PHIL

BUSINESS WAGE
SUBSIDY (SBWS)
PROGRAM

UPDATED AS OF JUNE 24, 2020

The national government is providing a wage subsidy for affected employees
of small businesses to help mitigate the impact of the quarantine in Luzon
and various local government units. This wage subsidy shall be given for up
to two months so that affected small businesses are able to retain their
employees during the quarantine period.

Under the Small Business Wage Subsidy (SBWS) measure, the government,
through the Social Security System (SSS), shall provide a wage subsidy of
between 5,000 to 8,000 pesos (based on the regional minimum wage) per
month per eligible employee.

Applications will be completed by the employer on behalf of their employees.

The Social Security System (SSS) will only be accepting applications from
April 16, 2020 to May 8, 2020.
ELIGIBILITY CRITERIA
FOR SMALL BUSINESSES
The business must meet two eligibility criteria: size of business and impact of
the enhanced community quarantine (ECQ) on the small business’
operations. The small business must meet both criteria.

Businesses that have been compliant with the regulations of the Bureau of
Internal Revenue (BIR) and SSS will be prioritized.
 Size of business: The small business — whether a corporation,
partnership, or sole proprietorship — must not be in the BIR’s Large
Taxpayer Service (LTS) list.
 Impact of the enhanced community quarantine (ECQ): Small
businesses under both Category A (non-essentials) that are forced to stop
operations (i.e., temporary closure or suspension of work) and Category B
(quasi-essentials) that are allowed to operate a skeleton force can apply
for the wage subsidy for employees who are not able to work and did not
get paid during the ECQ. Employers in areas where other forms of
quarantine have been put in place by the LGU may also qualify.
 The following small businesses will be prioritized:
1. BIR-registered and complying with tax obligations during the past three
years, up to January 2020.
2. SSS-registered and have paid SSS contributions for the past three years
up to January 2020 (the last recorded contribution).

ELIGIBILITY CRITERIA
FOR EMPLOYEES
CONDITIONS TO AVAIL
OF THE PROGRAM
To qualify for the program, the following conditions must be fulfilled:
1. Small businesses must maintain the employment status of all eligible
employee beneficiaries before the ECQ and throughout the SBWS period.
This will be checked during the monitoring and evaluation stage. Non-
compliance with this condition shall result in the employer refunding to
the government the wage subsidy amount.
2. Employees cannot resign during the ECQ period.

SALARY SUBSIDY
AMOUNT
All eligible employees of eligible small businesses shall be given a wage
subsidy of 5,000 to 8,000 pesos per month (depending on their region of
work) for up to two months, depending on the extent of the ECQ.
The subsidy amount varies per region and is generally aligned with the
emergency subsidy for the informal sector, except that 8,000 pesos per
month is estimated for all eligible workers in NCR and Regions III and IV-A.
The reason for this is that there are many workers who live in one region and
work in another region.

RELEVANT DATES
MODES OF PAYMENT

(IN PARTNERSHIP WITH THE

DEVELOPMENT BANK OF THE
PHILIPPINES)
1. Withdrawal via employee’s SSS UMID cards enrolled as ATM
2. Withdrawal from employee’s bank account for PESOnet participating
banks (See list here)
3. Employee’s Union Bank Quick Card (partnership with SSS)
4. Employee’s E-wallet: PayMaya
5. Cash pick-up arrangement through MLhuillier

NETHERLAND
Coronavirus: cabinet takes package of new
measures for jobs and economy
News item | 03/17/2020 | 18:45

Note: The date of this news item is March 17, 2020. Read the current
information about the emergency package for jobs and the economy .

The cabinet has today decided to take exceptional economic measures

because of the corona virus. In addition to protecting our health, the aim is
to protect our jobs and incomes and to absorb the consequences for self-
employed professionals, SME entrepreneurs and large companies. This
package provides billions of euros in support every month for as long as it
takes. The measures ensure that companies can continue to pay their staff,
bridge the gap for self-employed workers and, through relaxed tax
arrangements, compensation and additional credit facilities, allow money to
remain in the companies.

Ministers and state secretaries of Economic Affairs and Climate (EZK),

Finance and the Minister of Social Affairs and Employment (SZW) announced
the package to the House of Representatives on Tuesday in addition to
economic measures that were already taken by the cabinet on Thursday 12
March.

