MARCH 2020

VALUE CREATION

Government Measures to Counteract the Economic Effects of Novel Coronavirus (COVID-19), Part I

COVID-19 has changed the business landscape globally. As measures of inter-country lockdowns, local border closures, self-isolation, and social distancing and are announced, businesses and industries are bracing for the full impact to unfold.

Amongst the measures taken to mitigate the effects of COVID-19, governments across the world have announced stimulus packages to counteract the negative economic impact on business and ensure that businesses of all sizes can continue to operate and continue to employ.

The list is a work in progress, continually evolving as more governments announce assistance packages. The list should be used as a guideline and any business seeking to rely on the information should first review the official announcements and discuss the initiatives with their advisers.

Last Updated: 3 April 2:00pm AEDT

Last Reviewed: 3 April 11:00am AEDT

Australia

Australian Federal Government

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Increasing the instant asset write-off
Allows businesses to claim immediate deductions for eligible asset purchases costing <$150,000
  • Threshold expanded from $30,000 to $150,000
  • Expanded to businesses with aggregate annual turnover of <$500m (was <$50m)
Available for assets used or installed between 12 March 2020 and 30 June 2020
Businesses with aggregated annual turnover of <$500m

Eligible asset purchases <$150,000. Eligibility on a per asset basis

See the ATO information sheet for excluded assets
ATO information on the instant asset write-off

Fact Sheet: Delivering support for business investment
The proposal will only take effect when law has been passed
Accelerating depreciation deductions
Short-term growth initiative allowing businesses to accelerate deductions on eligible assets
  • Businesses will be able to deduct 50% of the eligible asset cost on installation in the first year
Assets acquired after the announcement and installed by 30 June 2021
Businesses with aggregated turnover of <$500m

Eligible assets refer to new assets which can be depreciated under Division 40 of the Income Tax Assessment Act 1997
Fact Sheet: Delivering support for business investment
Boosting cash flow for employers
Tax-free cash payments to SME’s that employ staff to assist with employee wages
  • Initial minimum payment of $10,000 to a maximum of $50,000 to eligible businesses (equal to 100% of PAYG withheld over 6 months)
  • Secondary payment for the period July 2020 to October 2020, equal to the total amount received in the initial payment
Initial payment - 6 months from 1 January 2020 to 30 June 2020

Secondary payment – July 2020 to October 2020
Businesses with aggregated annual turnover of <$50m that employ staff (incl. not-for-profits)
Initial payment delivered by the ATO as a credit in the activity statement system from 28 April 2020 upon lodging eligible upcoming activity statements

Secondary payment will be delivered as a credit in the activity statement system depending on whether the business lodges monthly or quarterly

Fact Sheet: Cash flow assistance for businesses
Cash support for apprentices and trainees
Wage subsidies available to small business to retain apprentices and trainees
  • Wage subsidy of 50% of apprentice’s or trainee’s wage for 9 months from 1 January 2020
  • Business will be reimbursed up to $21,000 per eligible apprentice or trainee ($7,000 per quarter)
9 months from 1 January 2020 to 30 September 2020

Employer can register from early April 2020

Deadline to lodge by 31 December 2020
Businesses employing fewer than 20 full time employees who retain an apprentice or trainee prior to 1 March 2020

Group Training Organisations that re-engage an out-of-trade apprentice or trainee
Assessment to be undertaken by an Australian Apprenticeship Support Network (AASN) provider

Fact Sheet: Cash flow assistance for business
Severely coronavirus-affected region assistance
Support to severely coronavirus-affected regions and communities
  • Waiver of fees and charges for certain tourism-related businesses
  • Assistance to help businesses identify alternative export markets or supply chains
  • Administrative relief from some tax obligations
As soon as practical
Businesses in severely affected regions and communities
Shop fronts being set up to assess on a case-by-case basis

Fact Sheet: Stimulus payments to households to support growth
Temporary relief for financially distressed businesses
Temporary changes to the insolvency laws under the Corporations Act 2001, to provide relief to businesses
  • Increasing the statutory demand threshold from $2,000 to $20,000 for 6 months
  • Increasing the demand response time from 21 days to 6 months
  • Temporary relief from personal liability for directors trading insolvent when trading in the ordinary course of businesses
  • Temporary instrument-making power to the Treasurer under the Corporations Act 2001 to amend provisions of the act to provide relief from specific obligations
6-month period
All businesses under the Corporations Act 2001
Fact Sheet: Temporary relief for financially distressed businesses
SME Guarantee Scheme
Provides a guarantee of 50% of new unsecured loans to SMEs to provide working capital
  • 50% guarantee for new unsecured loans provided by lenders
  • Maximum loan size of $250,000 per borrower
  • Loans will be payable over 3 years, with an initial 6-month repayment holiday
Early April 2020 until 30 September 2020
Businesses with aggregated turnover of <$50m
Fact sheet: Supporting the flow of credit
Jobkeeper Payment
Wage subsidies paid to employers in order to cover the cost of employees’ wages so the employer can retain staff
  • Employees who earn >$1,500 per fortnight, who are still employed – employers will receive $1,500 per fortnight and will be required to pay the balance in the employees' regular income
  • Employees who earn <$1,500 per fortnight – employers will receive $1,500 per fortnight to be entirely distributed to the employee
  • Employees who have been stood down – employers will receive $1,500 per fortnight to be entirely distributed to the employee. The employee will maintain their employment
Begins on 30 March 2020 and is designed to last for 6 months
First payment to be made in May and backdated
Employers with turnover of <$1bn, which have experienced a turnover reduction >30%, relative to a comparable period a year ago (of at least a month)

Employers with turnover of $1bn or more, which have experienced a turnover reduction >50%, relative to a comparable period a year ago (of at least a month)

Businesses include not-for-profits and cannot be subject to the Major Bank Levy

Only the business which is the primary employer for the relevant employee can claim the subsidy on behalf of that employee
Employers must elect to participate in the scheme through the Australian Taxation Office

Fact sheet: Supporting businesses to retain jobs
Commercial and residential tenancy relief

Work on this moratorium is incomplete and discussions to finalise a plan are still being considered by the National Cabinet
Moratorium on evictions for commercial and residential tenancies in financial distress due to COVID-19
  • Temporary moratorium on evictions for non-payment of rent
  • Tenants and landlords encouraged to agree on rent relief or temporary lease amendments
  • Reduction or waiver of rental payments for a defined period
  • Ability for tenants to terminate leases or seek mediation
  • Commercial property owners should ensure benefits received as a property owner, benefit their tenants in proportion to the impact of COVID-19
  • Landlords and tenants not affected by COVID-19 should continue to honour their lease agreements
  • Cost-sharing or deferral of losses between landlords and tenants with government assistance
PM Statement: Commercial and residential tenancies

Australian Taxation Office

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Payment deferrals
Deferment of certain payments to COVID-19 affected businesses
  • Deferred payment for income tax, PAYG instalments, FBT and excise by up to 4 months
  • Allowance for businesses to vary PAYG instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters
Immediately
Businesses affected by COVID-19
ATO COVID-19 guidance
GST credits
Allows businesses which report quarterly, to change to monthly reporting, in order to get quicker access to GST refunds
  • Change from quarterly GST reporting to monthly to gain quicker access to eligible refunds
  • Monthly reporting must be maintained for at least 12 months
From 1 April 2020. Change can only be put in effect from the start of the quarter
Businesses affected by COVID-19
ATO COVID-19 guidance

