FMTC) to ensure that businesses receive their credits as soon as possible. For the time being, no new audits will be started and some of its existing audits will be completed as soon as possible so that businesses have access to their credits faster. Claims accepted at this time may be subject to audit at a future date.
|
Accounting and Tax |
|
Flexibility for businesses filing taxes
The deadline to pay off any outstanding balances interest-free will be extended to August 31, 2020. This applies to individual, trusts and corporations. This relief would apply to tax balances due as well as instalments.
The Canada Revenue Agency (CRA) will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the CRA will temporarily suspend audit interaction with taxpayers and representatives.
|
Accounting and Tax |
|
Green jobs in the natural resources sectors
The government announced $15.8 million to create green jobs and training opportunities for Canadian youth in the fields of science, technology, engineering and math (STEM) in the energy, forestry, mining, earth sciences and clean technology sectors.
|
Fund |
|
GST/HST payments and remittances
Allow businesses to defer GST/HST and customs duty payments until June 30, 2020. Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.
|
Accounting and Tax |
|
Income support for workers
For Canadians without paid sick leave (or similar workplace accommodation) who are sick, quarantined or forced to stay home to care for children, the Government is:
- Waiving the one-week waiting period to claim Employment Insurance (EI) sickness benefits.
- Introducing the Emergency Care Benefit providing up to $900 bi-weekly, for up to 15 weeks
For Canadians who lose their jobs or face reduced hours, owing to COVID-19, the government is:
- Introducing an Emergency Support Benefit delivered through the CRA to provide up to $5.0 billion in support to workers who are not eligible for EI and who are facing unemployment
- Implementing the EI Work Sharing Program, which provides EI benefits to workers who agree to reduce their normal working hour as a result of developments beyond the control of their employers, by extending the eligibility of such agreements to 76 weeks, easing eligibility requirements, and streamlining the application process.
Service Canada is waiving the one-week waiting period to claim Employment Insurance (EI) sickness benefits and waiving the requirement to provide a medical certificate to access EI sickness benefits.
They have introduced the Emergency Care Benefit providing up to $900 bi-weekly, for up to 15 weeks. This flat-payment Benefit would be administered through the Canada Revenue Agency (CRA) and provide income support to: Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits, and workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not quality for EI sickness benefits.
|
Payroll |
|
Income tax filing and payment
Businesses can defer, until after August 31, 2020, the payment of income tax amounts that become owing on or after March 18 and before September 2020.
|
Accounting and Tax |
|
Increased Access to EI and recovery benefits
The Government of Canada will transition to a simplified Employment Insurance (EI) program, effective 27 September 2020. This will provide income support to those who remain unable to work and are eligible, and introduce a new suite of temporary and taxable recovery benefits to further support workers.
|
Measures |
|
Increase in wages for essential workers
The Government of Canada will provide up to $3 billion in support to increase the wages of low-income essential workers.
|
|
|
Increasing credit for agriculture, fisheries and aquaculture
The government has enabled Farm Credit Canada to provide an additional $5 billion in lending to producers, agribusinesses, and food processors. This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales. The governments of Canada and Ontario are investing up to $2.5 million to help the agri-food sector to expand online, providing more opportunities for producers to grow their business and offer more food choices for families who are shopping from home.
|
Credit |
|
Innovation support for Quebec businesses
The government announced more than $16 million support for businesses and organizations developing innovative solutions. In addition to investing in innovative businesses, CED works in synergy with Quebec’s business incubators and accelerators. They offer crucial support for young, innovative businesses with high growth potential (start-ups) at all phases of their existence, nurturing talent and innovation.
|
Fund |
|
Investments in microbrewery, cidery and winery tourism
The government of Canada announced $250,000 through the Canadian Experiences Fund (CEF) to help three Central Ontario producers enhance culinary tourism experiences, expand their product offerings and support local jobs.
|
Fund |
|
Investment in roads and bridges
The Government of Canada aims at investing over $22 million to support rural communities in Central and Eastern Ontario through the Rural and Northern Infrastructure Stream (RNIS) of the Investing in Canada infrastructure plan.
|
Investment |
|
Investment support for western Canadian women entrepreneurs
The government of Canada announced $8.3 million through the Regional Relief and Recovery Fund to support the Women’s Enterprise Initiative (WEI) organizations across Western Canada. The Women’s Enterprise Centre in British Columbia, Alberta Women Entrepreneurs, Women Entrepreneurs of Saskatchewan, and the Women’s Enterprise Centre of Manitoba will each receive $2 million in additional loan funds for women entrepreneurs.
|
Fund |
|
Large Employer Emergency Financing Facility
A Large Employer Emergency Financing Facility (LEEFF) provides bridge financing to Canada’s largest employers. The objective is to help protect Canadian jobs, help Canadian businesses weather the current economic downturn, and avoid bankruptcies of otherwise viable firms where possible. Companies seeking support must demonstrate how they intend to preserve employment and maintain investment activities. The program is not available to companies that have been convicted of tax evasion. |
Loan |
|
Lowering the Domestic Stability Buffer requirement
The Domestic Stability Buffer requirement for domestic systemically important banks has been lowered by 1.25% of risk weighted asset. This will increase the lending capacity of Canada’s large banks and support the supply of credit to the economy.
|
Credit |
|
Measures for corporations
The deadline for filing the corporation income tax return has been extended. If the normal deadline falls in the period from 17 March to 30 May 30, the deadline has been extended to 1 June 2020 from 31 May to 31 August 2020, the deadline has been extended to 1 September 2020.
|
Accounting and Tax |
|
Measures for partnerships
Partnerships that would normally file the Partnership Information Return during the period from: 31 May to 31 August 2020, now have until 1 September 2020, to file the return. The extended deadlines also apply to SIFT partnerships.
|
Measures |
|
Mid-Market Financing Program
The government announced the deployment of the Mid-Market Financing Program, part of the Government of Canada’s Business Credit Availability Program (BCAP). The financing is intended to fund operational cashflow needs to ensure business continuity.
|
Finance Program |
|
Mid-Market Financing Program for medium-sized businesses
Canada’s bank for entrepreneurs announced the creation of the Mid-Market Financing Program. The objective of the program is to bring liquidity to medium-sized companies and whose credit needs exceed the limit already available through the federal government’s Business Credit Availability Program (BCAP), as well as other measures previously announced by BDC.
BDC will make additional credit available to complement businesses’ existing debt facilities, working closely with their primary lenders. These commercial loans, which will take the form of a junior loan done jointly with the business’ primary lender, will range in size between $12.5 million and $60 million each.
|
Financial support |
|
Minimum unemployment rate for the Employment Insurance program
The government announced that effective August 9, 2020 a minimum unemployment rate of 13.1% will be applied temporarily for all EI economic regions across Canada. This temporary measure will establish minimum entry requirements for EI eligibility across the country for Canadians to access the income support they need now or might need later.
|
Measures |
|
Mining and logging tax
The deadline for paying mining tax has been extended to 1 September 2020, as it has been for income tax and instalment payments. The deadline for paying logging tax that would normally fall between 17 March 2020 and 31 August 2020, has been extended to 1 September 2020.
|
Accounting and Tax |
|
More business eligibility for Canada Emergency Business Account
More owner-operated small businesses that had been ineligible for the program due to their lack of payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll will become eligible. Eligible businesses will qualify for financing of up to $40,000, with 25% of this being forgivable based on the current terms of CEBA loans.
|
Fund |
|
New extension of the credit for contributions to the health services fund
The government announced that the Employers with an establishment in Québec that qualify for the Canada Emergency Wage Subsidy (CEWS) for a qualifying period can also claim the credit for contributions to the health services fund for the same period. The CEWS was initially granted for a 12-week period but was extended until 29 August 2020. The credit for contributions to the health services fund was also extended until 29 August 2020.
