Silver Linings and Outlook in the Corona crisis

Fact: The economy will continue to suffer from the crisis for a longer period. But just as the word crisis in its true sense means crossroads, i.e. both a burden and an opportunity, we can also look forward to the positive effects. Even if these are difficult times for all of us now, we must not lose focus on the positive.

Innovations Triggered by the Corona Crisis

The Corona crisis has already led to innovations. No less than 61 percent of the companies* surveyed in Austria report a surge in digitization, and 53 percent are regarding the home office and flexible working hours as important opportunities. 40 percent see the crisis as an impetus to streamline operational processes, for example, and more than a quarter are already entering new business areas. Here too, InterGest Austria is providing active support - be it in changing the company's legal form, conversion to online sales and marketing for online shops, or subsidies for teleworking.

* Study published by Leitbetriebe Austria

"We Carry On" - The Location Initiative

Parallel to the Federal Government's campaign to reduce the spread of the Corona virus and to avoid health risks, the Federal Government's "We Carry On" location campaign promotes the economic recovery of Austria, as fast as feasible. For foreign companies, especially those from German-speaking countries, Location Austria should continue to serve as a hub, and its advantages should be made attractive. To make it easier for companies to settle here, Government aid incentives are currently being discussed. InterGest Austria continues to actively support foreign companies and offers the complete range of services for the establishment of foreign subsidiaries in Austria.

How do we See the Near Future of InterGest Austria?

Suddenly having no more direct customer contacts is one thing. But we continue to actively support our clients in this crisis - we have always been very well networked and positioned digitally. Remote access, home office, Zoom & Skype meetings have been standard for us for quite some time. We can manage this - because consulting services are particularly important in a crisis.

We Offer the Following Services:

• Video Conference and Online Meetings:

Solutions to collaborate using cloud-based video telephony

• Communication and Collaboration:

Solutions to enable digital collaboration in virtual workspaces

• Cyber Security:

Secure connection between the company network and the mobile work equipment

• Internet Access:

Mobile and fast access to the Internet

Special Tax Arrangements concerning Coronavirus

Measures of the Federal Ministry of Finance:

• Waiving or Reduction (down to 0 Euro) of tax advance payments for income tax or corporation tax, for 2020.

• Payment Alleviations (postponement or payment in instalments): The date of payment of duties can be postponed until 30.09.2020 (postponement) or payment in instalments can be requested until 30.09.2020.

• Abstinence from assessment of interest on supplemental charges.

Credit Guarantee of the Republic of Austria

Scope and Amount

Federal guarantees are available for loans, amounting to 90% of the loan volume. The upper limit is a maximum of 3 months' turnover or a maximum of 120 million Euros (this can only be increased in exceptional justified cases). A maximum loan interest rate of 1% applies. In addition, in accordance with the EU State Aid Framework, guarantee fees are charged of 0.25% to 2% (depending on the size of the company and the term of the guarantee).

The maximum term is 5 years; may be extended by up to 5 years.

Requirements

The location and business activities of the borrower must be in Austria, and there must be a liquidity requirement for the domestic location.

Grants to Cover Fixed Costs

In addition to guarantees, companies particularly affected by the Corona crisis can apply for a fixed cost subsidy (among other things for business premises rent, insurance premiums, interest expenses, operationally necessary contractual payment obligations such as leasing rates, licence costs, payments for electricity, gas, telecommunications, and expenses for perishable or seasonal goods whose value has fallen by at least 50 % as a result of the crisis).

Scope and Amount of the Subsidy

The tax-free and non-repayable federal subsidy is graduated and depends on the loss of turnover of the company during the period of the Corona crisis (between March 15, 2020, and its end):

• 40 - 60 % shortfall: 25 % indemnity

• 60 - 80 % shortfall: 50 % indemnity

• 80 - 100 % shortfall: 75 % indemnity

The fixed cost subsidy is limited to a maximum of EUR 90 million per company.

Source: investinaustria