GST reporting cycle can be changed through the BAS agent or by calling the ATO on 13 72 26
Remitting interest and penalties
Interest and penalties incurred by affected businesses will be remitted
  • Any interest and/or penalties incurred by eligible businesses that have been applied to tax liabilities can be remitted
Applies to interest and penalties on or after 23 January 2020
Businesses affected by COVID-19
ATO COVID-19 guidance
Low interest payment plans
Businesses can enter into low-interest payment plans to pay down tax liabilities
  • Low-interest payment plans for affected businesses
Existing or ongoing tax liabilities
Businesses affected by COVID-19
ATO COVID-19 guidance

Reserve Bank of Australia

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Term funding facility for the banking system
Funding facility to the banking system to support credit to small and medium sized businesses
  • $90bn committed for a three-year funding facility to authorised deposit-taking institutions at a fixed rate of 0.25%
  • ADIs can obtain initial funding of up to 3% of existing outstanding credit
  • Additional funding can be accessed for ADIs which increase their lending to business, particularly SME’s
Further details to be announced
Authorised deposit-taking institutions
Reserve Bank of Australia: Monetary Policy Decision March 2020
Australian Banking Association
Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Loan repayment deferrals
Australian banks will defer loan repayments for eligible small businesses for 6 months
  • 6-month deferral of loan repayments for COVID-19-affected small businesses, applying to >$100bn in existing loans
  • Interest is capitalised with either the term of the loan being extended or payments increased after the deferral period
Applications are currently open
Businesses with business loan facilities up to $10m For commercial property landlords, they must provide an undertaking not to terminate leases or evict tenants for rent arrears as a result of COVID-19
Small businesses should contact their bank to discuss

Australian Banking Association: Small business relief package

Australian Banking Association: Banks to help commercial landlords

New South Wales

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Payroll tax waiver
Payroll tax waiver for eligible businesses
  • Waiver of payroll tax for eligible businesses for Q4FY20
Three months – April to June 2020
Businesses with payrolls up to $10m
NSW Government health boost and economic stimulus
Payroll tax threshold increase
Increase to the payroll tax threshold in 2020-2021
  • Threshold limit raised from $900,000 to $1m
From 1 July 2020
All businesses which employ
NSW Government health boost and economic stimulus
Certain small business fee waivers
Waiver of fees and charges for specific small businesses
  • $80m committed for the waiver of fees and charges to certain small businesses
Small businesses such as bars, cafes, restaurants and trades
NSW Government health boost and economic stimulus
Payroll tax deferral
Deferral of payroll tax for eligible businesses
  • Deferral of 6 months for businesses with payrolls >$10m
  • Deferral of 3 months for businesses with payrolls of up to $10m
For businesses with payroll up to $10m, this deferral will become active for the three months succeeding the payroll tax waiver initiative announced above
All businesses which employ. Payroll will determine deferral available
NSW Government Second stimulus package
Funding for public infrastructure cleaners
Funds for the employ of public infrastructure cleaners
  • $250m committed for additional cleaners for public infrastructure
Public infrastructure – transport assets, schools, public buildings
NSW Government health boost and economic stimulus
Funding for the maintenance of public assets
Funds available to bring forward maintenance works on public assets
  • >$50m committed towards maintenance of certain public assets
Public assets – social house, crown land fencing
NSW Government health boost and economic stimulus
Funding for capital works and maintenance
Funds available to bring forward capital works and maintenance
  • $500m committed towards unspecified capital works and maintenance
Unspecified
NSW Government health boost and economic stimulus
Gaming tax deferral
Deferral of gaming tax for relevant businesses which retain staff
  • 6-month deferral of gaming tax obligations for clubs, pubs and hotels and the lotteries tax
Businesses such as clubs, pubs, hotel and lotteries, conditional on the businesses using the funds to retain staff
NSW Government Second stimulus package
Deferral of parking space levy
Deferral of the parking space levy
  • 6-month deferral of the parking space levy for business which are required to pay
Businesses which own an off-street parking space and is subject to the parking levy
NSW Government Second stimulus package
Tenant relief for Government-owed properties
Rent relief for commercial tenants of Government-owned properties
  • 6-month rent relief for commercial tenants with <20 employees
Businesses with tenancy in Government-owned properties with <20 employees
NSW Government Second stimulus package

Queensland

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Payroll tax relief for small business
Payroll tax relief measures for eligible SMEs Explanation
  • Option for businesses to defer all payroll tax payments for the 2020 calendar year
  • 2-month refund of payroll tax
  • Three-month payroll tax holiday
Refund is for the November 2019 and December 2019 payroll tax returns Holiday is for January 2020 to March 2020 returns
All QLD employers which pay <$6.5m in annual Australian taxable wages
Queensland Government joint statement
Payroll tax relief for large business
Payroll tax relief measures for eligible large businesses
  • Option to defer all payroll tax for the 2020 calendar year
  • 2-month refund of payroll tax
Refund is for January 2020 and February 2020 payroll tax returns
Large businesses which are affected by COVID-19 and who pay >$6.5m in annual Australian taxable wages Being affected by COVID-19 refers to the negative impact
Queensland Government: Payroll tax relief Q&A

Queensland Government: Coronavirus payroll tax relief
$500m interest-free loan facility
Creation of a new $500m loan facility, interest-free for the first 12 months to support eligible businesses
  • Provision of loans up to $250,000 with an initial 12-month interest-free period
Expressions of interest open
Further details available at the end of the week
Queensland Government joint statement

Information on concessional loans
Immediate industry support package
$27.35m support package to provide relief to affected QLD industries
  • Support for SME’s and exporters through a $1.1m initiative providing exporting and expert advice
  • Industry support through resilience grants to fisheries
  • Waiver of fees for liquor licence changes for hospitality businesses
  • $1m available for student support services to assist students returning to study
  • Waiver of inbound tour operator fees and commercial activity agreements for tourism operators
  • 100% rebate on marina fees for marina commercial operators and rent relief for marina tenants
Eligible industry-affected businesses
Queensland Government: immediate industry support package

13QGov (13 74 68)

Queensland Government: Business and industry support
Small business electricity rebate
Electricity rebate for eligible SMEs
  • $500 rebate off energy bills to be automatically applied
Applied to next bill
SMEs who consume <100,000 kilowatt hours
Queensland Government: Electricity relief Q&A

Western Australia

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Payroll tax threshold increase
Increase to the payroll tax threshold in 2020-2021
  • Threshold limit raised from $950,000 to $1m
From 1 July 2020
All business which employ
Government of Western Australia: COVID-19 economic response
Payroll tax (Replaced the previously announced payroll tax deferral announcement)
Allows SME’s to waive payroll tax payments
  • 4-month payroll tax waiver for the period 1 March 2020 to 30 June 2020
Available until 30 June 2020
Businesses with annual Australian taxable wages of <$7.5m or group’s wages of <$7.5m
Government of Western Australia: Second economic package
One-off grant to payroll tax paying businesses
One-off grant to eligible businesses
  • Payment of $17,500
Grants will be paid from July 2020
Businesses with annual Australian taxable wages of between $1m and $4m. Same for groups
Government of Western Australia: COVID-19 economic response
Electricity credit
One-off credit available to Synergy and Horizon customers to reduce electricity bills
  • One-off credit of $2,500 to eligible customers
Available from May 2020
Customers of Synergy and Horizon at 31 March 2020, which consume <50 megawatt hours per annum
Government of Western Australia: Second economic package
Licence fee waiver
Waiver of licence fees for SMEs in COVID-19-affected industries for 12 months
  • $100.4m committed to a range of affected industries
  • Waiver and refund of liquor licence renewal fees
Businesses which pay licence fees in building services, plumbers and electricians, marine tourism, boat registration, fishers, taxi booking etc.

