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COVID-19 | Support measures for Monegasque companies

25/03/2020

The Government of Monaco has taken exceptional measures to support Monegasque companies facing economic difficulties due to the coronavirus COVID-19 pandemic.

The Prince’s Government might modify the list and the content referred to below so as to better respond to the inherent needs of the current situation.

For the time being, the following measures have been taken:

Amendment to the interest subsidy scheme 

Ministerial Decree No 2020-253 of 20 March 2020, amending the Ministerial Decree No 2004-261 of 19 May 2004 on professional installation and assistance to undertakings, as amended, provides for:

  • the extension of the subsidy to cash loans taken out by Monegasque retailers, craftsmen as well as Monegasque small and medium-sized companies (upon request);
  • the full charge of the interest rate of the cash loan to be taken by the State (abolition of the floor-rate fixed at the 3-month EURIBOR rate plus 0,75% and switch to an interest rate of 0% for the loan beneficiaries).

Please note: only the cash loans up to a maximum amount of EUR 300,000 granted in the context of « a specific and exceptional economic situation recognised by the Government » are concerned by the subsidy. Supporting documents shall be provided by professionals wishing to benefit from this scheme to establish that the cash loans are linked to a specific and exceptional economic situation, such as the one linked to the coronavirus COVID-19 pandemic.

Allocation of an additional EUR 50 million to the Monegasque Credit Guarantee Fund and increase in the guarantee quota from 65% to 100% for eligible credits in the event of default 

(Note: the Fund guarantee is activated only at the request of a Monegasque credit institution) 

The stated objective is to enable defaulting Monegasque professionals to benefit from the State’s counter-guarantee from credit institutions for the repayment of their credits. Further details on this scheme will soon be provided by the Prince’s Government.

Extraordinary minimum income for the self-employed 

Details on this minimum income, which should be of a slightly higher amount than the Monegasque minimum wage, will be provided very shortly by the Government of Monaco.

Exemption from payment of the annual flat-rate fee for the professional activities carried out at home from 1 January 2020 and reimbursement of the fraction of the fee already paid for the year 2020 as soon as possible (only for state-owned housing)

Exemption from payment of rents and rental charges for retailers for the whole of the 2nd semester of 2020 and reimbursement of the rents and rental charges paid for the month of March 2020 (only for state-owned premises)

The scheme could be generalised to all companies impacted by the coronavirus COVID-19 crisis.

Referral to the Committee for Assistance to Businesses in Difficulty (Commission d’Assistance aux Entreprises en Difficulté or « COMED »)

The terms and conditions of the referral to this commission, created by the Ordinance No 11.888 of 20 February 1996 and intended to help companies in distress, are currently being reviewed by the Prince's Government to take into account the difficulties linked to the coronavirus COVID-19 crisis. The Government will likely soon communicate on this.

Deferral of Value Added Tax

Companies and self-employed persons will benefit from a thee-month deferral for the payment of the tax. Only taxable persons who have made their VAT return on time and in the prescribed manner will be able to benefit from this deferred payment system. 

Staggered payments of social contributions to social security fund (Caisses Sociales de Monaco) and social organisations

Employers and self-employed workers may request by email to stagger the payment of their contributions to the Contribution Debt-collection Service of the social fund and justify the nature of the difficulties encountered in relation with the pandemic situation.

Staggered payments for electricity, gas and phone contributions

Companies and self-employed workers whose activity is impacted by the coronavirus COVID-19 pandemic may request by email to stagger the payment of their contributions to the Monegasque Company for Electricity and Gas (SMEG - Société Monégasque de l'Electricité et du Gaz) and the Monaco Telecom company.

Assistance measures concerning public car parks

The Public Car Parks Office (Direction des Parkings Publics) has introduced the following measures:

  • for people with an employment subscription contract: no invoicing of overruns and the possibility of suspension of the subscription contract for employees who have been laid off within the framework of the strengthened provisions for total temporary layoff (chômage total temporaire renforcé) (upon request);
  • for people without an employment subscription contract and who have to go to their workplace: possibility to obtain a free parking card upon request by the employer by email.

Useful contacts

 Covid19 Entreprises Center

Center in charge of the information on the assistance schemes set up by the Government of Monaco for Monegasque companies.     

Monegasque Social Fund (Debt-collection service) / Caisses Sociales de Monaco (Service Recouvrement) 

Department of Tax Services / Direction des Services Fiscaux

The State Property Authority (Debt-collection fund) / Administration des Domaines (Caisse Recouvrements)

Monegasque Company of Electricity and Gas / Société Monégasque de l'Electricité et du Gaz (SMEG)

Monaco Telecom

Public Car Parks Office / Monaco Parkings


Source : https://service-public-entreprises.gouv.mc/Covid-19/Informations-pratiques-Covid-19

Authors

Olivier Marquet
Olivier Marquet
Avocat Associé | Managing Partner
Monaco
The picture of Stephan Pastor
Stephan Pastor
Avocat Associé | Partner
Monaco
The picture of Juliette Henry
Juliette Henry
Associate
Monaco