|
Fund |
|
Old Age Security pension
The government aims to offer one-time tax-free payment of $300 for seniors eligible for the Old Age Security (OAS) pension, with an additional $200 for seniors eligible for the Guaranteed Income Supplement (GIS). The government announced that seniors eligible for the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS) will receive their special one-time, tax-free payment of $900 more for single seniors and more than $1,500 for senior couples, on top of their existing benefits.
|
Income payment |
|
People Outside Safely Together (POST) Promise program
The Government of Canada has partnered with the People Outside Safely Together (POST) Promise program, an initiative launched by Canadian private sector organizations to help businesses across the country reopen safely. By displaying the “POST Promise” logo, participating businesses can reassure customers that they are doing their part to help protect Canadians’ health and safety.
|
Voluntary Program |
|
Provincial Bond Purchase Program
This program will supplement the already-implemented Provincial Money Market Purchase Program. The aim of both these programs is to maintain well-functioning provincial funding markets in the face of significant demands for funding as governments implement their emergency measures, and businesses and households seek to bridge this difficult period.
|
Bonds |
|
Regional Relief and Recovery Fund
Regional Relief and Recovery Fund (RRRF) devotes nearly $962 million to help more businesses and organizations in sectors such as manufacturing, technology, tourism and others with targeted assistance delivered by regional development agencies. The $962 million fund comprise of $252.4 million support fund in southern Ontario; $49.5 million for Northern Ontario – FedNor; $304.2 million support fund in Western Canada; $211 million support fund for Quebec; $110 million for Atlantic Canada; and $34.3 million in funding for the territories.
|
Fund |
|
Reimbursement for teleworking supplies
The government announced the total or partial reimbursement, on presentation of supporting documents, of a maximum amount of $500 intended to offset the cost of acquiring personal computer equipment or the office equipment required for teleworking is not a taxable benefit for the employee.
|
Accounting and Tax |
|
Relief for federally regulated pension plan sponsors
The government has been providing immediate, temporary relief to sponsors of federally regulated, defined benefit pension plans in the form of a moratorium, through the remainder of 2020. The relief will help ensure that employers have the financial resources they need to maintain their operations and their pension plans, and to protect the retirement security of their workers and retirees.
|
Grants |
|
Relief measures for registered pension plans and Deferred Salary Leave Plans
The government has proposed to add temporary stop-the-clock rules to the conditions applicable to Deferred Salary Leave Plans.
Regulations are proposed to be amended to temporarily suspend the 90-day limit on borrowing and the prohibition on a borrowing being part of a series of loans or repayments.
Catch-up money purchase contributions will be added to an employee’s pension adjustment for 2020. If an employee is a member of a registered pension plan and is on an “eligible period of reduced pay”, the tax rules permit the plan to recognize full pensionable service for periods of reduced pay as if the periods were regular employment at unreduced pay.
|
Measures |
|
Rent relief for business tenants in all national parks, national historic sites and national marine conservation areas
The Government of Canada is likely to waive up to 75% of eligible commercial rents for the months of April, May and June 2020 or equivalent amounts of annual rents. This relief is additional to measures announced March 27 allowing commercial operators to defer payments normally due on or after April 2, 2020 to as late as September 1, 2020.
|
Rent |
|
Road and bridge infrastructure
The Government is investing more than $9.9 million in road and bridge projects through the Rural and Northern Communities Infrastructure Stream of the Investing in Canada plan. The Government of Ontario is also contributing over $6.6 million; and the municipalities involved are contributing over $17.8 million combined to the projects.
|
Fund |
|
Safe Restart Agreement
The government announced a federal investment of more than $19 billion to help provinces and territories safely restart the economies and make the country more resilient.
|
Fund |
|
Sales tax remittance and customs duty payment deferral
The government is expected to allow businesses, including self-employed individuals, to defer until June 30, 2020 payments of the Goods and Services Tax / Harmonized Sales Tax (GST/HST), as well as customs duties owed on imports.
|
Accounting and Tax |
|
Seafood Stabilization Fund
The government announced $62.5 million of new assistance to the fish and seafood processing sector. This new Canadian Seafood Stabilization Fund will help businesses: access short-term financing to pay for maintenance and inventory costs; add storage capacity for unsold product; comply with new health and safety measures for workers; support new manufacturing/automated technologies to improve productivity and quality of finished seafood products; and, adapt products to respond to changing requirements and new market demands.
|
Fund |
|
Steps to Protect Agri-Food Workers
The governments of Canada and Ontario are investing $2.25 million in provincially licensed meat processing plants to better protect employees and ensure the continued supply of healthy products for consumers.
|
Financial support |
|
Support businesses with digital technologies
The Government of Canada is investing $50 million towards helping businesses across the region adopt digital technologies.
|
Digital |
|
Support Indigenous businesses and the Indigenous tourism industry
The government announced additional funding totaling $133 million in new funding to support Indigenous business. Of these additional funds, $117 million will reach more community-owned First Nation, Inuit and Métis businesses including microbusinesses. It also announced a new stimulus development fund that will provide $16 million to support the Indigenous tourism industry.
|
Fund |
|
Support for agriculture, seafood, and food processing businesses in British Columbia
Agriculture, seafood, and food processing businesses in British Columbia can access consulting and planning services and funding. The funding available includes up to $5,000 in business planning services and coaching for individuals, and up to $20,000 for groups, from a qualified business consultant, to develop an immediate and long-term recovery plan.
|
Grants |
|
Support for air transportation sector
The Canadian government is waiving ground lease rents from March 2020 through to December 2020 for the 21 airport authorities that pay rent to the federal government. The government will also provide comparable treatment for PortsToronto, which operates Billy Bishop Toronto City Airport and pays a charge to the federal government.
|
Financial support |
|
Support for British Columbia’s technology sector
The government announced $2,950,000 in federal support to help businesses in BC's technology sector. This funding will benefit up to 2,500 innovative companies and support as many as 1,000 jobs.
|
Fund |
|
Support for business in territories
The government is making available $15 million in non-repayable support for businesses in the territories. This support will assist businesses with operating costs not already covered by other Government of Canada measures.
|
Financial support |
|
Support for Canada’s forest sector
Support includes: investments in Forest Industry Transformation (IFIT) where it is likely to invest $83 million to bridge the gap between new product development and commercialization and ensure a more competitive and resilient forest sector. The Indigenous Forestry Initiative (IFI) aims to invest $13 million to support Indigenous participation in forestry-related opportunities, businesses, careers and governance.
|
Fund |
|
Support for Canadians through the next phase of the recovery
The government announced changes to the Employment Insurance (EI) program and new income support benefits. They also announced that in preparation for this transition and to ensure support continues for Canadians whose employment has been impacted by the pandemic, the Canada Emergency Response Benefit (CERB) will be extended by an additional four weeks to a maximum of 28 weeks.
|
Measures |
|
Support for cultural and heritage organizations
The government allocated $25.7 million in new funding for national museums and the National Battlefields Commission. It also confirmed the implementation of the first component of Phase 2 of the COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations, launched in May 2020.
|
Fund |
|
Support for early stage businesses
The government aims at investing $250 million to assist innovative, early-stage companies that are unable to access other COVID-19 business supports through the Industrial Research Assistance Program (IRAP). IRAP offers advice, connections, and funding to help Canadian small and medium-sized businesses increase their innovation capacity and take ideas to market.
|
Financial support |
|
Support for farmers, food businesses, and food supply
The Government of Canada announced additional investment of more than $252 million to support farmers, food businesses, and food processors with a $77.5 million Emergency Processing Fund to help food producers. They have launched national AgriRecovery initiatives of up to $125 million in funding and a Surplus Food Purchase Program with an initial $50 million fund designed to help redistribute existing and unsold inventories.