Businesses paying liquor licence renewal fees
Government of Western Australia: Second economic package
Interest-free payment arrangements
Interest-free payment arrangements and penalty waivers
  • • Businesses impacted by COVID-19 can apply for interest-free payment arrangements
  • Waiver of late payment penalties for payroll tax, transfer duty, landholder duty, vehicle licence duty or land tax
Businesses impacted by COVID-19
Government of Western Australia: Second economic package
Utility continuation
Continuation of power and water connections for COVID-19 affected businesses
  • Small businesses facing financial difficulty will not have their power or water disconnected for late payment
  • No interest will be charged on deferred bill payments
Small businesses
Government of Western Australia: Second economic package

Tasmania

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Support for primary and mental health sectors
Assistance for health care workers
  • $2m committed in additional support for primary health care workers
  • $1m committed for accommodation for frontline workers
  • $1m committed for mental health programs for individuals suffering as a result of the crisis
Primary and frontline health workers, individuals' experiences COVID-19 mental health difficulties
Tasmanian Government: support & stimulus package
Interest-free loans for small business
Interest-free loans to small businesses to purchase equipment or restructure operations
  • $50m in interest-free loans to small businesses in hospitality, tourism, seafood production and export sectors
  • Unsecured loans of $20,000 to $250,000 to support business continuity
5-year loans. Three years interest-free, then charged interest at State Growth’s commercial loan interest rate for the following year two years
Tasmanian businesses with turnover of <$10m

Businesses in hospitality, tourism, seafood production and export sectors

Other businesses which can demonstrate the material impact of COVID-19

Businesses must show financial viability prior to COVID-19 and have a satisfactory credit history
Tasmanian Government: Small business loan support package

Tasmanian Government: Social and economic support package
Payroll tax waiver
Waiver of payroll tax for businesses in affected industries
  • Waiver of payroll tax liabilities for the entire 2019-2020 year for businesses in hospitality, tourism or seafood production
  • Other business with payroll of up to $5m can apply for a waiver for the entire 2019-2020 year
2019-2020 year for industry eligible businesses

2019-2020 year for other approved businesses
Businesses in hospitality, tourism, seafood production

Other businesses with payroll of up to $5m
Tasmanian Government: Social and economic support package
Government maintenance program
Program to fast track the maintenance of public buildings
  • $50m committed to maintenance of public buildings over the next 12 months
Available for the next 12 months
Public buildings
Tasmanian Government: support & stimulus package
Other assistance available to small business
Various assistance measures
  • Reduction in payment terms by Government agencies reduced to 14 days to improve cash flows
  • $5,000 grants for businesses which hire apprentices and trainees in the tourism, hospitality, building and construction and manufacturing industries
  • Payroll tax rebate for one year for businesses which employ an individual aged 24 years old or younger from April 2020 to December 2020
  • $3,000 available to eligible individuals to gain skills to become job ready. Businesses will then have a job-ready pool of workers to meet immediate needs
  • Digital Ready for Business program - $150,000 committed to assist businesses in going online
  • Businesses continuity and cashflow advisory program and counselling
  • Business vehicle registration savings and deferrals
Tasmanian Government: support & stimulus package

Tasmanian Government: Business vehicle registration relief

Tasmanian Government: Social and economic support package
Targeted industry assistance
Assistance packages for the tourism, hospitality and fishery industries
  • Waiver of leases, licenses and parks’ entry fees
  • 50% discount on liquor license fees and waiver of application fees for the 2020 calendar year
  • Seafood and fishery support
  • Creative and cultural industry support
  • Waiver of taxi licence fees
Businesses in hospitality, tourism, fisheries
Tasmanian Government: support & stimulus package

Tasmanian Government: Social and economic support package
Government fees and charges
Freezing, waiving or capping of fees and charges for small businesses
  • Water and electricity bills for the first quarter for certain small business customers will be waived
  • Electricity prices capped and water prices frozen for the next financial year
  • Freeze to all charges subject to the Government Fee Units Act 1997
  • Waiver of the roads component of motor tax and vehicle registration by COVID-19-affected businesses
  • Waiver of land tax for commercial property owners for 2020-2021
Tasmanian Government: Social and economic support package

South Australia

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
$350m infrastructure package
Details of the package yet to be released
  • Funds committed for current infrastructure projects, road maintenance, housing, tourism and health
To be announced
To be announced
South Australian Government: Stimulus announcement
Payroll tax waiver
Waiver of payroll tax for eligible businesses
  • 6-month waiver of payroll tax for businesses with grouped annual payroll up to $4m
April 2020 to September 2020
All businesses with grouped annual payroll up to $4m
South Australian Government: Stimulus announcement
Payroll tax deferral
Deferral of payroll tax for eligible businesses
  • 6-month deferral of payroll tax for businesses with grouped annual payroll >$4m
April 2020 to September 2020
All businesses with grouped annual payroll of >$4m, which can demonstrate significant cash flow impacts of COVID-19
South Australian Government: Stimulus announcement
Land tax relief
Relief from land tax obligations
  • $6-month deferral of land tax for businesses with outstanding quarterly bills for FY20
  • Increase in the FY21 Land Tax Transitions Fund from 50% to 100%
Last two quarters of FY20
Businesses which are required to pay land tax Businesses which meet the existing relief criteria of the Land Tax Transition Fund
South Australian Government: Stimulus announcement
Waiver of liquor licence fees
Waiver of liquor licence fees for businesses affected by COVID-19 prevention measures
  • Waiver of liquor license fees for 2020-2021 for eligible businesses
2020-2021
Hotels, restaurants, cafes and clubs which have been forced to close as a result of social distancing restrictions
South Australian Government: Stimulus announcement
Payroll tax waiver
Support for affected businesses and industries to prevent potential collapse
  • $300m committed in support
Details yet to be announced
South Australian Government: Stimulus announcement

