Ecovis Global > Corona Pandemic: Immediate Taxation, Legal Measures and Financial Aid in Sweden, Egypt, Georgia, Lithuania and the UK
Corona Pandemic: Immediate Taxation, Legal Measures and Financial Aid in Sweden, Egypt, Georgia, Lithuania and the UK
17. April 2020
The Swedish government has announced new measures to reduce the impact of the COVID-19 crisis on businesses and individuals. Georgia and Lithuania have also announced new support for employers. Our professionals provide an updated summary for you.
The Swedish government has presented a crisis package to support individuals and companies who are suffering financially due to the coronavirus. The main details include the following:
Temporarily reduced social contribution costs from March to June 2020
Possibility to postpone payment of taxes and fees
Introduction of a short time working allowance. Employers can reduce their employees’ working hours and receive financial support from the government for salary costs
Temporary discount on rental costs in exposed industries
State to covers costs for sick pay. The government has decided that employers will be compensated by the state for sick pay costs for April and May
Increased loan facilities and credit guarantees for Swedish businesses
Temporary reinforcement of unemployment insurance
Ecovis Sweden continues to monitor the situation and is committed to delivering all the detailed information quickly to help clients find the right solutions through the time of the pandemic.
On 8 April 2020, the Egyptian government extended the curfew (8 pm to 6 am) for 15 days and extended the shutdown of all airports, cafes, casinos, cinemas, clubs and non-essential government agencies.
Ecovis Egypt remains at our clients’ disposal to provide help with any urgent requests and where needed. We are here to provide our best support in guiding our clients through this difficult time.
The Georgian government has declared a state of emergency for the entire territory of Georgia. It is to last from 21 March until 10 May. The government has announced monthly financial aid for those who have lost their job as a result of the pandemic, but the exact amount of the monthly aid is yet to be disclosed. According to the government, GEL (Georgian lari) 2 billion has been allocated to support the country’s economy, but the concrete plan has yet to be disclosed. Ecovis Georgia will deliver the most up-to-date information once any further details of the financial aid package are released.
The Lithuanian government has released new support subsides to be paid to employers who declare downtime during quarantine due to the COVID-19 crisis.
Under the Lithuanian laws, an employer may declare downtime or partial downtime to employees due to the extreme situation or quarantine in the country. It can be applied individually or for a group of employees.
The employer may declare partial downtime by reducing the number of working days per week (by no less than 2 days) or working hours per day (by no less than 3 hours).
A minimum monthly salary (MMS) of EUR 607 gross shall be paid for the downtime to employees with a full-time employment agreement. Partial downtime is remunerated proportionally to the time spent on downtime.
The employer is allowed to pay more than the MMS (but not more than the salary given in the employment contract). In this case, the state would also pay a higher subsidy:
70% of the employee’s accrued salary during downtime, but not more than EUR 910.50 gross (1.5 MMS). In this case, the employer must pay the employee at least EUR 1,300.71 in order to receive a maximum subsidy of EUR 910.50.
90% of the employee’s accrued salary during downtime, but not more than EUR 607 gross (1 MMS). In order to receive the maximum compensation of EUR 607 here, the employer must pay the employee at least EUR 674.44.
In accordance with the procedure established by the Chief State Labour Inspector of the Republic of Lithuania, the employer must inform the State Labour Inspectorate about the downtime being announced to the employee within 1 working day of the announcement.
The employee shall be required to come to the workplace during downtime.
50% of jobs will need to be preserved for 3 months after receiving subsidies.
Ecovis Lithuania prepares regular clients updates on its website. We are at your disposal whenever you have any questions or need our support.
The UK continues its lockdown after daily statistics show that the number of deaths and the number of confirmed cases of coronavirus are continuing to rise, according to data gathered by the government. With the continued enforcement of lockdown, the Office for Budget Responsibility has warned that the pandemic could trigger a record 35% decline in UK growth by June 2020, prompting many to call for an exit strategy from the UK government.
Ecovis Barlow Robbins has been dealing with varying issues from our clients such as ‘force majeure’ clauses in contracts, debt recovery, insolvency and employment issues. We have put together Coronavirus in the UK: Your legal hub of latest news and updates which covers the latest on everything from immigration law to corporate and dispute resolution law. This provides businesses and individuals with a source of legal guidance here in the UK and abroad.