12.07.2021
More than 30,000 companies out of a total of 74,000 who have applied to participate in the Fixed Expense Subsidy Program are expected to receive credit for paying 2021 tax and insurance liabilities. Even within the next week, the ministerial decision is expected to be issued with the final amount of the subsidy they will receive as the implementation of this program will begin within the month. According to the first data available to the Ministry of Finance, a significant percentage of the final beneficiaries belong to the catering and tourism sectors as the first processing of the data shows that:
• 10,000 applications concern catering companies • 3,500 hotels and accommodation used for tourist purposes • The rest concern commercial enterprises, companies active in the fields of culture, transport, etc. According to the Minister of Finance Mr. Christos Staikouras, the reasons why about half of the applications were rejected are, among others • were profitable • the reduction in turnover was less than 30%, which is required by the program. • the aid received through the support programs (repayable advance grants, compensation loans, etc.) exceeded the fixed costs • were not included in the affected e.g. pharmacies etc.
The ministerial decision with the details of the specific program and especially for the final amount of the subsidy is expected to be issued next week. According to information, there will be cases of companies for which the amount of the subsidy will reach even 70% to 80%. It is reminded that the companies that meet the following criteria cumulatively are eligible to participate in the Fixed Expense Subsidy Program:
· Employed at least one) full-time employee or two part-time employees, on a part-time basis, as of 1 August 2020 or 28 October 2020 or 1 May 2021, · Belonged on 31 December 2020 to affected sectors as defined in the relevant JMC, · Have submitted VAT and income tax returns, · Are active and have started operations before 31 December 2020, · SMEs are not subject to VAT or are subject to and exempt or are subject to VAT regardless of size, · Were not already problematic in 2019, with the exception, however, of very small or small businesses.
The program concerns loss-making companies that show a drop in turnover of at least 30% in 2020 compared to 2019. However, there will be a special provision for new businesses (start of operations after 1.1.2019) and companies that have recently acquired a branch (from 1.4.2019 to 31.12.2020), as well as for the KTEL.
The amount of support is determined as a percentage of the difference between the fixed costs paid by the company and the aid received. In particular, fixed expenses are the expenses paid by the company in 2020 for specific categories of expenses, as they are reflected in the form E3, such as employee benefits, insurance contributions, energy, water, telecommunications, rents, other operating expenses, debit interest and co-payments. expenses.