Call for expressions of interest for fixed cost subsidies opens

Phase A of the aid measure is being implemented in the form of subsidy for fixed costs regarding expressions of interest from the businesses, following the publication in the Government Gazette of the Joint Ministerial Decision «Procedure for submitting expressions of interest in the temporary aid measure in the form of a subsidy for fixed costs to businesses that have suffered economic damage due to the emergence and spread of the COVID-19 coronavirus, during the months of April through December 2020.».

As announced by the Ministry of Finance, the purpose of the new program is to provide subsidies to businesses through a credit facility that can be used until the end of the year for the payment of current tax liabilities or even insurance contributions that become payable from July 1, 2021, through December 31, 2021, while eligible businesses will be those that cumulatively meet the following criteria:

• employed at least one full-time employee or two part-time employees under an employment contract, as of August 1, 2020, or October 28, 2020, or May 1, 2021,
• as of December 31, 2020, belonged to affected sectors as defined in the relevant Joint Ministerial Decision,
• have filed their VAT and income tax returns,
• are active and began operations before December 31, 2020,
• are SMEs that are not subject to VAT, or are subject to VAT but are exempt, or are subject to VAT regardless of size,
• They were not already problematic in 2019, with the exception, however, of very small or small businesses.

Furthermore, it should be noted that, as announced on March 11, 2021, the program applies to loss-making businesses that experienced a decline in revenue of at least 30% in 2020 compared to 2019. However, a special provision will apply to new businesses (that began operations after January 1, 2019) and businesses that recently acquired a branch (from April 1, 2019, to December 31, 2020), as well as for intercity bus companies (KTEL).

The amount of the support will be determined as a percentage of the difference between the fixed costs paid by the business and the aid it has received. Specifically, fixed expenses will be calculated based on the expenses paid by the business in 2020 for specific expense categories, as reported on Form E3, such as employee benefits, social security contributions, energy, water, telecommunications, rent, other operating expenses, interest expense, and related expenses.

The amount of aid, the aid intensity, the ceilings, and other details regarding the implementation of the scheme will be determined by a subsequent Joint Ministerial Decision (Phase B), following the completion of the call for expressions of interest, based on the program’s available budget, which is estimated at 500 million euros.

As already noted in the initial announcement of the measure, beneficiaries are required to maintain, on average, the number of employees they have on staff through December 31, 2021.

In this context, there are two steps that must be taken starting tomorrow, May 31, 2021:

Submit an expression of interest by June 17, 2021, via the myBusinessSupport platform of the Independent Authority for Public Revenue (IAPR).

They should complete Form E3, which can be finalized without the need to file an income tax return for individuals and legal entities.