Victoria

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Payroll tax refunds
Full payroll tax refunds for FY20 for SMEs
  • Refund in full for payroll tax during FY20
Available now
SMEs with payroll of <$3m
Victorian Government: Media release
Payroll tax deferral
Allows SME’s to defer payroll tax payments
  • Deferral of any payroll tax for the first three months of FY21
Until 1 January 2021
SMEs
Victorian Government: Media release
Rent relief and land tax deferral
Rent relief for commercial tenants in government buildings and deferral of land tax payments for eligible SMEs
  • Commercial tenants of government buildings can apply for rent relief
  • Deferral of land tax payments for SMEs during 2020
SMEs
Victorian Government: Media release
Business support fund
Fund to support severely affected sectors
  • $500m committed to establishing a fund to support affected businesses in the hospitality, tourism, accommodation, arts and retail industries
Businesses which operate in the hardest hit sectors
The government will work with a number of organisations to administer the fund

Victorian Government: Media release

Australian Capital Territory

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Payroll tax deferral
Allows SME’s to defer payroll tax for FY21 until 1 July 2022
  • Deferral of payroll tax for FY21, interest free until 1 July 2022
  • Eligible businesses are required to make normal lodgements, however payment will be deferred
Applications open soon
All ACT businesses with Group Australia-wide wages of <$10m
Online application soon to be available

ACT Government: Local business and industry
Payroll tax waiver for eligible businesses
Waiver of April 2020 to September 2020 payroll tax for eligible affected businesses
  • 6-month waiver of payroll tax for businesses in the hospitality, creative arts and entertainment industry
Applications open soon
Businesses in the hospitality, creative arts and entertainment industry
ACT Government: Local business and industry
SME electricity rebate
One-off electricity rebate for eligible SMEs
  • $750 rebate for the next electricity bill
SMEs with electricity usage below 100 megawatts
ACT Government: Local business and industry
Vocational education and training support
Increasing VET subsidies
  • Increase in subsidies for apprenticeships and traineeships and other VET students
VET RTOs
Subsidies provided directly to an RTO. No application required

ACT Government: Local business and industry
Other business assistance
Additional measures to local business and industry
  • Additional payment of $1.5m in addition to the existing $1.8m for ACT Community Clubs
  • Waiver of license fees and dining fees for hospitality businesses
  • Waiver of rideshare vehicle license fees for 12 months
  • Credit of the annual fixed charge for eligible commercial property owners
  • Businesses advice and support services
  • $20m commitment to fast track infrastructure projects on government buildings and suburb maintenance
ACT Government: Local business and industry

ACT Government: Keeping Canberrans employed

Northern Territory

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Business improvement grant
Grants available to businesses to make permanent physical improvements
  • $10,000 payment, followed by an additional $10,000 for businesses which contribute $10,000 of their own funds
Registration available 30 March 2020
Northern Territory enterprise, employing NT residents
Factsheet: Business improvement grant
Immediate work grant
Access to grants of up to $100,000 to not-for-profit or community organisations to make permanent physical improvement to land or buildings
  • Initial $50,000 payment, followed by a co-contribution from for every dollar spent by the businesses up to a maximum of $100,000 in total contributions
Business registrations available 30 March 2020

Not-for-profit registrations available 20 April 2020
Northern Territory enterprise or not-for-profit, employing NT residents
Factsheet: Immediate work grant
Payroll tax exemption
Temporary payroll tax exemption for businesses with NT employees
  • Extension of the payroll tax exemption scheme to 1 July 2021 for eligible businesses
Available
Businesses with wages paid to a NT resident
Northern Territory Government: Payroll tax
Other business assistance
Additional measures
  • Support for local tourism, hospitality and retail operators
  • Freeze on increases to government fees and charges
  • Fast tracked infrastructure program
  • Small business champion support
Northern Territory Government: Jobs Rescue and Recovery

New Zealand

New Zealand Government

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Wage subsidy scheme
Wage subsidy for eligible businesses
  • $585.80 for people working 20 hours or more per week
  • $350.00 for people working <20 hours per week
  • Subsidy paid as lump sum covering 12 weeks per employee
  • Maximum subsidy is $150,000 per business
Immediately
NZ-registered business with NZ-based employees

Businesses must be experiencing a minimum decline of 30% in actual or predicted revenue related to COVID-19 and must have taken steps to mitigate the effects

Businesses must be retaining employees and paying a minimum of 80% of their normal income
New Zealand Government: Wage subsidy and leave payment

Fact Sheet: Wage subsidy scheme
Provisional tax threshold increase
Increase to provisional tax threshold to reduce cash-flow pressure on businesses
  • Provisional tax threshold will increase from $2,500 to $5,000
From 1 April 2020
All businesses
Inland Revenue: COVID-19 business continuity package

Fact Sheet: Business cashflow and tax measures factsheet
Small asset depreciation threshold
Increase to the small asset depreciation threshold
  • Increase in the threshold from $500 to $100 and to $5,000 for the next financial year
Inland Revenue: COVID-19 business continuity package

Fact Sheet: Business cashflow and tax measures factsheet
Other business stimulus measures
  • Allowing depreciation on commercial and industrial buildings from 2020/2021
  • Removing the hours test from the In-Work Tax Credit from 1 July
  • $600m initial aviation support package
  • $500m health package
  • Proposal to write-off use-of-money interest
Inland Revenue: COVID-19 business continuity package

Fact Sheet: Business cashflow and tax measures factsheet

New Zealand Government: Stimulus package annoucement

United Kingdom

United Kingdom Government

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Job Retention Scheme
Supporting businesses continuing to employ by paying part of employee salaries for employees that would have otherwise been laid off
  • Reimbursement of 80% of furloughed workers’ wage costs up to a cap of £2,500 per month
  • employees must first be designated as “furloughed workers”
Reimbursement system set up in progress
All UK businesses
UK Government: COVID-19 support for business
Deferral of VAT and Income Tax Payments
Deferral of VAT payments for three months for all businesses and deferral of income tax payments for those who are self-employed
  • VAT – deferral for the period 20 March 2020 to 30 June 2020
  • Income tax – deferral of payment due 31 July 2020 to 31 January 2021
VAT – 20 March 2020 until 30 June 2020

Income tax – payment not due to 31 January 2021
VAT – all UK businesses

Income Tax – self-employed
UK Government: COVID-19 support for business
Sick pay support
Allows SME employers to reclaim statutory sick pay for sickness absence due to COVID-19
  • Refund for up to 2 weeks SSP per eligible employee, who has claimed SSP as a result of COVID-19
Commences the day after the regulations on the extension of SSP comes into force.