|
Financial support |
|
Support for fish harvesters
The government announced up to $469.4 million in new measures to support Canada’s fish harvesters, who are economically impacted by the pandemic but cannot access existing federal measures. This investment includes $62.5 million for the new Canadian Seafood Stabilization Fund to help Canada’s fish and seafood processing sector.
|
Financial support |
|
Support for investments in infrastructure in rural and northern Ontario
The Government of Canada announced to invest over $23 million in roads and bridges for rural communities in Northern Ontario through the Rural and Northern Communities Infrastructure Stream.
|
Investment |
|
Support for investment in public transit infrastructure for Peterborough residents
The Government of Canada announced to invest over $5.8 million in public transit infrastructure . The Government of Ontario announced to provide more than $4.76 million to the projects, while the City of Peterborough aims to contribute more than $3.67 million and the County of Peterborough with over $18,000.
|
Investment |
|
Support for manufacturing businesses
The government announced $21M in investments to help manufacturing businesses to adopt new technologies.
|
Fund |
|
Support for medium-sized businesses
BDC, Canada’s bank for entrepreneurs, announced the deployment of the Mid-Market Financing Program, part of the Government of Canada’s Business Credit Availability Program (BCAP). The financing builds on the federal government’s previous economic support programs and is intended to fund operational cashflow needs to ensure business continuity.
|
Measures |
|
Support for Quebec businesses and organizations
$71.3 million has been granted to the Réseau des SADC et CAE to support businesses and organizations located in Quebec’s rural communities.
|
Fund |
|
Support to oil and gas sector companies
The Government of Canada, through BDC, Canada’s bank for entrepreneurs, and Export Development Canada (EDC) announced higher risk financing for Canada’s oil and gas sector, to strengthen companies’ financial position and complement financing available from EDC and other financial institutions.
These commercial loans, ranging in size between $15 million and $60 million each, are expected to be used to fund operational cashflow needs for a 12-month period which in turn will ensure a degree of continuity of operations.
|
Financial support |
|
Support for Quebec tourism sector
Financial assistance totaling over $30 million has been allocated for Quebec.
|
Financial assistance |
|
Support for rural business
The government aims to provide $287 million to support rural businesses and communities by offering needed access to capital through the Community Futures Network.
|
Financial support |
|
Support for SMEs
$675 million will be provided for financing support to small and medium-sized businesses that are unable to access other COVID-19 business supports, through Canada's Regional Development Agencies. The government also provides Small and Medium-sized Enterprise Loan and Guarantee program that will enable up to $40 billion in lending by providing businesses with access to flexible term loans of up to $12.5 million to help cover immediate, operational cash-flow requirements.
|
Financial support |
|
Support for temporary foreign workers
The federal departments involved in the Temporary Foreign Worker program worked together to simplify processes and facilitate as much as possible the safe entry of these workers, including priority processing of applications, highlighting that work permit applicants can continue working with the same employer while they have an extension application being processed, and the measures announced to fast-track approval for workers in non-SAWP streams to change jobs or employers.
|
HR |
|
Support for tourism sector in South Ontario
The Government of Canada aims at investing $30 million to support destination marketing organizations across the region. |
Fund |
|
Support for tourism sector in North Ontario
The Government of Canada invested $7.6 million to support communities, businesses and organizations in Northern Ontario to help create jobs, spur growth and support the tourism industry. |
Fund |
|
Support for women entrepreneurs
The Government of Canada will provide $15 million in additional funding to support women entrepreneurs through the Women Entrepreneurship Strategy (WES). This investment includes federal support to help small business owners retain their employees and keep up with their operating costs. This includes the 75% wage subsidy, lending supports, help with commercial rent and deferred tax payments, as well as dedicated funding for innovators, entrepreneurs in rural and northern communities and Indigenous-owned businesses.
|
Funds |
|
Support for women entrepreneurs in Southern Ontario
The government announced a $281,600 investment as part of the government’s recent top-up of $15 million to Canada’s first-ever Women Entrepreneurship Strategy’s Ecosystem Fund. ELLA Ascend will soon launch a new initiative called the Fractional Executive Program. Through this new program, a cohort of 10 entrepreneurs and advanced ELLA participants will benefit from mentorship and coaching support to help them address challenges associated with scaling globally.
|
Fund |
|
Support for young entrepreneurs
The government aims to provide $20.1 million in support for Futurpreneur Canada to continue supporting young entrepreneurs. The funding will allow Futurpreneur Canada to provide payment relief for its clients for up to 12 months.
|
Financial support |
|
Support tourism opportunities in Prince Edward Island
The Government of Canada, through ACOA, is investing $262,696 in seven projects across Prince Edward Island to help strengthen the tourism industry and support jobs and growth opportunities.
|
Investment |
|
Support tourism opportunities in New Brunswick
The Government of Canada, through ACOA, is investing more than $2.3 million in 13 projects across New Brunswick to help strengthen the tourism industry and support jobs and growth opportunities.
|
Investment |
|
Support tourism opportunities in Newfoundland and Labrador
The Government of Canada, through ACOA, is investing $2.9 million in 27 projects across Newfoundland and Labrador to help strengthen the tourism industry and support jobs and growth opportunities.
|
Investment |
|
Support tourism opportunities in Nova Scotia
The Government of Canada, through ACOA, is investing $3.5 million in 22 projects across Nova Scotia to help strengthen the tourism industry and support jobs and growth opportunities.
|
Investment |
|
T2 Corporation Income Tax Returns deadline extended
The CRA will allow all businesses to defer T2 corporation income tax returns otherwise due in June, July or August, to 1 September 2020. |
Accounting and Tax |
|
Targeted support for tourism across Western Canada
The government announced $3.45 million to bolster recovery efforts for Western Canada’s tourism areas. The funds will support keystone assets and regionally-based tourism associations that provide services to SMEs. |
Fund |
|
Tariff relief to importers of certain medical goods
The government aims at waiving tariffs on certain medical goods, including PPE such as masks and gloves. This will reduce the cost of imported PPE for Canadian businesses, which face tariffs of up to 18%.
|
Tariff relief |
|
Tax audits
Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. Audits are temporarily suspended for all businesses.
|
Accounting and Tax |
|
Tax deadline for corporates
Instalments and income tax balances that would have been due in the period between 17 March 2020 and 31 August 2020 are now payable by 1 September 2020.
|
Accounting and Tax |
|
Tax deadline for individuals
The deadline for paying income tax or the annual registration fee for the enterprise register related to the 2019 income tax return has been extended to 1 September 2020.
The deadline for paying income tax or the annual registration fee for the enterprise register that is related to the 2020 income tax return and that would normally be paid before 1 September 2020 has been extended to 1 September 2020.
If a trust is required to make instalment payments, the payment normally due on 15 June 2020 is now due by 1 September 2020.
|
Accounting and Tax |
|
Temporary wage subsidy
The government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities. The government announced a 10% temporary wage subsidy for employers for a period of three months.
