extension of nuisance premium and additional compensation premium

Tax & Legal
15 June 2020

by Veerle Cool

Extension of nuisance premium and additional compensation premium

This week, the Flemish Government decided to extend the duration of the corona nuisance premium for entrepreneurs who have been obliged to keep their business closed for a while longer. An additional compensation premium will also be paid to entrepreneurs who have suffered a large loss of turnover.

Extension of nuisance premium and additional compensation premium

Extension of the corona nuisance premium after 12 June

The Flemish Government has decided that the term of the corona nuisance premium will be extended for businesses that have been obliged to remain closed. This premium normally ended on 12 June.

This means that the daily premium of 160 euro per additional day of closure will continue to apply for this group of entrepreneurs. Concretely, the extension of the premium applies to:

  • wellness centres and saunas
  • discos
  • swimming pools
  • amusement parks and indoor playgrounds
  • cinemas
  • funfair operators
  • market stall holders who cannot resume their work due to the limitation of 50 stalls per market.

The premium shall be granted until the Security Council decides that they can reopen their physical locations.

How do I apply for an extension of the corona nuisance premium?

  • For those who have been obliged to stay closed, the daily allowances will continue to be paid automatically.
  • For market stall holders, the daily premiums shall be automatically granted up to and including 17 May. From this date onwards, market stall holders can only claim a daily premium if they can prove by means of a certificate (issued by the local authorities) that they are not yet able to return to work due to the decisions taken by the local authorities. 

Additional compensation premium for major loss of turnover

In addition to the compensation premium of 3,000 euro for a loss of turnover of at least 60% in the period from mid-March to the end of April, the Flemish Government is now also providing an additional corona compensation premium of 2,000 euro for businesses that are seeing the impact of the corona measures on their turnover continue.
Both businesses that were already eligible for the initial compensation premium and businesses that previously benefited from the nuisance premium are entitled to it. The condition is that there is a loss of turnover of at least 60% over a clearly defined period:

  • For those who were previously eligible for the corona nuisance premium, it refers to a period of 1 month from the reopening compared to a similar reference period last year:
    • for shops: the period from 11 May to 11 June
    • for the catering sector: period from 8 June to 8 July

  • For those who were able to remain open and possibly applied for a compensation premium earlier, we are assuming for the time being that the reference period will be in line with that of the previous compensation premium, probably from 1 May up to and including 30 May. However, this period has not yet been officially announced.

How do I apply for the additional compensation premium?

It is not yet possible to apply. The Flemish Agency for Innovation and Entrepreneurship (VLAIO) is currently working on the application procedure.