1. Australia
Wage Subsidy Plan
Employers will receive a $1,500 per fortnight ‘job keeper payment’ before tax for each employee they keep on over the next six months. It will be available to full and part time workers, sole traders and casuals who have been with their employer for 12 months or more.
Eligible employers will be those with annual turnover of less than $1 billion who self-assess that have a reduction in revenue of 30 per cent or more, since 1 March 2020 over a minimum one-month period.
PAYG withholding 'Cash Back' to boost cash flow for employers
Eligible Businesses and NFPs with an annual turnover of less than $50 million that employ workers between 1 January 2020 and 30 September 2020 may be eligible to receive a cash flow boost of up to $100,000.
Under the enhanced scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 percent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000. The payment will be available from 28 April 2020.
The payments are tax free, there will be no new forms and payments will flow automatically through Business Activity Statements.
Loan Guarantee
The Federal Government is offering to guarantee unsecured loans of up to $250,000 for a term of up to three years, for loans taken out by small businesses in the 6 months starting from April 1. Talk to your bank manager about your freezing existing loans repayments and the possibility of applying for more finance.
New assets & depreciation
The instant asset write-off threshold will increase from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500m (up from $50m) until 30 June 2020.
Asset depreciation has been extended to Dec 31 now.
For eligible businesses other assets (costing more than $150,000) purchased and installed prior to 30 June 2021 will be able to be depreciated on an accelerated basis with 50% of the asset cost deductible in the year of installation.
Apprentice or trainee subsidy
Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
Tax relief
The ATO is offering the following tax concessions:
- Deferring payment of Business Activity Statements, Income Tax Liabilities and Fringe Benefits Tax assessments by up to 6 months.
- Allowing businesses to vary PAYG instalment amounts to zero for the March 2020 quarter and claim a refund for any instalments made for the September and December 2019 quarters.
- Remitting interest and penalties incurred after 23 January 2020.
- Establish low interest payment plans for existing debt.
- Changing your activity statement cycle to monthly instead of quarterly if you usually receive GST refunds.
Extended Payment Terms
For any of our partners who may be struggling to make on time payments, rhipe has recently engaged
BidFin to offer our partners access to Extended Payment Terms with the flexibility of either 30, 60 or 90 days to make payments. We believe this provides you with an opportunity to improve your cash flow and increase your purchasing power with rhipe while still allowing us to operate our business. You may also consider using BidFin to assist your customers in meeting their financial obligations to you.
For those of you who may benefit from this arrangement, please visit the
BidFin website to submit a quote enquiry or contact your Account Manager to discuss further.
rhipe has found a number of Government relief initiatives below for partners who satisfy the eligibility criteria to support their business during Covid-19. Partners should conduct their own independent review of relief that is available in their jurisdiction and seek their own legal and/or financial advice if they have questions about their eligibility.
2. Indonesia
Reduction of Corporate Income Tax Rate
For the Fiscal Year 2020 and 2021 the Corporate Income Tax is 22%.
VAT Restitution
Early VAT refund mechanism will be provided to 19 industry sectors, taxpayers with export orientation (Kemudahan Impor Tujuan Ekspor/KITE) and small and medium taxpayer with export orientation (KITE-IKM). This relaxation is provided for 6 months starting April 2020 to September 2020. There is no limitation on the VAT refund amount for exporters, whilst for non-exporters, the VAT refund amount is limited up to IDR 5 billion. With this early refund scheme, affected taxpayers are expected to be able to maintain their liquidity.
Extension of Deadlines
The deadline to file objection letters is extended to maximum of 6 months for taxpayers whose objection submission deadline falls during the COVID-19 pandemic force majeure period.
3. Malaysia
EPF
EPF will launch an Employer Consultation Services Program on 15 April 2020 where employers may opt for deferment of payment, restructuring, or rescheduling of employers’ contribution. Pending official announcement from EPF.
rhipe has found a number of Government relief initiatives below for partners who satisfy the eligibility criteria to support their business during Covid-19. Partners should conduct their own independent review of relief that is available in their jurisdiction and seek their own legal and/or financial advice if they have questions about their eligibility.
4. New Zealand
Wage Subsidy Plan
Eligible businesses can obtain $585.80 per week for employees working greater than 20 hours and $350 per week for employees working less than 20 hours. Payment is a lump sum equivalent to 12 weeks per employee.
