Press Releases 30/03/2020

How do these measures apply in April, who are those that are coming into protection on April 1st:

Context 1


In the first context, affecting active businesses, which is already known, has tax and insurance suspensions and special purpose compensation, and what Ministers have said about self-employed and scientists, the following sectors have been added since April:

- Real estate agencies, real estate management

- Construction of buildings, electricians, plumbers, carpenters, painters, floor coverings etc.

 - Website development, web portals, programming services etc.

 - Cleaning of buildings

- Dry cleaners

 -Retail sale of bakery products

- Veterinarians

 - Charities, non- profit institutions

 - Equipment repair and maintenance, machinery hire - Retailing in open-air markets (street and municipal markets)

 - Call center activities

- Security services.

All businesses that joined in March and those that are added in April are also given the option of paying a 25% tax deduction on their April cash if they pay their VAT in due time, which will be calculated on their tax liabilities thereafter. The condition for those now entering, in April, is to have paid their March obligations properly.

Context 2

The second context has slightly different characteristics. The second framework includes April, industry, wholesalers, insurance and some other service companies. The sectors that are included are:

 - Mining activity

 - Forestry, Logging

- Production of pigments, soaps, rubber, chemicals, fertilizers, plastic, iron, glass, ceramics, cement, lime, aluminum, copper and steel.

-Manufacture of plastic products, glassware, paperware, woodworking, metalware, tools, ceramics

 - Wholesale of machinery, metals, chemicals, timber, building materials

 - Manufacture of computers, telecommunications equipment, watches, magnetic media, machinery, electrical goods, motorcycles

 - Production of soft drinks, water and juices

 - Production of flours, starches, macaroni, sugar, flavorings, oils, fats

 - Production of milk, cheese, yogurt

- Processing and preserving of meat, fish, fruit and vegetables

- Wholesale and trade representatives of food, meat, fish, dairy, fruit and vegetables

- Storage

- Shipbuilding

- Insurance companies

- Audit firms

- Brokerage and holding companies.

 

Businesses that are listed in Context 2 receive the following benefits:

 - Suspension of VAT and installments of certified debts to the Tax office for 4 months. Installments can be deducted up to 25% if paid on time. Extra option, if they pay the VAT of April in due time, there can be a 25% tax deduction already mentioned in Context 1. The deduction is granted provided that they have fulfilled their tax liabilities, which are payable in March.


-Special purpose compensation of 800€ for 45 days for employees suspended from work. These employees receive suspended payment of certified debts and installments at the tax office for 4 months, with a 25% discount if they pay their debts on time.

 - Compensation of 800€ for freelancers, self-employed and business owners of any legal form, employing up to 5 people. Provided that the trader or self-employed person is active and has not made zero VAT refunds for the past six months.

Context 3


Finally, there is a third context, which will apply from April onwards, and the following sectors are included:

- Electricity trading and distribution

 - Trading and distribution of gas fuels through pipelines

 - Fuel stations

 - Construction of roads, bridges and tunnels, public works, ports, etc.

 - Waste management


For those companies belonging to these sectors a special purpose allowance of 800€ is provided for 45 days for workers suspended on temporary employment contracts. These employees receive a suspension of payment of debts to the Tax Office for 4 months. In addition, special arrangements for liquidity facilitation will be provided for the electricity trading and distribution sector, which will be specialized in cooperation with the relevant Ministry.

Refundable deposit


The refundable deposit is an important additional tool that will cover, as we have said, all sectors of the economy. The refundable deposit relates, as the Minister of Finance said, to 1 billion euros and will be granted in April, subject to the following conditions:

• It mainly concerns small and medium-sized enterprises with a staff of 1 to 500 employees.

• Responds to the specific issues of accessibility to finance and credit profile that many small and medium-sized businesses have, which are obviously worsening at this stage.

• It will be provided directly by the state through Taxis.

 • It is characterized as reimbursable because it will be fully or partially - depending on the viability of the business - returned to the state within the next few years at an extremely low interest rate.


• It is a five-year period, within which the first year is a grace period and there is no obligation to repay the aid, while the remaining 4 years are the repayment period in equal monthly installments.

• Eligibility is based on reflecting the current situation, compared to the previous one. This will be done through a standardized, automated mechanism created by the Ministry of Finance, the General Accounting Office with AADE, based on tax data and other financial indicators. The amount of aid will also be standardized and the aid will be non-discriminatory, tax-free and non-offsetting.

 •Businesses interested in taking advantage of this context should register on the special AADE platform (myBysinessSypport) from April 2 to 10 and the requirement, as the Minister of Finance said, is to maintain their jobs.

All of these measures effectively protect productive tissue and jobs in the first phase of the crisis and set the stage for a restart of the economy, but additional measures,  will be taken as new matters will appear after the health and economic policy will becomes clear.

This is not the case at the moment, so the additional Budget we are depositing is not detailed, this will be the next phase. We can go into a detailed reform of the Budget when we can accurately determine the duration, extent and financial impact of the crisis.
 
This period requires cohesion, attention and moderation from everyone. We believe that with the steps that the government is taking, as the crisis begins and shapes, we will keep the productive fabric and jobs alive

Analog Group

Tax Department

© 2020 by Analog Group

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