Crisis help information for economic operators

Crisis help information for economic operators

On 1 April 2020, the Tallinn City Government approved the Tallinn city business environment aid measures to mitigate the negative impact of the state of emergency. The aid measures are primarily aimed at economic operators that have contractual relationships with the city or that affect the local government operations.

Tallinn city crisis measures for economic operators

  • Granting advertisement tax benefits to economic operators – benefit is implemented to the extent of 50%
  • Granting benefits to city property users – the city reduces rent and user fees for contract partners
  • Relaxing payment conditions – the city pays for the received services and goods within 10 calendar days (instead of the current 21 or 30 calendar days)
  • Relaxing contract conditions  the city briefly waives the contractual sanctions (contractual penalty, fine for delay) related with difficulties with filling orders or supply difficulties due to the state of emergency and extends the deadlines for performing the obligations by a reasonable period
  • Partial compensation of irreversible costs of cancelled conferences, culture and sports events (non-profit activities support applications submitted to the city before the state of emergency was declared)
  • Continued payment of city sports activities and releasing from rental payments of city sports facilities 100%

Aid measures in detail (pdf)

Aid measures in detail (word)

Additional information: respective city office that signed the contract

The Tallinn City Enterprise Department continues providing free business and employment rights counselling. Don’t hesitate to contact us!

 

National crisis measures for economic operators

Enterprise Estonia’s crisis measures

  • Support for partial compensation of small businesses
    For companies whose 2019 financial year turnover or, in case of a small business that has been operating less than a year the turnover of total operating time was more than 20,000 and less than 40,000 euros – support 3,000 euros.
    For companies whose turnover for the 2019 financial year was more than or equal to 40,000 and less than 100,000 euros and whose turnover in March or April 2020 decreased by at least 30% in comparison with the turnover in the same month in 2019 – support 5,000 euros.
  • Compensation for damage suffered by accommodation companies
    For a company registered in the Commercial Register as an accommodation company (EMTAK I551, I552, I553 or Q86905) as at 1 February 2020 that offers a service subject to the 9% VAT rate.
    The minimum amount of support is 2,000 euros.
    The maximum amount of support is 60,000 euros.
    The support amount is up to 100% from the labour taxes paid by the economic operator for 2019.
  • Compensation for damage suffered by food service companies
    For a food service company registered in the Commercial Register with the EMTAK code I56 (excluding other food service I5629) as at 1 February 2020
    The minimum amount of support is 2,000 euros.
    The maximum amount of support is 30,000 euros.
    Support amount is up to 20% from the labour taxes paid by the economic operator for 2019.
  • Compensation for damage suffered by travel companies
    For a company registered in the Commercial Register whose main area of activity is as at 1 February 2020 provision or mediation of travel services (EMTAK N79)
    The minimum amount of support is 2,000 euros.
    The maximum amount of support is 60,000 euros.
    The support amount is up to 95% from the labour taxes paid by the economic operator for 2019.
  • Compensation for damage suffered by tourist attractions
    For a visitor centre or museum where admission is based on a ticket, which provides services to visitors and whose owner is a private legal entity, sole trader, local government institution or a foundation or non-profit association established with the participation of a local government and which is registered in the Commercial Register as at 1 February 2020.
    The minimum amount of support is 2,000 euros.
    The maximum amount of support is 50,000 euros.
    The amount of the support can be up to 50% of a tourist attraction’s turnover from March, April, May and June 2019. 
  • Compensation for damage suffered by tourist service providers
    For a private legal entity registered in the Commercial Register as at 1 February 2020, which provides experience services to visitors in nature tourism or cultural tourism, or active holiday services, and which can be found in the Estonian tourist services database www.puhkaeestis.ee
    Support 3,000 euros.

More information: 29 April webinar materials on EAS support measure conditions; EAS website

For further information please contact EAS

 

Unemployment Insurance Fund’s crisis measure

Applications can be submitted from 6.04.2020 via the Unemployment Insurance Fund’s e-services.

The compensation is paid if the employer’s situation meets at least two conditions:

The employer’s turnover or income has dropped, in the month for which the compensation is applied by at least 30% compared to the turnover or income of the same month last year;

The employer does not have the agreed volume of work to give at least 30% of employees;

The employer has reduced the remuneration of at least 30% of employees by at least 30% or to the minimum wage.