Eligible employers (individuals - excluding trusts, certain partnerships, non-profit organization, registered charity, or certain Canadian-controlled private corporations - including cooperative corporations) who pay salary, wages, or taxable benefits to employees, between March 18, 2020 and June 19, 2020, can reduce payroll remittances of federal, provincial, or territorial income tax by the amount of the subsidy. This measure is only applicable to remittances made to the CRA.
|
Payroll |
|
Time limit extension to pay rent for mineral leases in Nunavut and grants rent relief
This Order extends time limits to pay rent for mineral leases under the regulations that become due between 13 March 2020 and 29 October 2020 inclusively by up to six months, and not extending beyond 30 October 2020. Canada has also amended the Nunavut Mining Regulations to waive for one year, upon request in writing to the Department, the payment of annual rent on mineral leases due in the one-year period from 13 March 2020 to 12 March 2021. Any rent that has been paid before the amendment that will come into force will be waived in the following year.
|
Measures |
|
Update on Sales Tax and Duty Payment Deferral
The government announced that GST/HST and customs duty payment deferral will end as planned on June 30. Businesses that continue to experience difficulty in remitting GST/HST and customs duty amounts owing can contact the Canada Revenue Agency (CRA) and Canada Border Services Agency (CBSA) to make a request for the cancellation of penalties and interest, and/or for a flexible payment arrangement with the CRA.
|
Accounting and Tax |
Quebec |
Collaborative Action for Employment program
The Quebec government's Collaborative Action for Employment (PACME) program aims to provide direct support to businesses through financial support to promote training and optimize the functioning of businesses and the labour market. Eligible expenses include reimbursement of salaries, training expenses, related expenses and human resources management expenses.
|
HR |
|
Income tax payments
For businesses, the payment of tax installments and taxes is suspended until July 31,2020. |
Accounting and Tax |
Cayman Islands |
CIGOUK Launches Welcome Pack
Cayman Islands Government Office in the UK (CIGOUK) has a digital “Welcome Pack” to provide continued assistance to Caymanians overseas. The digital welcome pack has been created for Caymanians and Cayman residents arriving in the UK either for the first time or returning to work, school or university in the days and weeks ahead.
|
Measures |
|
Deadline extended for annual returns
The Registrar of Companies (ROC) and the Department for International Tax Cooperation (DITC) have extended the deadlines for entities to complete their annual returns and economic substance notification filings until 30 June. |
Accounting and Tax |
|
Micro & small business relief measures
The Low Interest Loan Programme provides financial and non-financial support to micro and small businesses and will benefit businesses that are 100% Caymanian-owned and have been operational for at least 12 months prior to March 2020.
The Micro and Small Business Grant Programme targets three thousand vulnerable micro and small businesses and is intended to provide initial assistance of $1,000 monthly to selected business for three months.
|
Measures |
|
Waived trade and business fees
Payment of trade and business licensing application fees from 1 May to 31 July 2020 have been waived. Late fees from 1 March to 31 July 2020 will also be waived for all applicants. |
Grants |
|
WORC employment services
Jobs are being found for Caymanians who have registered with Workforce Opportunities & Residency Cayman, as WORC’s employment services unit continues to match jobseekers with employers in both the public and private sectors. |
Employment |
Chile |
Economic emergency plan
To protect labour income, employment and SMEs the government has created a plan that includes:
- Suspension of the monthly provisional payments (PPM) of corporate income tax for the next 3 months.
- Postponement of the payment of VAT for the next 3 months for all companies with annual sales under 350 thousand UF and allowing payment in 12 monthly installments at 0% interest rate.
- Postponement until July 2020 of the payment of income tax for SMEs with what they declare as income next April.
- Postponement of the payment of April’s real estate taxes for companies with sales under 350 thousand UF and for persons with properties with a tax assessment under 133 million CLP.
- Temporary reduction of the stamp and seal tax to 0% for all credit operations during the next 6 months.
|
Financial support |
|
Emergency Family Income
The Emergency Family Income initiative, is part of the Agreement for Social Protection and Job Recovery, extends the benefit to up to $ 100,000 per person. |
Income |
|
Emergency Plan for Protection and Reactivation
The government announced an Emergency Plan for Protection and Reactivation with resources up to $ 12,000 million. It has three parts: 1) Fiscal Framework for 24 months and subsequent fiscal consolidation; 2) protection of family income; and 3) economic and employment recovery plan. |
Employment and
Income
|
|
Employment Protection Law and Unemployment Insurance
The government expanded the coverage of employment protection and improved unemployment insurance. The project proposes to make the requirements for access to Unemployment Insurance benefits more flexible, allowing workers who are unemployed or who are unemployed, after having received the benefits of the Employment Protection Law, to access the benefits of the Insurance.
|
Measures |
|
Government COVID-19 stimulus package
The government announced the release of $4.5 billion in additional stimulus packages to help mitigate the effects of the covid-19 pandemic while the country's population is taking advantage a new rule that allows the withdrawal of pension funds.
|
Fund |
|
Government programs to protect and promote employment
The President launched an Employment Protection Law, which safeguards families' labor income, ensuring employment and labor rights such as the payment of contributions by the employer. Also, the Head of State has signed the bill to protect 1.2 million independent workers by creating a reserve fund with benefits similar to those granted by unemployment insurance. |
Payroll |
|
Measures for micro trade
Through the creation of a solidarity fund of US $ 100 million, funds will be channeled through the municipalities to with the challenges of local micro-commerce. |
Financial support |
|
Measures for SMEs with annual income up to 350,000 UF
Provisional Monthly Payments are suspended for April, May and June. Also, VAT payment is extended for the months of April, May and June 2020. The deferred VAT will be paid from July 2020, in 6 adjusted installments, without fines or interest. Payment of the first contribution installment for April 2020 is extended, which will be paid in three installments.
There is a rate reduction to 0% for the Stamp and Stamp Tax that is applied to credit operations for 6 months.
|
Accounting and Tax |
|
Medical leave processing
Medical leave documents for employees can be processed electronically. |
Medical leave |
|
New support measures for the middle class workers
The government announced a non-refundable bond of $ 500 thousand pesos, a state solidarity loan of up to $ 1.95 million pesos, an expansion of the rental subsidy and the postponement of the payment of university credits. |
Measures |
|
New tax measures to support SMEs
Extension of the suspension of Monthly Provisional Payments are suspended and has been extended through September. VAT deferral is extended through September for companies whose annual income is equal to or less than 350,000 UF and a decrease in sales equal to or greater than 30% for the April-June 2020 quarter, compared to the same period in 2019. Deferred fees will be paid without interest or fines.
|
Accounting and Tax |
|
Reactivation plan for job losses
The government announced a reactivation program to advance the recovery of the 1.8 million jobs lost during the coronavirus pandemic and the global recession. The government announced a massive and urgent program of employment subsidies, which could benefit up to 1 million people and will cost close to US $ 2 billion.
The government announced tax incentives for private investment, which represents about 80% of total investment, and the speeding up of 130 private investment projects, which involve US $ 21 billion and have the capacity to create 120 thousand direct jobs. Also, the Concessions Program of the Ministry of Public Works will be strengthened and streamlined. The plan includes a special program to simplify procedures and expedite permits to promote and accelerate investment, entrepreneurship and recovery.
|
Measures |
|
Reactivation plan to advance the recovery of the 1.8 million jobs lost
The President of the Republic announced a reactivation program to advance the recovery of the 1.8 million jobs lost during the coronavirus pandemic. The President announced a program of employment subsidies, which may benefit up to 1 million people and will cost close to US $2 billion. The Government also announced a robust Public Investment Plan in physical, social and digital infrastructure.
|
Measures |
|
Social protection and job recovery
The program of US $ 12,000 million, expands and strengthens the Emergency Family Income, increases coverage and improves the benefits of Unemployment Insurance and allocates additional funds for municipalities and Civil Society Organizations. |
Unemployment
Insurance
|
|
State Guarantee for credit
The government is working on a guarantee plan to mobilise credit for companies with annual sales of up to 1 million UF. This measure seeks to provide liquidity to 99.8% of companies, which provide 84% of employment, so that they can cover their working capital needs during this emergency.
|
Measures |
|
Support for municipalities
The President of the Republic announced the distribution of US $120 million so that the communes of Chile have the resources to face the global pandemic of coronavirus. The second Municipal Solidarity Fund amounts to US $ 120 million and is 20% higher than the resources granted in May.