Repayment mechanism will be set up
Employer is an SME and employs fewer than 250 employees as of 28 February 2020
Isolation note through NHS111 Online https://111.nhs.uk/covid-19

UK Government: COVID-19 support for business
Rates holiday for businesses in multiple sectors
Business rates holiday period for businesses in retail, hospitality, leisure and nurseries sectors for the 20/21 tax year
  • Holiday period for eligible businesses
  • Businesses that received the retail discount in the 19/20 tax year will be rebilled
Applies to next council tax bill in April 2020
Businesses based in England that operate in the retail, hospitality and leisure sector

Businesses based in England that operate in nurseries
UK Government: COVID-19 support for business
Retail and Hospitality Grant Scheme
Cash grants for businesses in the retail, hospitality and leisure sectors
  • Cash grants of up to £25,000 per property
  • For businesses with a rateable value of <£15,000, they will receive £10,000
  • For businesses with a rateable value between £15,001 and £51,000, they will receive £25,000
Local authority will contact each business shortly
Businesses based in England that operate in the retail, hospitality and leisure sector
UK Government: COVID-19 support for business
Small Business Grant Scheme
Additional funding for local authorities to support small businesses that already pay reduced or no rates
  • One-off grant to eligible businesses to assist ongoing business costs
Local authority will contact
Small businesses based in England which already receive small business rate relief, rural rate relief or tapered relief
UK Government: COVID-19 support for business
Business Interruption Loan Scheme
Loan scheme provided by the British Business Bank to support SMEs to access bank lending and overdrafts
  • Government will guarantee 80% on each loan (subject to a per-lender cap on claims)
  • No fee to the business or banks and the interest will be paid by the government for the initial 23 months
  • Loans will be up to £5m and will be unsecured up to £250,000. For loans above £250,000, the lender must establish a lack or absence of security
Week commencing 23 March 2020
UK-based businesses with annual turnover of <£45m. Businesses must submit a proposal which would be considered viable to trade out of a short-to-medium term difficulty, were it not for COVID-19
British Business Bank: CBILS

UK Government: COVID-19 support for business
Corporate financing facility for large businesses
Short term debt support for larger companies to meet short-term liabilities
  • Short-term debt to bridge the gap to short-term liabilities
  • Support for the corporate finance markets overall to ease the supply of credit
Week commencing 23 March 2020
All UK businesses
Facility - Bank of England: CCFF

UK Government: COVID-19 support for business
Time to Pay Scheme
Case-by-case support in paying down tax liabilities for businesses in financial distress
  • Support in assisting business meet their tax liabilities
Contact before next payment is due
Businesses which have outstanding tax liabilities owed to the UK government
UK Government: COVID-19 support for business

Philippines

Department of Trade and Industry

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Pondo sa Pagbabago at Pag-Asenso (P3)

Microfinancing special loan package
Php1.0b assistance for MSMEs affected (directly or indirectly) by COVID-19
  • Borrowing cost at no more than 2.5% per month all in interest rate and service charges
  • Assistance in finding new supply sources and non-traditional markets for industries affected by supply chain disruptions
  • Conduct of trade and investment missions to support the continued operation of the industry
Micro enterprises with asset size not exceeding Php3.0m
Pondo sa Pagbabago at Pag-Asenso (P3)

Gov’t economic team package vs COVID-19 pandemic
Government Financial Institutions
Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Development Bank of the Philippines’ Rehabilitation Support Program on Severe Events (RESPONSE)
Rehabilitation financing support to public and private institutions affected by COVID-19
  • Provision of low-interest loans under a simplified application procedure of the Development Bank of the Philippines
Public and/or private institutions located and/or operating in areas affected by COVID-19
DBP Rehabilitation Support Program on Severe Events
LANDBANK Calamity Rehabilitation Support (LBP CARES)
Financial assistance program for public and private institutions affected by COVID-19
  • Restructured loan amortizations through longer tenor and grace periods, with the option of a fixed interest rate
Local government units, small and medium enterprises, cooperatives, non-government organizations, and financial institutions
Gov’t economic team package vs COVID-19 pandemic

Government Financial Institutions

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Temporary and rediscounting relief measures for financial institutions
Encourage BSP supervised financial institutions (BSPFIs) to grant a temporary grace period for loan payments or restructure loan accounts of their borrowers
  • Regulatory relief measures available to supervised institutions: (i) exclusion from the past due loan ratio of loans to affected borrowers for a period of one (1) year, and (ii) staggered booking of provision for probable losses over a period of five (5) years, subject to prior approval of the BSP
One (1) year from 8 March 2020
BSP supervised financial institutions that extend loans and credits to affected customers
BSP will not impose monetary penalties on the delayed submission of their supervisory reports and on legal reserve deficiencies

BSP Action on COVID-19
30-day grace period to all loans
Mandatory grace period for all loans
  • Borrowers whose loan/s with principal and/or interest falling within the Enhanced Community Quarantine (ECQ) period shall be entitled to avail 30-day grace period without incurring interest on interest, penalties, fees and other charges
Loans shall apply to all loans extended to individuals, MSMEs, corporate borrowers and other counterparties
Accrued interest for the grace period may be paid on staggered basis over the remaining life of the loan

Implementing Rules and Regulations announcement

Bureau of Internal Revenue

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Revenue Memorandum Circular No. 27-2020
Extension for the filing of applications for VAT refund and 90-day processing period
  • Option for businesses to defer VAT refund applications to 30 April 2020
  • The 90-day period of processing VAT refund claims is suspended in accordance with the “community quarantine”
Due date is extended from 31 March 2020 to 30 April 2020 for VAT refund applications
Revenue Memorandum Circular No. 27-2020
Revenue Memorandum Circular No. 28-2020
Extension of the existing Annual Income Tax Returns scheme
  • Option for businesses to defer payment of Annual Income Tax Returns to 15 May 2020
Due date is extended from 15 April 2020 to 15 May 2020
To be announced
Revenue Memorandum Circular No. 28-2020
Revenue Regulations No. 6-2020
Various tax exemption provisions
  • Option for businesses to defer payment of Annual Income Tax Returns to 15 May 2020
  • The importation of critical or needed healthcare equipment or supplies intended to combat COVID-19 shall be exempt from VAT, excise tax, and other fees
  • The importation of materials needed to make health equipment and supplies shall also be exempt from VAT, excise tax and other fees provided that the importing manufacturer is included in the master list of the DTI and other incentive granting bodies
  • Donations of the above-mentioned imported articles to the National Government or any non-profit entity created by any of its agencies, or to any political subdivision are exempt from donor's tax and subject to ordinary rules on deductibility
During three month effectivity of Bayanihan to Heal as One Act, unless extended or withdrawn by Congress
Revenue Regulations No. 6-2020
Department of Transportation
Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
Deferral of charges and fees for the airline industry
Civil Aviation Authority of the Philippines (CAAP) and the Manila International Airport Authority (MIAA) to defer charges and fees of local airlines to cushion the impact of COVID-19 in the airline industry
  • Deferral of payment for take-off, landing, and parking fees
Over a year of deferment and over a year of payment (or as prescribed by the Department of Transportation
Local airlines
CAAP, MIAA to defer charges and fees of local airlines

