COVID-19 Update: AVS and commercial lease
While the process of easing the measures against the COVID-19 outbreak becomes clearer with a reopening of all shops contemplated on May 11, 2020, new measures have been added to those measures already presented in our April Newsletter (Newsletter - April 2020.pdf).
The Swiss Federal Council decided to waive to charge any default interest in case of late payments of contributions to AVS (Old Age and Survivors' Insurance), AI (Invalidity Insurance), APG (Loss of Earnings Insurance) and AC (Unemployment Insurance) until June 30, 2020. This temporary measure adds to the waiver of default interests already applied when a stay has been granted to a company suffering from a lack of liquidity.
The agreement entered into on April 6, 2020, between the canton of Geneva and real estate industry associations relating to the payment of commercial rents until CHF 3’500 per month has been extended for May 2020.
In addition, a similar measure has been granted to companies which were not allowed to reopen on April 27, 2020, with rents ranging from CHF 3’500 to 7’000 per month (CHF 10'000 for restaurants). To benefit from said measure, the tenant must have paid the April rent, not already be on formal notice for late payment before March 17, 2020, and must undertake to maintain all jobs and not dismiss any member of its staff for reasons related to the current economic and health crisis.Back