Both private and public sector employers can apply for the compensation, regardless of the company size.

Compensation is paid to these employees whose employers cannot provide work in the agreed volume or whose remuneration has been reduced. Compensation size is 70% of the average calendar remuneration of the employee. Maximum compensation amount is 1,000 euros. The employer must additionally pay the employee at least 150 euros in remuneration.

Further information:

Remuneration payment and application webinar that took place on 3 April can be viewed HERE. Webinar slides can be found HERE

The subsidy will be open for online applications in July, further information will be provided as soon as possible.

The subsidy is paid, when an employer has suffered at least a 50% decline in turnover or revenue as compared to the month of June last year. In addition, they must comply with at least one of the following terms:

The employer is not able to provide at least 50 percent of their employees with work and the work load of the employees has been cut by at least 30%.

The employer has cut the wages of at least 50% of employees by at least 30% or down to the minimum wage.

The amount of the subsidy will be 50% of the average monthly wage of the employee. The maximum amount of the subsidy is €800. In addition to that, the employer must pay a wage of at least €150 to the employee. The employer must make their payment before applying for the subsidy.

For additional information contact the Unemployment Insurance Fund

 

KredEx crisis measures

The target group of the service are all Estonian companies, excl. activities and areas previously excluded by KredEx.

For more information, KredEx asks to first contact your company’s home bank.

 

Tax and Customs Board’s crisis measures

  • To relieve the financial situation of the economic operators, the Tax and Customs Board stops interest calculations from companies’ tax arrears for the duration of the state of emergency. The release from interest is valid retroactively from 1 March to 1 May.
  • From 1 May, the interest rate is reduced without a term from the current 0.06% to 0.03%. In the future, the interest rate could be reduced up to 100% in case of payment of tax arrears in instalments. At the moment, the interest can be reduced by 50% at the most.
  • The state will pay the advanced social tax payments of self-employed persons (FIE) for the first quarter to help the economic operators to tackle the economic difficulties caused by the crisis.
  • The Tax and Customs Board is as flexible as possible when processing debts and encourages economic operators to initiate paying tax arrears in instalments in the Tax and Customs Board’s e-environment or use another channel to inform the tax authority of one’s difficulties.

More information: Tax and Customs Board – information and crisis measures for economic operators regarding the state of emergency and frequently asked questions with explanations.

 

Ministry of Culture’s crisis measures

The aim is to provide extraordinary support due to the coronavirus crisis to compensate costs already made related with cancelled activities of culture and sports area organisations and to compensate inevitable costs ahead, and to support freelance creative persons, coaches and leaders of folk culture groups.

More information: Ministry of Culture

 

Useful links

Government of the Republic webpage on the state of emergency in Estonia – all answers are here, incl. all measures implemented by the government

Ministry of Economic Affairs and Communications frequently asked questions regarding the coronavirus. This webpage displays a regularly updated list of frequently asked questions and answers. If you cannot find an answer there, write to covid19@mkm.ee.

Eesti.ee – helps economic operators in the state of emergency

Health Board – instructions for all residents concerning health

Police and Border Guard Board – information on labour force movement and other information on the state of emergency

Labour Inspectorate – recommendations for employers and employees

Working life portal – detailed instructions concerning work law

Consumer Protection and Technical Regulatory Authority – frequently asked questions during the state of emergency

Tourist information portal administered by the EAS tourism development centre Puhka Eestisshares crisis advice to tourism entrepreneurs

Labour force sharing

Unemployment Insurance Fund has created a possibility for mediating temporary jobs to connect employers who currently need people and job seekers whose work options at their main position are limited at the moment

www.shareforceone.ee work sharing platform helps with the Unemployment Insurance Fund to connect the companies whose workers are currently without work and those companies that are short of workers

Sharing devices and other resources

www.eesti.ee/pakunabi is a platform created by the Ministry of Economic Affairs and Communications where companies that have a surplus of devices, tools or other resources due to the coronavirus pandemic can sign up, and people who have skills or knowledge to offer that the government institutions solving the crisis could use

Support from communities and volunteers

www.vabatahtlikud.ee connects those in need of help with volunteers

https://kogukondaitab.ee (in Estonian, Russian and English) connects those needing help with volunteers

#seljadkokku is a platform created by Delfi and Tallinn for anyone in need of help, looking for work and offering work

Information is continuously updated!

 

Last updated: 01.06.2020