Private Enterprises

Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
MERALCO’s 30-day bills payment extension
Bills payment will be given a 30-day payment extension
  • Option for businesses to defer bills payment to 30 April – 14 May 2020
    Due date is extended from 1 March – 14 April 2020 to 30 April – 14 May 2020
    Private institutions under MERALCO’s franchise
    Businesses extending payment deadlines amid enhanced community quarantine vs COVID-19
    AboitizPower distribution units’ 30-day bills payment extension
    Bills payment will be given a 30-day payment extension
    • 30-day payment extension for bills due on 15 March to 14 April 2020
    Private institutions under the following franchise: Visayan Electric Co. Inc. (VECO), Davao Light & Power Co., Cotabato Light & Power Co., and Subic EnerZone
    Aboitiz group offers COVID19 ‘lifeline’
    Manila Water’s 30-day bills payment extension
    Bills payment will be given a 30-day payment extension
    • Option for businesses to defer bills payment to 30 April – 14 May 2020
    Due date is extended from 1 March – 14 April 2020 to 30 April – 14 May 2020
    Private institutions
    Businesses extending payment deadlines amid enhanced community quarantine vs COVID-19
    Maynilad Water Services’ 30-day bills payment extension
    Bills payment will be given a 30-day payment extension, and disconnection activities will be suspended
    • Option for businesses to defer bills payment to 30 April – 14 May 2020
    • Disconnection activities will be suspended until 14 April 2020
    Due date is extended from 1 March – 14 April 2020 to 30 April – 14 May 2020
    Private institutions
    Businesses extending payment deadlines amid enhanced community quarantine vs COVID-19
    30-day waiver of rental fees of Robinsons Land Corp.
    Rental fees will be waived for all non-operational tenants of its malls
    • Option for businesses to defer rental fees from 16 March 2020 to 14 April 2020
    Payment for rental fees is deferred from 16 March 2020 to 14 April 2020
    Non-operational tenants of Robinsons Land Corp. in Luzon
    Malls waive rental fees amid Luzon lockdown
    30-day payment extension of Ayala Corp., Filinvest Development Corp., Megaworld Corp., and SM Group
    Rental fees will be waived for all the tenants of its malls
    • Option for businesses to defer rental fees from 16 March 2020 to 14 April 2020
    Payment for rental fees is deferred from 16 March 2020 to 14 April 2020
    Tenants of Ayala Corp., Filinvest Development Corp., Megaworld Corp., and SM Group in Luzon
    Malls waive rental fees amid Luzon lockdown

    Vietnam

    Vietnam

    Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
    Delay of tax payments and land use fees
    Delayed tax payments to support enterprises suffering material damage due to COVID 19 pandemic
    • Draft decree to delay tax payments for 5 months, including delay in the collection of land use fees
    Until 31 October 2020
    Intended for businesses impacted by COVID-19 in agriculture, textiles, footwear, automotive, aviation, electronics, food processing, and tourism among others
    Decree is currently being drafted and will be submitted to the government for approval.

    Ministry of Finance (MOF)
    Extension of Preferential Terms from Credit Institution
    Provision of US$12.4b in preferential credit to affected businesses through waiving of relevant fees, and restructuring of credit facilities
    • The State Bank of Vietnam has issued a legal framework for commercial banks to offer preferential terms to enterprises affected by COVID-19
    Case-by-case basis
    Firms who have outstanding balances from financial institutions can approach their respective banks to avail better terms
    State Bank of Vietnam

    Thailand

    Thailand

    Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
    Extension of low interest loans by Government Savings Bank
    Provision of low interest credit to affected enterprises
    • THB150.0b of soft loan through the Government Savings Bank at 2% interest for two years, with no more than THB20.0m loan for each entrepreneur
    Two years
    Measures to aid and relieve the impact of the COVID-19 Phase 1 (The Ministry of Finance, Thai language)
    Extension of low interest loans through Social Security Office (SSO)
    Provision of low interest credit to affected enterprises
    • THB30.0b of lending with 3% interest rate for three years
    Three years
    Entrepreneurs registered with the SSO
    Measures to aid and relieve the impact of the COVID-19 Phase 1 (The Ministry of Finance, Thai language)
    Debt relief package for enterprises negatively affected by COVID-19
    Moratorium on principal payments, debt payments extension, and the right to borrow from special financial institutions
    • Moratorium on principal payments, debt payments extension, and the right to borrow from special financial institutions such as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives
    Travel and tourism companies, and SME's are the primary focus of attention for relief measures
    Measures to aid and relieve the impact of the COVID-19 Phase 1 (The Ministry of Finance, Thai language)
    Withholding Tax Reduction
    Measure to boost liquidity for entrepreneurs by reducing withholding tax
    • From April to September 2020, rate will be reduced to 1.5% from 3%. From October to December 2020, rate will be at 2%
    April to December 2020
    Individuals, companies, and juristic partnerships
    Measures to aid and relieve the impact of the COVID-19 Phase 1 (The Ministry of Finance, Thai language)
    Tax deduction of 1.5x interest expenses
    Measure to reduce interest payment burdens
    • Enterprises with low-interest loans (soft loans) can claim a tax deduction for 1.5x the interest expense paid
    April to December 2020
    Company with taxable income of not more than THB500.0m from its business in the last 12-month accounting period, and must have not over 200 employees
    Company must register with the Revenue Department under the procedures set out for a tax amnesty
    Tax deduction for 3.0x the wage expenses
    Measure to promote stable employment by additional tax deduction
    • 3x deduction of expenses incurred by salary payments for SMEs that do not lay off employees or reduce staff
    April 2020 to July 2020
    Company with taxable income of not more than THB500.0m in the last 12-month accounting period must not have over 200 employees, must retain those employees who are registered with the SSO whose monthly wages are not be over THB15,000, and whose number of current employees must not be lower than that in December 2019
    Measures to aid and relieve the impact of the COVID-19 Phase 1 (The Ministry of Finance, Thai language)
    Value Added Tax (VAT) Refund
    Tax refund to support exporters
    • VAT refund for exporters will be provided earlier
    Exporter of goods as defined in Departmental Regulation Tor.490/2562 which has capital of over THB10.0m
    Measures to aid and relieve the impact of the COVID-19 Phase 1 (The Ministry of Finance, Thai language)
    Tax Exemption on Donations
    Tax exemption package to support enterprises donating goods for COVID-19
    • Deduction of expenses for donations for COVID-19
    March 2020 to March 2021
    Individuals, companies, and juristic partnerships that make a donation electronically to the Office of the Permanent Secretary, Prime Minister’s Office
    Measures to aid and relieve the impact of the COVID-19 Phase 1 (The Ministry of Finance, Thai language)
    Other measures for public SME's
    Easing cash burden of utilities expense of affected enterprises
    • Delayed payments to utilities, social security, and state enterprises
    Measures to aid and relieve the impact of the COVID-19 Phase 1 (The Ministry of Finance, Thai language)