GST / Income Tax
New Zealand’s Inland Revenue Department will write-off any penalties and interest on GST and Income Tax payments.
Extended Payment Terms
For any of our partners who may be struggling to make on time payments, rhipe has recently engaged BidFin to offer our partners access to Extended Payment Terms with the flexibility of either 30, 60 or 90 days to make payments. We believe this provides you with an opportunity to improve your cash flow and increase your purchasing power with rhipe while still allowing us to operate our business. You may also consider using BidFin to assist your customers in meeting their financial obligations to you.
For those of you who may benefit from this arrangement, please visit the BidFin website to submit a quote enquiry or contact your Account Manager to discuss further.
rhipe has found a number of Government relief initiatives below for partners who satisfy the eligibility criteria to support their business during Covid-19. Partners should conduct their own independent review of relief that is available in their jurisdiction and seek their own legal and/or financial advice if they have questions about their eligibility.
5. Philippines
Enhanced Jobs Support Scheme
Subsidize 25% of local staff salary costs (capped at $4,600 monthly salary) for 9 months (October 2019 to July 2020).
Income Tax
Deferral of payments for 3 months for payments due between April to June 2020.
Course fee subsidy and absentee payroll
Course fee subsidy of 90-95% and absentee payroll of $10 per hour.
Enhancements to SMEs Go Digital
Support up to 80% for pre-approved digital solutions including online collaboration tools and virtual meeting and telephone tools.
rhipe has found a number of Government relief initiatives below for partners who satisfy the eligibility criteria to support their business during Covid-19. Partners should conduct their own independent review of relief that is available in their jurisdiction and seek their own legal and/or financial advice if they have questions about their eligibility.
6. Singapore
Extended Payment Terms
For any of our partners who may be struggling to make on time payments, rhipe has recently engaged BidFin to offer our partners access to Extended Payment Terms with the flexibility of either 30, 60 or 90 days to make payments. We believe this provides you with an opportunity to improve your cash flow and increase your purchasing power with rhipe while still allowing us to operate our business. You may also consider using BidFin to assist your customers in meeting their financial obligations to you.
For those of you who may benefit from this arrangement, please visit the BidFin website to submit a quote enquiry or contact your Account Manager to discuss further.
Jobs Support Scheme
The Jobs Support Scheme was launched to help employers retain their local employees, the SME Working Capital Loan offered additional funding until March 2021, and there was a 25% corporate income tax rebate for 2020, up to $15,000 per company.
Credit
Financing schemes from the Unity Budget were enhanced, enabling hardest-hit businesses to have access to credit from 8 April 2020 to 31 March 2021. These included:
• Enterprise Financing Scheme – SME Working Capital Loan: Where maximum loans were raised from S$600,000 to $1 million.
• Temporary Bridging Loan Programme: Where maximum loans were raised from $1 million to S$5 million, with interest rate capped at 5% per annum.
• In addition, SMEs may defer principal repayments for one year, subject to assessments by the participating financial institutions.
Source: https://www.tradegecko.com/blog/small-business-growth/singapore-small-business-support-through-covid-19
rhipe has found a number of Government relief initiatives below for partners who satisfy the eligibility criteria to support their business during Covid-19. Partners should conduct their own independent review of relief that is available in their jurisdiction and seek their own legal and/or financial advice if they have questions about their eligibility.
7. Thailand
Extension of deadline for filing (CIT)
An application for exercising the corporate income tax (CIT) for non-listed companies, extension to 31 August 2020 of the deadline for filing annual CIT returns and payment of tax. This applies to returns/payments due between 1 April and 30 August 2020.
Also, the extension to 30 September 2020 of the deadline for filing half year tax returns and payment of tax. This applies to returns/payments which are due between 1 July and 29 September 2020.
Reduction of Withholding Tax (WHT) Rate
The withholding tax rate of 3% will be reduced to 1.5% on payments of assessable income from 1 April to 30 September 2020 and to 2% from 1 October 2020 to 31 December 2021. However, the 2% rate will apply only to payments made via the e-withholding tax system.
Acceleration of VAT Refunds to Domestic Entrepreneurs
VAT refunds will be accelerated for goods exporters. Refunds will be made within 15 days for the monthly VAT return (PP.30) filing via the internet or 45 days for filing at the Area Revenue Branch Office.