|
Measures |
|
Support for the most vulnerable sectors
The government announced distribution of the US $20 million fund to prioritise the greatest social challenges, focusing on primary needs, such as food and shelter.
|
Measures |
China |
Additional funding sources for small businesses
China will strive to provide more funding sources for small businesses and lower the financing costs via financial bonds for micro and small enterprises.
|
Fund |
|
Bank loan buyback to lift SME lending
China's central bank is likely to buy the bank loans made by some commercial lenders to increase lending to small firms by as much as ¥1 trillion ($140.18 billion). The People's Bank of China will use a ¥400 billion ($56 billion) special re-lending quota to buy up to 40% of the loans made by banking institutions to SMEs on a quarterly basis till June 2021.
|
Loan |
|
Bank-tax interaction for small and micro enterprises
The State Administration of Taxation and the China Banking and Insurance Regulatory Commission will support small and micro enterprises with urgent capital needs, tax credit loans, and help to overcome difficulties in resuming production.
|
Accounting and Tax |
|
Bonds from China's rural policy bank
The Agricultural Development Bank of China (ADBC), a rural policy bank, launched 13.2 billion yuan (about $1.89 billion) of bonds. |
Fund |
|
Central bank’s counter-cyclical measures
The People's Bank of China (PBOC) will make full use of financial policies including the issuance of reloans and smooth policy transmission to stabilize the job market and boost the real economy. Along with targeted reserve requirement ratio cuts for eligible banks, special reloans has been issued to provide preferential interest rate credit support to enterprises and special bonds to provide sufficient funds to commercial lenders.
|
|
|
Central SOEs to utilize technologies
Central State-owned enterprises have been encouraged to utilize technologies to accelerate the integration between the latest digital solutions and traditional manufacturing.
The government will increase the development of emerging industries such as the internet of things, industrial internet, cloud computing, big data and artificial intelligence in central SOEs, as well as reinforce innovation in areas like life sciences, telemedicine, healthcare and pharmaceutical product development.
|
Grants |
|
Commercial banks to increase financial assistance for SMEs
Commercial banks will increase their lending to small businesses with a solid tax payment background. Small and micro enterprises, which cannot provide any collaterals or guarantees for loans, can share their tax payment information with commercial banks to get funding.
To encourage bank lending to small companies, China's central bank has approved relending and rediscount provisions of 1 trillion yuan, adding to the earlier 500 billion yuan quota to boost credit for small and medium-sized companies.
|
Grants |
|
Consumption stimulus plan
The government will stimulate consumption of key products such as auto supplies and home appliance sand widen imports of high-quality goods to further boost domestic demand. The Ministry of Commerce aims to work with other government branches to implement policies and measures to promote vehicle sales and build a high-level platform for the third China International Import Expo, as well as enrich the operational content of both online and offline sales channels. China has extended tax exemptions for new energy vehicle purchases for another two years.
|
Grants |
|
Cross-border economic cooperation zones
The Ministry of Commerce and the Export-Import Bank of China will strengthen financial support for cross-border economic cooperation zones, serve enterprises’ needs to respond to the epidemic, to resume work and production and to expand business, promote the innovative development of border trade, and foster new momentum for the development of border areas.
|
Grants |
|
Deferment of income tax payments
Small companies with thin profit margins are allowed to suspend payments of corporate income tax from 1 May 1 to 31 December 2020 until the first filing period in 2021. Individual business owners can delay payments of individual income tax incurred in the same period until the first filing period next year. |
Accounting and Tax |
|
Digital transformation of SMEs
The government will fuel the transformation of SMEs toward digitalization, and to help them be more digitally savvy. Efforts will be made to accelerate the digital transformation of enterprises and nurture new business models of the digital economy. It is proposed to build virtual industrial parks and clusters, as well as encourage leading enterprises to help their upstream and downstream enterprises to better embrace digital opportunities. |
Digital help |
|
Efforts to help small, medium and micro enterprises
As per the State Council, the new policies to support small and micro enterprises, include postponing the payment of income tax, increasing the value-added tax relief for small and micro enterprises and individual industrial and commercial households; extending the loss-carrying years of transportation, catering, tourism and other industries; reduce and exempt pensions, unemployment, three social insurance premiums for work injuries, etc.
Low-cost loans of ¥2.85 trillion have been provided to enterprises, especially small and medium-sized enterprises and individual industrial and commercial households, through special refinancing and re-discounting, incentivizing large state-owned banks to issue inclusive small and micro loans, and increasing special credit lines for policy banks; deferring principal repayment or interest. |
Financial support |
|
Enhance employment stability
China's State Council released a guideline to expedite the recovery of employment and keep it stable to counter the impact from the COVID-19 outbreak. It included prioritizing employment, helping migrant workers return to work, expanding job opportunities for college graduates, ensuring social security. Also, included fast-tracking targeted tax and fee reduction for safeguarding jobs, while prioritizing investment in industries that can create more jobs. It also called for a better environment for wider coverage of guaranteed loans for startups and policy support for venture investments.
|
Investment |
|
Enhanced legal service for private businesses
Chinese authorities are encouraging lawyers to provide additional services to small and medium-sized private enterprises to help them get back to ‘business as usual.’ Online services such as legal training and consultation will also be available.
|
Legal support |
|
Enhanced measures for the economy
China will enhance macro-economic regulation and give more credit support to smaller and private companies. The government also pledged to make good use of capital markets, replenish the capital of small and medium-sized banks.
|
Credit |
|
Enterprise bonds
The National Development and Reform Commission approved and registered the issuance of enterprise bonds for 496.96 billion yuan ($70.27 billion), up by 38 percent year-on-year. It has opened a green channel for hard-hit companies and key firms engaged in epidemic prevention and control work.
|
Measures |
|
Extension in VAT reduction
The execution period for the implementation period of the VAT reduction and exemption policy for small-scale taxpayers has been extended to December 31, 2020.
|
Accounting and Tax |
|
Extension of preferential tax policies
The government will integrate fiscal and financial policies and continue parts of expired preferential tax policies to the end of 2023. The tax support policies will remain applicable to inclusive financial services and micro-loan companies to help serve micro and small enterprises, self-employed individuals and farmers.
|
Accounting and Tax |
|
Extension on economic measures
Chinese authorities have announced the extension of fee cuts and exemptions for import and export enterprises to stabilize the foreign trade sector. The preferential policies, including waiving port construction fees levied on importers and exporters and halving oil-pollution damage compensation for ships, will be extended to 31 December 2020.
|
Measures |
|
Financial reform package
The government announced financial reform package to support smaller businesses to help facilitate a steady economic recovery and ensure stability in key areas, including employment and people's livelihoods. The measures include rolling out the matrix for regulators to evaluate banking services for small and micro businesses, further reform of small and medium-sized banks to accelerate their capital replenishment by raising funds through multiple channels and improve their corporate governance
|
Financial relief |
|
Financial support to ensure employment
The central government announced ¥53.9 billion (about $7.6 billion) of employment subsidies this year to stabilize and expand employment. |
Subsidies |
|
Fiscal and financial support measures intensified
China will make further efforts to ensure the full delivery of all support policies introduced this year, better leverage its proactive fiscal policy, and scale up financial support for the economy to help businesses. Fiscal and financial measures will be harnessed, and policies such as tax and fee cuts, financial support and assistance to companies for maintaining payrolls will be fully delivered to help smaller firms. |
Accounting and Tax |
|
Foreign ownership caps lifted
China has lifted foreign ownership caps on securities firms and mutual fund companies on 1 April. Foreign financial institutions can now tap into the vast Chinese market without ownership limits in sectors like banking, insurance, securities, futures and fund management.
|
Grants |
|
Intensify efforts to resume work and production
More VAT relief for micro, small and household businesses, extending the loss carry-forward period from five years to eight years for sectors severely hit, such as transportation, hospitality and tourism; lowering or waiving ¥600 billion of employers’ contributions to the old-age pension, unemployment and workplace safety insurance schemes in the first half of the year, and adopting the refund of unemployment insurance premiums for keeping payrolls stable.