The ministers jointly state: "In the first place, it is essential that every Dutch
person always follows health decisions and advice. These measures also
have a major impact on entrepreneurs of all sizes, in all sectors. We are not
leaving them alone. They receive extra support in the new package, and the
cabinet also simplifies access and relaxes conditions, so that staff and self-
employed people keep their work as much as possible. "

The cabinet is following the situation closely and is in constant contact with
business organizations, social partners and banks about this. Sound
government finances and budgetary agreements ensure that the
government will not immediately have to make cutbacks as a result of this
package. It is decided to increase the national debt, that is possible, because
the debt has been brought down in good times.

The measurements:

1. Establish temporary scheme for compensation of wage

costs (Ministry of Social Affairs and Employment)
An entrepreneur who expects a loss of turnover (at least 20%) can apply to
the UWV for a salary contribution for a period of three months (maximum
90% of the wage bill, depending on the loss of turnover). UWV will provide
an advance of 80% of the requested contribution. This allows companies to
continue to pay their staff. The condition is that no staff may be fired for
economic reasons during the subsidy period. This Temporary Emergency
Measure Bridging for Work Retention(NOW) will be opened as soon as
possible and will replace the current working time reduction scheme. No
new applications can immediately be submitted for this to SZW. Applications
that have already been made but not yet settled will be handled in the new
scheme. Entrepreneurs can apply for the allowance for a decrease in
turnover from 1 March.

2. Extra support for independent entrepreneurs (Ministry of

Social Affairs and Employment and municipalities)
The cabinet is introducing a temporary, relaxed arrangement to support
independent entrepreneurs, including self-employed persons, so that they
can continue their business. The scheme is implemented by
municipalities. Self-employed persons can receive additional income support
for subsistence for a period of three months through an accelerated
procedure . This supplements the income to the social minimum and does
not have to be repaid. There is no asset or partner test in this temporary
assistance scheme for self-employed persons. Support under this temporary
scheme is also possible in the form of a working capital loan at a reduced
interest rate.

3. Relaxation of deferral of payment of tax and reduction of

fines (Tax and Customs Administration)
Affected entrepreneurs can more easily apply for deferral of tax. The Tax
Authorities will then immediately stop the collections. This applies to
income, corporate, wage and turnover taxes (VAT). Any default penalties for
late payment do not have to be paid. Moreover, it is not necessary to send
evidence immediately. The entrepreneur gets longer to do this. The
recovery interest that normally starts after the expiry of the payment term is
temporarily reduced from 4% to almost 0%. This applies to all tax debts. The
rate of the tax interest also temporarily goes to almost 0%. This reduction
will apply to all taxes subject to tax interest. The cabinet will adjust the tax
rate as soon as possible.
4. Broadening of the Guarantee for Entrepreneur Financing
(Ministry of EZK)
Businesses that have problems obtaining bank loans and bank guarantees
can use the Guarantee Business Financing scheme (GO). The cabinet
proposes to increase the GO's guarantee ceiling from 400 million to 1.5
billion euros. With the GO, EZK helps both SMEs and large companies with a
50% guarantee on bank loans and bank guarantees (minimum 1.5 million -
maximum 50 million euros per company). The maximum per company will
be temporarily increased to 150 million euros. The Cabinet is committed to
providing all warranty space that is required.

5. Interest discount small entrepreneurs on microcredits

Qredits (Ministry of Economic Affairs)
Microcredit provider Qredits finances and coaches a large group of small
and starting entrepreneurs, who often find it difficult to obtain financing
through the bank. These include entrepreneurs in the catering, retail,
personal care, construction and business services. Qredits opens a
temporary crisis measure: for small entrepreneurs affected by the corona
issue, a repayment of six months is offered and the interest during this
period is automatically reduced to 2%. The Cabinet supports Qredits for this
measure with a maximum of 6 million euros.

6. Temporary security for agricultural and horticultural

companies (Ministry of Agriculture, Nature and Food Quality)
For agricultural and horticultural businesses, a temporary guarantee for
working capital will be provided under the Guarantee for SME Agricultural
Credits (BL) scheme. In this way, the Cabinet guarantees the credits of
agricultural entrepreneurs. The adjusted BL scheme will apply from March
18, 2020.

7. Consultation on tourist tax (central government /

municipalities) and culture sector
In consultation with the Association of Dutch Municipalities (VNG), the
Cabinet is discussing the possibility of ending (provisional) local attacks on
entrepreneurs and withdrawing imposed assessments on companies. This
particularly concerns the tourist tax. The national government is also in
consultation with the culture sector in order to be able to link up with
generic measures and any specialization if necessary.

8. Compensation scheme for affected sectors (Ministry of EZK)

The government's health measures have enormous consequences for
income in a number of sectors in particular. Such as the (mandatory) closure
of food and beverage outlets and cancellations in the travel
industry. Moreover, this income is difficult to catch up when the coronavirus
is over. The Cabinet is therefore coming up with a compensation scheme
with appropriate measures for companies in the aforementioned
sectors. This is now being worked out and urgently submitted to the
European Commission for the assessment of (permissible) state aid.

