Activation of the second phase of the subsidy for the fixed costs of businesses, following the publication of Joint Ministerial Decision DGOU808/23-07-2021 (Government Gazette 3354/Β ́/26-07-2021) "Procedure and conditions for the granting of aid in the form of a subsidy for fixed costs for the period April-December 2020 to companies that were financially affected due to the appearance and spread of the COVID-19 coronavirus". The deadline for submitting applications is the 4th of August 2021 on the online platform "myBusinessSupport" of AADE ( https://www.aade.gr/mybusinesssupport ), as noted in the relevant announcement of the Ministry of Finance.

Who it concerns

An application can be submitted by companies that had expressed interest during the first phase of the measure. However, they must meet the conditions set out in the relevant JMD. The purpose of the scheme is to subsidize businesses, through credit, which can be used until the end of the year. The credit pays off current tax debts and/or insurance contributions that become payable by 1.7.2021 to 31.12.2021. When applying, undertakings shall declare the amount of aid they wish to use for the right to deduct current tax liabilities. Also the amount of aid they wish to use to repay current insurance obligations.

A grant may be awarded either under point 3.12 or under point 3.1 of the European Commission's Temporary Framework. In the case of an allocation under 3.1, the cumulation ceiling for all aid granted under 3.1 is EUR 1.8 million. EUR 270 000 for the fisheries and aquaculturesectors or EUR 270 000 for the primary production sector or EUR 225 000 for the fisheries and aquaculture sector the agricultural sector .

Who it concerns the second phase of the grant

It is recalled that the scheme concerns loss-making companies that show a turnover drop of at least 30% in 2020, compared to 2019. Also for those subject to VAT in the period April-December 2020, compared to the corresponding period of 2019. Special provision, however, exists for new businesses (start of operations after 1.1.2019). Businesses that have recently acquired a branch (from 1.4.2019 to 31.12.2020) as well as for KTEL buses. Enterprises may join the measure in accordance with section 3.1. of the Temporary Framework, provided that the revenues from sales of goods and provision of services for the year 2020 are at least 30% lower than the total expenses, including costs sold, regardless of the decrease in their turnover or revenues.

Determination of costs for phase B

The amount for the second phase of support is determined as 20% of the difference in the fixed costs paid by the company. This also includes the aid received during the reference period. In particular, fixed costs are calculated as the costs paid by the undertaking for specific categories of costs. For example, employee benefits, insurance contributions, energy, water, telecommunications, rent, other operating expenses, interest and related expenses.

For companies submitting a request under Section 3.1 of the Temporary Framework

The amount of aid may not exceed 70% of the pre-tax loss of the enterprise, in the case of small and micro-enterprises 90% of the loss before tax. The companies KTEL S.A. and KTEL, for which this limit does not apply, are excluded.

For companies applying under Section 3.12 of the Temporary Framework

The amount for the second phase of the aid may not exceed 70% of the company's pre-tax loss. In the case of small and micro-enterprises 90%, the loss before tax of the period April to December 2020. Provisional aid measures from which the undertaking has benefited under the Temporary Framework shall be taken into account.

Conditions for phase B

Undertakings applying to receive the aid under Section 3.12 of the Temporary Framework shall submit, by 30 September 2021, a certificate from an accountant and legal representative of the undertaking. Where they are subject to the obligation to audit financial statements, they shall submit a certificate from the statutory auditor on the basis of the latest audited financial statements covering the aid period, attesting to the company's pre-tax loss for the period April to December 2020, taking into account the temporary aid measures from which the undertaking has benefited under the Temporary Framework.

Beneficiaries are required to maintain on average the number of staff they employ until 31 December 2021.