It also includes waiving over ¥140 billion in road and expressway tolls, and cutting electricity and gas rates for enterprises by ¥67 billion in the first half of the year, releasing ¥1.75 trillion of funds by cutting the required reserve ratio; providing ¥2.85 trillion of low-cost lending for businesses, especially micro, small, and medium-sized firms and household businesses, through special re-lending and re-discounts, encouraging State-owned large banks to issue inclusive loans to small and micro businesses, and increasing the special credit quota of policy banks; deferring over ¥1 trillion in principal or interest payments for more than 1.1 million micro, small and medium-sized businesses, and stepping up support for spring farming and the development of animal husbandry.
|
Accounting and Tax |
|
Loans and credit for small businesses
Banks and other financial institutions will make loans more accessible to small and micro-sized businesses affected. They will offer customized credit loans, with faster credit approval, appropriate increases in credit limit, and extensions of loan terms.
|
Loans, Credit |
|
Lower financing costs for enterprises
Banks should further cut fees and specify charges to lower the financial burden on enterprises. Practices such as forcing companies to deposit a part of their loans or make deposits as preconditions for credit, as well as bundle sales of financial products, will be strictly prohibited. |
Loan |
|
Lowered provision coverage ratio
The regulatory requirement for the provision coverage ratio of small and medium-sized banks will be lowered by 20% points, to free up more credit resources and boost the capacity for serving micro and small companies.
|
Payment support |
|
Measures for SMEs
China will continue to implement the policies of reducing taxes and fees for enterprises including the SMEs. The central government has issued about 90 policies in various fields, which have promoted the development of the SMEs.
|
Measures |
|
Measures to support construction industry
The measures include strengthening industry employment security; increasing financial credit support; improving the project payment system; implementing fund substitution mechanisms; ensuring the supply of materials; increasing project recruitment bid support; support personnel training and technological innovation; optimize business environments and strengthen quality and safety management.Banks and other financial institutions will make loans more accessible to small and micro-sized businesses affected. They will offer customized credit loans, with faster credit approval, appropriate increases in credit limit, and extensions of loan terms. |
Financial support |
|
Measures to support enterprises
China has offered 3.55 trillion yuan of low-cost capital to financial institutions via reserve requirement ratio cuts, re-lending, and re-discount quotas. Multiple steps should be taken to further enhance the implementation of positive fiscal policies, increase financial support for the real economy and small- and medium-sized firms, and ease the cost pressure for firms of the manufacturing and service industries. To promote the development of new business models and flexible employment, steps will be taken to strengthen guaranteed loans for start-ups and advance mass entrepreneurship and innovation.
|
Financial support |
|
New financial reform measures
China will introduce 11 financial reform measures, including urging commercial banks to provide financial services to small and micro enterprises more efficiently; further reform of small and medium-sized banks will be carried out, such as accelerating capital replenishment of these banks, raising funds through multiple channels and combining replenishment of capital with the optimization of corporate governance.
Governmental financing guarantee institutions will support small businesses and farmers in a bid to share risks and help enterprises to resume work and overtake the difficulties.
|
Financial reforms |
|
New policies to support small firms
The central government is likely to push financial institutions to sacrifice ¥1.5 trillion ($212.1 billion) in profits in 2020 through policies such as guiding lending rates lower, deferring loan repayments for micro, small and medium-sized enterprises, and granting small businesses collateral-free loans.
More than ¥100 billion of additional transferred loans will be provided mainly to small and medium-sized banks, especially online-only banks, to ease small and micro enterprises' financing difficulty and reduce their financing costs.
|
Policies |
|
"One-stop" tax reduction and fee reduction policy
The state government established a "one-stop" tax reduction and fee reduction policy implementation mechanism to ensure that taxpayers and payers can benefit from the policy; and simultaneously severely defraud the "false declaration" behavior of tax preferential policies for epidemic prevention and control to create fairness Fair tax business environment.
|
Accounting and Tax |
|
Package to boost tourism
The government of China plans to introduce a package of measures supporting rural tourism development and facilitating tourism market recovery. Among the measures are the acceleration of tourism infrastructure construction and the launch of high-quality rural tourism routes.
|
Measures |
|
Policies to stimulate domestic car market
Both the central and local authorities have come up with measures to help soften the impact on the auto industry. There is a plan to extend subsidies for new energy vehicles until 2022, and such vehicles will remain exempt from the purchase taxes for another two years as well. Some megacities with license plate quotas are relaxing the limits.
|
Grants |
|
Rent cuts for small businesses
China's central State-owned enterprises (SOEs) are likely to reduce or waive rents for small businesses in a bid to cut small business operating costs.
|
Rent waived off |
|
RRR cuts for small, medium-sized banks
China's central bank announced a decision to cut the reserve requirement ratio (RRR) for small and medium-sized banks by 100 basis points. The RRR cuts will be implemented in two phases, with the first round of 50 basis-point reductions expected on April 15. The second phase of reduction of equal amount will be effective on May 15.
|
Bank support |
|
Reduce burden and improve efficiency for export enterprises
Taxation department has made efforts to reduce the burden on enterprises and improve the efficiency of tax refunds and help foreign trade companies achieve light duty. Around 1084 items of the export tax rebate rate have been increased to 13%.
|
Accounting and Tax |
|
Reduction in interest rates
People's Bank of China has decided to cut the interest rates of the re-lending and rediscount lending facilities as of the beginning of July, in support of credit to smaller businesses.
|
Interest Rates |
|
Shared spaces for SMEs
The Beijing Business Incubation Association has offered shared working spaces free of charge or reduced prices for small and micro businesses.
|
Teleworking support |
|
Support for cinemas in Beijing
Beijing has offered a total of 20 million yuan to cinemas in the city to mitigate the impact of COVID-19 on their business.
|
Subsidy |
|
Support for small and micro businesses and agricultural entities
China is expected to accelerate equity investment through state financing guarantee fund this year, aiming at investing 10 prefecture-level government-controlled financing guarantee institutions successful in supporting small and micro firms as well as agricultural and rural entities.
The state financing guarantee fund will work with banking entities in bulk guaranteed loan businesses, planning to increase 400 billion yuan (about $56.52 billion) in reinsurance service in 2020.
Local government-controlled financing guarantee and re-guarantee entities will halve small and micro businesses' costs for financing guarantee and re-guarantee services in 2020 and further enlarge the scale of services to small and micro firms as well as agricultural and rural entities.
|
Payment support |
|
Support for SMEs
China adopted a new package of supportive policies to facilitate development of small and medium-sized enterprises, focusing on leveraging monetary tools and encouraging qualified firms to go public. Key measures include guiding commercial banks to further increase credit for smaller businesses.
|
Measures |
|
Support for the cultural sector
For the film industry, taxpayers are exempt from value-added tax until 31 December 2020 on income derived from the provision of film screening services. The longest carry-over period for losses incurred by film industry enterprises in 2020 will be extended from 5 years to 8 years. |
Accounting and Tax |
|
Support policies for SMEs
China has issued a series of policies in finance, taxation, social security and other fields to help SMEs overcome current difficulties. |
Finance/Tax |
|
Support preferential tax policies
The government has introduced measures such as, preferential tax treatment to small-scale VAT taxpayers and individual industrial and commercial households, postponing the payment of 2020 income tax to small profit-making enterprises and individual industrial and commercial households, implementing relevant tax support policies for inclusive finance and increasing the export tax rebate.