Where can entrepreneurs go?

Banks can submit applications for the extended credit schemes (BMKB and
GO) to the Netherlands Enterprise Agency, the implementing organization of
the Ministry of Economic Affairs and Climate. Entrepreneurs report this to
their lender. Entrepreneurs can contact the Dutch Tax and Customs
Administration for tax measures via Belastingdienst.nl/coronavirus . The
schemes of the Ministry of Social Affairs and Employment will be opened as
soon as possible.

For other questions about the coronavirus, companies can

visit Rijksoverheid.nl/coronavirus or RIVM . Or go to the website of the
Chamber of Commerce . Can't find the answer to your question? Then call
the advisory team on 0800 - 2117.

Documents


 Letter to parliament on emergency package for jobs and the economy

In this letter to the House of Representatives, the Cabinet is

announcing a package of measures to reduce jobs and incomes ...

Parliamentary paper: Letter to parliament | 3/17/2020

JAPAN
22 May 2020
Social protection

Cash Payment to all residents in Japan

 Cash payment to all residents for the purpose of fostering national solidarity against
COVID-19
 Amounting to Approx. 12.9 trillion yen
 100K yen per person, tax exempt
Child allowance of 10k per child

On top of (regular) monthly 10K per child allowance, tax exempt

Emergency microcredit to troubled households

Max 200K loan (no interest) to those who need temporary money, and additional loan (no
interest) of 450K-600K for 3 months to those who rebuild their lives.  Loans are forgivable in
certain cases.

Enhance rent support for low income households to include those who are about to lose
their dwelling due to decrease in revenue below certain thresholds.

Reduction or exemption of social security contribution (healthcare, long-term care

insurance)

Deferment of utility charges (request)

Support for parents’ work leaves:

 Establish a new subsidy system that covers employees, no matter permanent or

non-permanent (subsidy rate: 10/10, up to 8,330 yen a day)
 Support self-employed people performing subcontract work (4,100 yen a day for
those who meet certain eligibility criteria)
Special loans from emergency small funds for individuals:
  The government makes an exception in the living and welfare fund loan program for
households facing income decline due to the impacts of COVID-19
 Establish Special Loans from Emergency Small Funds (emergency small loan:
incremental from 100,000 to 200,000 yen, with no interest and with possible
exemption)
Strengthening comprehensive support by promoting the use of the self-reliance support
system for people in need:

 The government encourages the local governments to provide comprehensive

supports tailored to people in need, including those who had to leave their jobs or
have decreased incomes due to the impacts of COVID-19
Employment retention

Expanding special measures on the Employment Adjustment Subsidies:

 Some businesses are forced to curtail their operations in response to the slow-down
of the flow of people and goods. The government will significantly expand special
measures on the Employment Adjustment Subsidies so as to protect employment
and secure the stability of people’s lives even in such a situation. Expand the scope
of the special measures to all business owners, clarify eligibility criteria (such as
simultaneous closure), and apply retroactively back to January 2020.
 Increase the subsidy rate for certain areas (SMEs: increase from 2/3 to 4/5, in case
of no dismissals 9/10; large enterprises: from 1/2 to 2/3, in case of no dismissals
3/4).
22 May 2020
Assistance to business and business continuity

Cash Payment to SMEs and Sole proprietors, etc.

 Approx. 2.3 trillion yen.  Cash payment to a variety of businesses (incl. NPO,
healthcare corporations, etc.), which can be used in broad area.
 2M yen to corporations and 1M yen to sole proprietors  (similar to “own-account
workers” *annotated by ILO-Tokyo) whose revenue falls by more than 50% in any
month of 2020 from previous year.
Financial Measures (support for cash management)

 No interest no collateral loan (w/ principal amortization deferred up to 5

years) through private financial institutions, besides government affiliated
financial institutions (e.g. JFC).
 Refinancing of outstanding loans to no interest loan. 
 Tax Measures
  Enhance Tax and SS contributions deferment for business with  rev falling by more
than 20%, etc.
 Reduction or exemption of local property tax on machinery and building for
affected SMEs, etc. 
 Request to landlords to consider rent deferment, etc. depending on tenant’s
situation, while requesting banks to reschedule the landlord’s debt, etc.
Promoting telework:

 Established new subsidies for SMEs to cover costs for new electric communication
systems in order to introduce telework
 Emergency loans for freelancers and self-employed