Personal Income Tax
Extension of deadline from 30 June 2020 to 31 August 2020 for filing personal income tax returns and payment of tax (the original filing deadline is 31 March 2020).
Heath Insurance
Increase in the maximum deductible amount for health insurance premiums from THB 15,000 to the new cap of THB 25,000, which the total of premiums included life insurance premiums must not exceed THB 100,000 and will apply for the 2020 tax year onwards. Exemptions will apply to compensation earned in the 2020 tax year.
Reduction of contributions to the Social Security Fund (SSO)
Contributions to the SSO by employers and employees will be reduced from 5% of wages to 4% with the government contributions being maintained at the same rate of 2.75%. As a result, the monthly maximum contribution of THB 750 will be reduced to THB 600 for both employers and employees. Those will be effective during the period from March to August 2020. However, it is recommended by the SSO to contribute based on the existing rate until the law comes to effect.
Deduction of 300% for wage expense
SME which is allowed to deduct three times the amount of wages paid April 2020 to July 2020 to employees, who are insured under the Social Security Act and receive wages of not more than THB 15,000 per month per employee. Key conditions to be followed the company must be SME and must maintain the same number of insured employees during those respective months as were reflected on the payroll on 31 December 2019.
rhipe has found a number of Government relief initiatives below for partners who satisfy the eligibility criteria to support their business during Covid-19. Partners should conduct their own independent review of relief that is available in their jurisdiction and seek their own legal and/or financial advice if they have questions about their eligibility.
8. COVID-19 Bank relief FAQs for SMBs (ANZ only)
The following FAQs outline the support that is available to Partners from banks during this difficult time. rhipe encourages our Partners to contact their your banks directly to explore what is available to you under your specific circumstances.
How can my bank help me exactly?
Australian and New Zealand banks will defer loan repayments for six months for small businesses who need assistance because of COVID-19.
They are also offering loans, including overdrafts, with no repayments for the first six months, at very low interest rates, supported by the Government, through an SME Loan guarantee.
Other assistance can include fees waived, loans restructured, and further credit offered to get through the pandemic.
Does this apply to sole traders?
Yes, it applies to all current small business operators.
How do I get the assistance?
Contact your bank to opt in. A fast track approval process will provide support as soon as possible.
What is the definition of a small business?
To be eligible in Australia, you must have less than $3 million total debt to all credit providers. You need to be current, and not in arrears as of 1 January 2020. It does not matter how many people you employ.
Some banks are applying these criteria flexibly, if you fall outside these criteria, please contact your bank.
Can a business borrow money at this time?
Yes. Banks are offering loans at very low interest rates, supported by the Government, through an SME Loan guarantee. Your business would still need to meet certain lending criteria set out by your bank.
Will I be charged interest during the 6-month deferral?
While you won’t have to make any principal or interest payments for the 6 months, interest will continue to be accrued.
It can then be paid off over the life of the loan once repayments begin again, or the length of the loan can be extended. This will be a conversation between you and your bank.
Can I get help with my mortgage?
Yes. Some banks are now offering customers the option to defer home loan repayments for up to six months.
Can I get help with a credit card or personal loan?
If you have been impacted by COVID-19 and are experiencing hardship, your bank can help. Assistance can include waiving fees, restructuring loans or other things to help get you through the pandemic.
Check your banks website under ‘Hardship’.
If I defer my repayments will it affect my credit rating?
Banks report your repayment history to credit bureaus. Any change to your loan structure or repayments may be recorded on your credit history, but banks and credit bureaus are working together to ensure that reporting is fair to customers and takes Covid-19 into account.
I’m nervous about telling my bank I’m in trouble
Your bank wants to partner with you through this difficult time.
Getting people back to work and keeping them in their homes is what is in the best interests of all Australians and New Zealanders.
Many banks are contacting their customers directly to see what help they may need.
However, if you are worried, it is important that you contact your bank as soon as possible. The earlier you contact your bank the more assistance they will be able to provide.
rhipe has found a number of Government relief initiatives below for partners who satisfy the eligibility criteria to support their business during Covid-19. Partners should conduct their own independent review of relief that is available in their jurisdiction and seek their own legal and/or financial advice if they have questions about their eligibility.