|
Accounting and Tax |
|
Support resumption of work and production
The People's Bank of China issued CN¥111.4 billion of preferential interest rate loans to support businesses resuming work and production.
|
Bank support |
|
Tax measures
The Chinese government has rolled 20 targeted incentives, including cutting value-added tax, consumption tax, and corporate and individual income taxes, as well as waiving employers' payments to various social insurance schemes. The incentives will aid in the resumption of work and production for small- and medium-sized enterprises. China announced to extend tax exemptions by an additional four years till December 2023, to further improve the inclusive finance service for smaller businesses. Also, VAT, which was already collected but eligible to be waived, can be deducted in subsequent months or refunded.
|
Accounting and Tax |
|
Tax measures for SMEs
Taxpayers will be allowed to report their taxes in April based on the first quarter income, and the tax collection period will be extended to April 24 from April 20. To support exporters, China has raised the export rebate rates to 9% and 13% for two groups of exported goods. |
Accounting and Tax |
|
Unemployment insurance premiums
A total of 3.2 million companies have received 42.3 billion yuan ( $5.98 billion) in refunded unemployment insurance premiums. Chinese authorities have taken measures to help micro, SMEs tide over and secure job positions for staff. The measures included cutting tax burdens and boosting credit support.
|
Payroll |
Colombia |
Credits through National Guarantee Fund (FNG)
The government will support the issuance of new credits in order to maintain active credit relationships and finance micro, small and medium-sized companies (Mipymes), to avoid bankruptcies and massive layoffs. The National Guarantee Fund S.A. (FNG) is the entity through which the government seeks to facilitate access to credit by granting guarantees.
|
Measures |
|
Extension of PAEF until December 2020
The National Government filed with an urgent message the bill to extend the Formal Employment Support Program (PAEF) until December 2020.
|
Measures |
|
Formal Employment Support Program (PAEF)
The national government will grant monthly, and up to three times, a contribution per employee corresponding to 40% of the minimum wage (351,000 pesos), for companies to pay their workers' wages.
|
Measures |
|
Increase in benefits for businesses
To support businesses, the government and Bancóldex added $ 350 billion to their benefit package for loans that will be available for all sectors. A 2% decrease for interest rates has been offered with a three-year term and a six month grace period for repayment.
|
Payment support |
|
Support program for payment of the services premium
The Service Premium Payment Program - PAP, establishes a single contribution that will correspond to the number of employees multiplied by $ 220 thousand for workers who earn between a minimum wage and a million pesos.
Individuals, legal entities, temporary unions and consortia may apply to this profit, proving a decrease of 20% of income. The PAP will be governed with parameters similar to those of the Employment Support Program Formal.
|
Measures |
|
Tax deadline extended
Taxpayers of residential and non-residential properties will be able to pay until 5 June 2020, with a 10% discount. |
Timeline extension |
|
Unemployment benefits
Employees can withdraw unemployment funds when employee contracts are suspended.
|
Fund |
Croatia |
Croatian Bank for Reconstruction and Development (HBOR) measures
Some measures for HBOR clients include: existing loans now have a grace period of repayment of the loan principal; approval of new liquidity loans to economic entities for financing salaries, overheads and other basic operating costs, the so-called cold drive (excluding credit obligations to commercial banks and other financial institutions) in cooperation with commercial banks; approval of guarantees to exporting commercial banks and HBOR within the export insurance guarantee fund with the aim of approving new working capital loans.
|
Measures |
|
Extension of bank moratorium
The Croatian Bank for Reconstruction and Development has extended the moratorium for all clients to seven months or until 30 September this year, and for tourist clients to 16 months or until 30 June 2021.
|
Extension |
|
Measures to preserve jobs
Measures include financing 100% of the cost of the net minimum wage in the next three months, with the possibility of extension, Also, to preserve the seasonal workforce there is financial assistance for up to six months with co-financing the cost of extended pension insurance.
|
Employment |
|
Micro loans for rural development
Micro loans for rural development are being introduced and working capital within this program is intended for small businesses in the agricultural, processing and forestry sectors. The loan is available in the amount of 1,000 to 25,000 euros, and the funds are provided by the Rural Development Program.
The repayment period is up to three years with an interest rate of 0.5 percent and a grace period of up to 12 months.
|
Loans |
|
Submission of financial statements extended
The government has extended the deadline for submission of financial statements for 2019, from April 30 to June 30. All related forms and related calculation of income tax are delayed. Entrepreneurs are also exempt from paying fines to publish financial statements. |
Accounting and Tax |
|
Support measures for commercial banks
All collection measures for debtors are suspended for three months.
Liquidity loans and working capital (salaries and working capital excluding liabilities to financial institutions) are postponed with a maturity of up to three years.
|
Measures |
|
Tax deferral
The Ministry of Finance has put in place key measures for the deferral of payment of certain tax benefits, such as income tax or and health and pension contributions, and interest free installment repayment of these benefits for 24 months.
|
Accounting and Tax |
|
Wage compensation
The government has increased support for entrepreneurs struggling to preserve jobs by paying workers salaries. The increase is from HRK 3,250 to HRK 4,000 net. At the same time, the state takes over the benefits of HRK 4,000, which is approximately HRK 1,460 per employee, which is a total of HRK 5,460. |
Payroll |
|
Working capital loan program
Working Capital Facility will help micro, small and medium-sized enterprises with loan amounts up to HRK 750,000 for working capital, with an interest rate of 0.25%, beginning at 12 months and a maximum repayment period of five years. There is a shortened procedure for processing the application and no additional fees. |
Loans |
Cyprus |
Aid measures
The government announced the implementation of the Special Plans which includes tourism aid, economic help for business and an unemployment plan.
|
Measures |
|
Self-employed individuals’ scheme
Self-employed workers who have partially suspended their operations, meaning they have a decrease in their turnover in the order of more than 25% during the month of March 2020 and they predict an equivalent decrease in turnover for the month of April 2020 are eligible for a special allowance that will equal 60% of the amount of the weekly total of insurable earnings. |
Financial support |
|
Special Unemployment Support Allowance
From 13 May to 12 June, for any person who is registered as a regular unemployed person in the Register of the Public Employment Service and received an unemployment benefit, for which he has exhausted the right to pay either in January or February, either in March or in April 2020. The Special Allowance will be equal to € 360 for a period of one month.
|
Unemployment
Allowance
|
|
Support for small businesses
Businesses employing up to 5 people that have suffered a loss bigger than 25% of their turnover but are still employing their employees can receive a subsidy of 70% of the workers’ salary. |
Payment support |
|
Suspended business unemployment scheme
Businesses that have suspended their operations or continue operations but have suffered losses more than 25% of their turnover are entitled to a special unemployment benefit that will be paid to 90% of employees, provided the terms and conditions are met. |
Payroll |
|
Temporary suspension of VAT payments
Payments for VAT are suspended for two months for businesses whose turnover was not over €1 million according to the tax returns submitted in 2019 and whose turnover has fallen by more than 25% without imposing any charges. Arrangements can be made for gradual payments until 11 November 2020. |
VAT |
Czech Republic |
Antivirus employment support program
An Antivirus employment support program has been approved to help companies protect jobs and compensate employers for a substantial part of labor costs The Antivirus A program applies to companies where there has been a forced reduction of operations. The program Antivirus B applies to companies whose employees have economic difficulties. The Antivirus C program applies to companies with up to 50 employees and consists of the waiver of social security contributions for June, July and August 2020.
