On lockdown since the 13th of March, Estonia has adopted the following measures to face COVID-19 crisis.
Financial help (loans etc…)
The Government gave its approval to a package of measures worth EUR 2 billion, which represents nearly 7% of GDP.
The amendment to the Local Government Financial Management Act temporarily increases the upper limit of the net debt burden for local governments.
Relief to accompany a slowdown or absence in business activity
Temporary salary subsidies are available to both public and private companies most effected by the Coronavirus. The subsidy is payable subject to meeting at least two of the following terms:
- The employer must have suffered at least a 30% decline in turnover or revenue for the month they wish to be subsidized for, as compared to the same month last year.
- The employer is not able to provide at least 30 percent of their employees with work.
- The employer has cut the wages of at least 30% of employees by at least 30% or down to the minimum wage.
The amount of the subsidy will be 70% of the average monthly wage of the employee. The maximum amount of the subsidy is Euro 1000 per month. In addition to that, the employer must pay a monthly wage of at least Euro 150 to the employee.
If the employer terminates the contract with the employee due to redundancy in the course of the same or the following calendar month they have received the temporary subsidy, the subsidy is to be returned to the Unemployment Insurance Fund.
From March to May, the state will compensate the first three days of sick leave for all incapacity leave applications.
The state will cover the advance payment of the tax on social security for the first quarter on behalf of the private entrepreneurs
Tax and other filings should be still made by deadlines set out by the law, however the penalty interest rate (0.06% per day) on tax debts has been cancelled for a period 1st March to 1st May and will be reduced by half to 0.03% per day after 1st May.
Specific Insolvency measures
There are no specific insolvency measures as of now
This information was drafted by the European Insolvency Practitioners Association