    Singapore

    Inland Revenue Authority of Singapore

    Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
    Corporate Income Tax (CIT) Rebate
    Help enterprises with cashflow through CIT Rebate of 25% of tax payable
    • Capped at $15,000 for Year of Assessment (YA) 2020
    2020
    Includes registered Business Trusts, non-resident companies that are not subject to a final withholding tax and companies that receive income taxed at a concessionary tax rate
    Corporate Income Tax (CIT) Rebate for YAs 2013 to 2020
    Jobs Support Scheme (JSS)
    To help enterprises retain their local employees
    • Employers will receive an 8% cash grant on the gross monthly wages of each local employee for the months of October 2019 to December 2019, subject to a monthly wage cap of $3,600 per employee
    It is a temporary scheme for 2020; JSS payment will be released 31 July 2020
    All employers who have made CPF (Central Provident Fund) contributions for their resident employees
    Jobs Support Scheme
    Enhancement to Wage Credit Scheme
    To continue encouraging enterprises to invest in raising productivity of their workers by co-funding wage increases
    • Government co-funding ratios for wage increases in 2020 will be raised from the current 10% to 15%. The qualifying gross wage ceiling will also be raised to $5,000, up from the current $4,000
    2020
    Employers do not need to apply for Wage Credit. Wage Credit will be automatically paid to eligible employers annually, based on the CPF contributions that they make for their employees
    Wage Credit Scheme
    Wage subsidy (enhancement on JSS
    Firms will receive wage subsidies of between 25% and 75% for all local workers
    • Total of $15.1 billion to subsidize 25% of wage for all Singaporean and permanent resident employees, 50% for firms in the food services sector, and 75% for firms in the aviation and tourism sectors
    • Support will apply to the first $4,600 of gross monthly wages per local employee.Business owners will not receive subsidies for their own wages
    April 2020 to December 2020
    All employers
    Govt to subsidise wages of all local workers by at least 25% amid Covid-19 outbreak
    3-month deferral of income tax payments
    Deferment on income tax payments to ease immediate cash flow concerns
    • all companies with corporate income tax payments due in April, May and June will be granted an automatic three-month deferral, and the payments will be collected from July instead
    2020
    Businesses and self-employed persons
    3-month deferral of income tax payments for businesses, self-employed
    Enhancements of Tax Treatments under the Corporate Tax System
    Automatic extension of interest-free instalments of 2 months for payment of CIT on Estimated Chargeable Income (“ECI”) filed within 3 months from the companies’ financial year-end (“FYE”)
    • Companies paying their CIT by GIRO can automatically enjoy an additional 2 months of interest-free instalments
    19 February 2020 to 31 December 2020
    Companies that file their ECI from 19 February 2020 to 31 December 2020

    Companies that file their ECI before 19 February 2020, and have ongoing instalment payments to be made in March 2020
    Filing Estimated Chargeable Income (ECI) and Paying Estimated Taxes
    Enhancements of Tax Treatments under the Corporate Tax System related to various capital investment
    Encourage businesses to continue investing by easing their cash flow on such investments
    • Allow the unabsorbed capital allowances (CA) and trade losses for YA2020 to be carried back up to three immediate preceding YAs, instead of one preceding YA
    • Option to accelerate the write-off of the cost of acquiring plant and machinery
    • Option to accelerate the deduction of expenses incurred on renovation and refurbishment
    2020 to 2021
    Loss Carry-Back Relief

    Write-off over Two Years

    Renovation or Refurbishment Works Expenditure
    Property Tax (“PT”) Rebate for Qualifying Commercial Properties
    Grant PT rebate to provide tax savings
    • 10% to 15% tax rebate
    1 January 2020 to 31 December 2020
    Licensed hotels, serviced apartments, prescribed Meetings, Incentive, Conferences and Events (“MICE”) venues, and other qualifying commercial properties
    IRAS e-Tax Guide

    Other Government Agencies of Singapore

    Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
    Enterprise Singapore’s Temporary Bridging Loan Programme for Tourism Sector Enterprises
    Loan program to provide additional cash flow support for tourism sector enterprises
    • Loan of up to $1m, with the interest rate capped at 5% p.a., from Participating Financial Institutions
    • The Government will provide 80% risk-share on these loans
    March 2020 to March 2021
    Tourism sector enterprises
    Temporary Bridging Loan for Tourism Sector Enterprises
    Enterprise Singapore’s Enhancements to Enterprise Financing Scheme
    Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL)
    • Government will raise the maximum loan quantum from $300,000 to $600,000, and enhance the Government’s risk-share to up to 80% (from the current 50% to 70%) for SMEs
    March 2020 to March 2021
    Available to SMEs across all industries borrowing from Participating Financial Institutions under the scheme
    Enhanced EFS-WCL
    Support for the tourism sector
    Licence fee waivers and help with cleaning costs
    • Up to 50% of third-party professional cleaning fees, capped at $20,000 per establishment for hotels with confirmed cases; and $10,000 per establishment for hotels with suspected cases
    Applications will open between 10 Feb and 30 April, following which Singapore Tourism Board (STB) will assess the situation to see if further support is required
    Hotels that provided accommodation to suspected and confirmed cases of COVID-19 infections
    Initiative handled by Singapore Tourism Board (STB) under the Ministry of Trade and Industry
    50% Port Dues Concession
    Port dues concession to cruise ships and regional ferries
    • $1m value from 50% port dues concession
    1 March 2020 to 31 August 2020
    Cruise ships and regional ferries with a port stay of not more than five days, and passenger-carrying harbour craft
    Maritime and Port Authority of Singapore
    Support for F&B establishments
    Rent waiver (0.5 to 1.0-month worth of rental) for commercial tenants in government-owned / managed facilities

    These rental waivers will cost $45 million
    • One month’s worth of rental waivers to stall holders of NEA-managed hawker centres and markets, with a minimum waiver of $200
    • Government agencies will provide half a month’s worth of rental waivers
    2020
    Commercial tenants/lessees who are on leases not exceeding three years, and do not pay Property Tax
    Aviation Sector Measures
    $112 million Aviation Sector Assistance Package
    • 15% Property Tax Rebate for Changi Airport
    • Rebates on aircraft landing and parking charges, assistance to ground handling agents, and rental rebates for shops and cargo agents at Changi Airport
    6-month period

    Malaysia

    Central Bank of Malaysia

    Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
    Customer Financial Relief Plan
    Restructuring and rescheduling of loans of genuinely impacted businesses
    • Restructuring or rescheduling loans, including potentially payment moratoriums
    • Banking institutions, TEKUN, MARA, Cooperatives, and government agencies will provide a 6-month loan moratorium
    1 March 2020 to 31 December 2020
    Viable corporate and individual borrowers
    Restructured/rescheduled loan will have stamp duty exemption

    Economic Stimulus Package 2020
    Special Relief Facility
    BNM will release loan for SMEs through commercial banks
    • Initial RM2.0b (US$450m) worth of loans for SMEs with interest rate capped at 3.75% p.a., loan tenure up to 5.5 years including a 6-month payment moratorium and maximum loan size of RM1.0m per SME
    • Additional fund in Special Releif Fund of RM3.0b with interest rate of 3.50% p.a.
    • Increase fund RM1.0b facility for all economic sectors
    • Additional fund of RM500 million under the Micro Credit Scheme through BSN at 2% interest rate without collateral
    • Financing up to RM300,000 to SMEs with businesses less than 4 years under CGC
    6 March 2020 to 31 December 2020
    SMEs
    The Government will provide banks, an 80% guarantee on loans under this facility at a concessionary fee of 0.5% p.a.