|
Measures |
|
Care allowance age increase
The Government has altered the period of validity for payment of the Sickness Insurance Act as long the ban on school attendance remains in force. It will raise the age limit from 10 to 13 years of age. Those taking care of the disabled at home following the closure of day care centres are also entitled to the care allowance. |
Grants |
|
Compensation bonus to municipalities
A one-time contribution of CZK 1,250 per capita is provided to municipalities on the basis of an amendment on the compensation bonus, which took effect on 7 August. The amendment also allows people working on an insured agreement to apply for state aid. The contributions are intended to compensate municipalities for the fall in tax revenues related to the payment of state aid for sole proprietors and partners of small limited liability companies.
|
Measures |
|
Compensatory bonus for conciliators and self-employed persons
The government approved state aid for people who worked on a work performance agreement (DPP) or a work activity agreement (DPC). Contractors who have paid sickness insurance will be able to apply for a compensatory bonus of CZK 350 per day, retrospectively for the period from 12 March to 8 June 2020.It is also likely to expand the circle of recipients of the compensation bonus to people working on insured agreements, ie for DPČ from CZK 3,000 and for DPP over CZK 10,000 per month.
|
Compensatory bonus |
|
Culture & creative industry support
Entrepreneurs in the field of culture who, due to preventive measures of the government had to cancel or postpone their planned actions, will be able to apply for a subsidy in the amount of 50% of eligible expenditures ex post, maximum 5 million crowns.
SMEs in the creative industries will be able to receive support in the form of creative vouchers for the purchase of already paid creative services.
In the case of entities focused on furniture design, service design, film and video, photography, graphic design, music and sound, information and communication technologies, cultural heritage, marketing strategies, online marketing, PR, work with texts and webdesign, the grant will be a maximum of 150 000 CZK.
For companies focused on product design, industrial design and crafts, the subsidy will be a maximum of CZK 250,000.
|
Measures
|
|
Direct support for the self employed
Self-employed persons could originally apply for support of CZK 500 per day for the period from March 12 to April 30, for a maximum amount of CZK 25,000. However, due to the extension of the state of emergency and the continuing closure of establishments, the Ministry of Finance has prepared an amendment to the law, which allows injured self-employed persons to continue to apply for CZK 500 per day from 1 May to 8 June for a maximum of CZK 19,500. |
Payroll |
|
Export Guarantee and Insurance Company fund
The government approved a proposal by the Ministry of Finance for an extraordinary contribution of CZK 4 billion to the Export Guarantee and Insurance Company (EGAP) fund to cover liabilities from provided guarantees, with an aim to help export companies. |
Funds |
|
Guarantee for loans to companies
The Czech Republic will provide a state guarantee in the amount of a maximum of CZK 150 billion for loans to companies. The maximum amount of an individual loan is CZK 50 million. The condition for providing the guarantee is to determine the loan for operational financing and to prove that it is an applicant with a maximum of 500 employees.
In the case of small and medium-sized companies that employ less than 250 employees, the guarantee will be provided up to a maximum of 90% of the debt from the individual loan provided, with the lending bank's share of the risk is at least 10%.
|
Loans |
|
Loan guarantee system
A program has been created to provide a system of guarantees for the repayment of loans by exporters and producers. The maximum loan limit is 25% of the total annual revenue from the sale of products and services for the year 2019. The minimum amount of the guaranteed loan starts at CZK 5 million. Export Guarantee and Insurance Corporation (EGAP) will cover the principal of the loan up to 80%, so the minimum share of the bank will be 20%. |
Loans |
|
Measures for employees
The government has extended the period of payment of nursing allowance for the duration of the government measure banning school attendance, until 30 June 2020. Employees working on a performance agreement who pay social insurance are also entitled to the nursing allowance. From 1 April to 30 June, the nursing allowance (even retroactively) will increase from the normal 60 to 80% of the daily assessment basis.
|
Measures |
|
Plan for hotel units and tourist accommodation
In the context of the emergency measures taken by the Ministry of Labor, Welfare and Social Security, the Special Plan is decided for hotel units and tourist accommodation and the payment of a special unemployment benefit to private sector employees in accordance with the terms and conditions set out in this decision.
|
Measures |
|
Postponement of loan and mortgage repayments
The new law on the credit moratorium will allow companies to postpone the repayment of loans and mortgages with any bank and non-bank provider for up to half a year. |
Grants |
|
Project “Antivirus” to support companies
Czech government will pay out (through the respective employers) 60% of the average contribution base to employees affected by the quarantine. The government will support employers who continue, despite their businesses being shut down, to pay out 100% of the salaries to affected employees by covering 80% of salary costs. For supply chain interruptions that are crucial for an employer and if the employer still pays at least 80 % compensation to their employees, the state will contribute 50% of the compensation. If a business is hit by significantly lowered demand on services and the employer pays at least 60% compensation, the state will contribute by 50% of the compensation. |
Financial support |
|
Reduction of VAT
Value added tax on a wide range of goods and services will be significantly reduced to 10%. The second reduced VAT rate now includes catering, some craft and professional services, as well as water and sewerage. Furthermore, rates of 10% have also been unified for books, e-books and audiobooks. |
VAT |
|
Special Plan for Economic Activities related to the Tourism Industry
The decision of the Minister of Labor, Welfare and Social Insurance has been published in the Official Gazette of the Republic. This Decision will be referred to as the Special Plan of Economic Activities Related to the Tourism Industry, for economic activities which are directly affected by tourism or financial activities associated with companies that are under mandatory full suspension. The aim of the government is to support both private sector employees and businesses. This Special Plan is decided and the payment of a Special Unemployment Benefit to the Company for employees of the private sector in accordance with the terms and conditions set out in this Decision.
|
Measures |
|
Support for large companies, COVID + program
The Export and Guarantee Insurance Company's guarantee program is prepared for companies with more than 250 employees, up to a total amount (including existing products) of insurance capacity of CZK 330 billion.
|
Fund |
|
Support for maintaining employment
A supportive loan program called COVID II, will allow applicants to draw a state-guaranteed and subsidized loan from commercial banks. The government will release 150 billion crowns, which will enable loans up to 500 billion crowns. Companies with up to 250 employees will be able to apply for an operating loan of up to 90% of the principal of the guaranteed loan, up to a maximum of CZK 45 million. Companies with up to 500 employees can obtain a loan of up to 80% of the principal of a guaranteed loan, up to a maximum of CZK 40 million.
|
Fund |
|
Support for partners of small limited liability companies
Direct support is paid in the form of a compensatory bonus of CZK 500 per day for the total period from 12 March to 8 June, ie a maximum of CZK 44,500. |
Financial support |
|
Support for self-employed
The Ministry of Finance and the Financial Administration created a program of direct support for self-employed persons to apply for the nominal amount of CZK 25,000.
|
Measures |
|
Support for self-employed persons
The state will pay a financial contribution for lost earnings for self-employed persons who, after the introduction of extraordinary government measures, care for children under 13 and dependent children up to the age of 26 who depend on the help of another person in the amount of 424 crowns per day. Self-employed persons are waived minimum mandatory social security payments and contributions to the state employment policy and pension and public health insurance from March to August 2020.
|
Fund |
|
Tax filing
The Czech government will eliminate penalties for late tax filing deadlines of VAT and CIT. CIT filing has been postponed from 1 April to 1 July. |
Accounting and Tax |
|
Tax relief
The Ministry of Finance has prepared a package of tax relief for natural and legal persons , including the waiver of June advances on income tax and the postponement of the deadline for filing a tax return for real estate acquisition tax.
|
Accounting and Tax |
|
Tax return for real estate acquisition tax
The deadline for filing a tax return for real estate acquisition tax has been deferred until 31 August 2020. |
Accounting and Tax |
|
Technology grant program
The new grant program will support projects that are directly related to the fight against the further spread of the virus through the acquisition of new technological devices and equipment The subsidy can reach up to 20 million crowns, with 300 million crowns available.
|
Fund |