    Economic Stimulus Package 2020
    Agrofood Facility (AF)
    Capital accessible for SMEs involved in the food production industry
    • RM1.0b (US$226.0m) loan scheme
    • Tenor of up to 8 years, 3.75% rate p.a. and RM50.0m per SME
    From 6 March 2020 onwards
    SMEs involved in the food production industry
    Measures to Assist Businesses and Households Affected by the COVID-19 Outbreak
    SME digitalization and automation
    Incentivise SMEs to automate processes and digitalise operations to increase productivity and efficiency
    • RM300m (US$68m) in loans for SMEs looking to digitalize or automate their business
    • Eligible SMEs can borrow up to RM3.0m (US$679k) with up 10-year term and 4% rate p.a.
    6 March 2020 to 31 December 2020
    Malaysian SMEs
    Measures to Assist Businesses and Households Affected by the COVID-19 Outbreak

    Other Government Agencies of Malaysia

    Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
    Bank Simpanan Nasional (BSN) Micro Credit Facility
    RM200 million micro-credit scheme for companies in the tourism and other affected sectors
    • RM5,000 to RM50,000 loan with an interest rate of 4%, tenure of 1 year to 5.5 years including first 6 months of moratorium on monthly instalments
    Until 31 December 2020
    Malaysian-owned micro enterprises impacted by the COVID-19
    BSN Micro Stimulus
    Tax exemptions and deferments by Inland Revenue Board of Malaysia
    Deferment of monthly tax instalments and exemption from levying service tax on taxable services
    • Businesses in the tourism industry will be given a deferment of their monthly tax instalments for six (6) months; Accommodation services are exempt from levying service tax
    1 April 2020 to 30 September 2020

    Hotel’s service tax exemption: 1 March 2020 to 31 August 2020
    Businesses in the tourism industry such as travel agencies, hotels, airlines
    Application Form – Deferment of Tax Instalment Payments

    Application Form – Revision of Income Tax Estimation
    Increasing cashflow of employers
    Government support to employers
    • Employer Advisory Services including restructuring and rescheduling employer’s contribution (RM10.0b)
    • Exemption of HRDF levy (RM440.0m)
    • Postponement of income tax instalment payment for SME for 3 months
    1 April 2020 to 30 September 2020
    Categories of business covered: air travel, domestic ground transport, convention centers, shopping malls, travel tour operators, hotels, franchises & hypermarkets
    Economic Stimulus Package 2020
    Electricity Discount
    Special discount on electricity bills of affected businesses
    • 15% special discount on monthly electricity bills for six categories of businesses (hotel operators, travel agencies, local airlines offices, shopping malls, convention centres and theme parks)
    • 2% discount for consumers from the commercial, industrial and agricultural sectors
    1 April 2020 to 30 September 2020
    Various businesses
    Electricity bill discount
    Discount vouchers for tourism
    Discount vouchers funded by government to stimulate domestic tourism
    • RM100 per person funding by government
    Staring March 2020
    Operators of air travel, hotel and resort accommodation booking sites
    Economic Stimulus Package 2020
    Extra funding for skills training
    Government funding support to upskill workers in affected sector
    • Government will provide HRDF with a matching grant of RM100.0m on a one to one basis. The combined fund of RM200.0m is expected to benefit 40,000 workers
    Affected businesses such as hotels, tourism and retail, electrical and electronic and automotive manufacturing
    Economic Stimulus Package 2020
    Funding for start-ups
    Funding for start-ups
    • RM500m (US$113.0m) will be available for early stage and growth stage Malaysian companies
    To be determined
    Early stage and growth stage Malaysian companies
    Economic Stimulus Package 2020
    Other tax incentives
    • Tax deduction for providing employees with disposable Personal Protective Equipment (PPE) such as face masks
    • Capital allowance for expenses for non-disposable PPE products
    • Double deduction on expenses incurred on approved training provided to employees in the tourism sector
    • Sales tax and import duty exemption on equipment and machinery of port operators
    Other benefits
    • Employment Insurance System (EIS) fund will assist retrenched workers, with the fund amounting to RM1.1b. EIS will relax the eligibility criteria for retrenched workers from affected sectors, such as waiving the minimum requirement of three (3) months contribution
    • Securities Commission and Bursa Malaysia will waiver listing fees on the LEAP or ACE market
    • Danajamin Nasional Bhd to provide guarantee scheme of up to 80% of total loans with minimum amount guaranteed at RM20.0m
    Economic Stimulus Package 2020

    Indonesia

    Tax Incentives

    Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
    Reduction of corporate income tax (CIT) by 30%
    Reduction of CIT to help liquidity of businesses
    • (CIT) was reduced by 30% with a total estimated reduction of Rp4.2 trillion (US$260m)
    April to September 2020
    Select businesses(2)
    Government Announcement of Second Economic Stimulus to Address the Impact of COVID-19
    Relaxation of Value Added Tax (VAT) refunds
    Accelerated VAT refund to help liquidity of businesses
    • Total estimated refund of Rp1.97 trillion (US$120m)
    • No limit on the value of special VAT refunds for exporters, while for non-exporters the amount of VAT refunds is set at a maximum of Rp5 billion
    April to September 2020
    Select businesses(2)
    Government Announcement of Second Economic Stimulus to Address the Impact of COVID-19
    Deferral of import tax payments
    Provide cashflow as compensation for switching costs (costs related to changes in the country of origin of imports)
    • Total estimated exemption of Rp 8.15 trillion (US$505m)
    April to September 2020
    Select businesses(2)
    Government Announcement of Second Economic Stimulus to Address the Impact of COVID-19

    Indonesian Government

    Initiative Explanation Action(s) Timeline Eligibility Criteria More Information
    Simplifying and reducing the number of Prohibitions and Restrictions (Lartas) for export activities
    Measure to increase export smoothness and competitiveness
    • Health Certificate and V-Legal documents are no longer a document of export requirements unless required by the exporter
    Government Announcement of Second Economic Stimulus to Address the Impact of COVID-19
    Simplification of import process for raw materials
    Measure to increase the availability of raw materials
    • Lartas measures have been simplified and accelerated to help businesses import raw materials
    Manufacturers of steel products and its derivatives in addition to producers of strategic food items such as sugar, flour, and salt
    Government Announcement of Second Economic Stimulus to Address the Impact of COVID-19
    Assisting reputable traders
    Acceleration of the export and import process of reputable traders
    • Government will assist and quickly approve the license applications for the import and export of goods classified as restricted for ‘reputable traders’
    Companies related to export-import activities that have a high level of compliance
    Government Announcement of Second Economic Stimulus to Address the Impact of COVID-19
    Assisting SMEs through financial sector stimulus
    Financial Services Authority (OJK) has issued countercyclical policies to assist businesses
    • Rules governing loan restructuring for SMEs will be eased allowing local banks to restructure loans regardless of credit ceiling limits
    • SMEs are eligible for loans of up to Rp10 billion (US$655,000)
    SMEs with good credit history and have the capacity to pay back the loan
    Financial Services Authority (OJK) new stimulus

    Government Announcement of Second Economic Stimulus to Address the Impact of COVID-19
    Capital Market Incentives
    Measure to reduce the negative impact of the Covid-19 virus on the stock exchange
    • Allows all issuers to buy back shares without the mechanism of the General Meeting of Shareholders (Rapat Umum Pemegang Saham/RUPS)
    Incentives for the tourism and airline industries
    • Waiver of taxes for hoteliers and restaurants located in the 10 promoted destinations for the next six months
    • State-run oil company PT Pertamina will give discounts on jet fuel equivalent to Rp265 billion (US$18 million) at nine airports to support airlines provide the 30% airfare discounts
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