New aid package for companies damaged by C19
By DOTT. MARTIN CORDELLA | 07.07.2020

On 12 June 2020, the Federal Ministry of Finance adopted a new aid package for companies suffering from the consequences of the corona crisis. It is now up to the Länder to implement the regulations that will come into force on 8 July 2020.

The aid is aimed at freelancers and small/medium-sized enterprises that have had to interrupt their business activities, even partially, due to Covid 19. Such an interruption is presumed to have occurred when the turnover in April and May 2020 has fallen by more than 60% compared to the previous year.

A non-repayable grant will be provided in the amount of a share of the fixed costs for the months June August 2020. The amount depends on the loss of sales compared to the previous year:

- a subsidy amounting to 80% of fixed costs in the event of a drop in sales of more than 70%

- a subsidy of 50% of fixed costs in the event of a drop-in sales of between 50% and 70%

- a subsidy amounting to 40% of fixed costs in the event of a drop in sales of between 40% and 50%

fixed costs include, for example, rents for business premises, ancillary costs, interest on loans, lease payments, property taxes, insurance premiums, staff costs (lump sums apply here), tax consultancy fees, etc.

Unless there are exceptional cases and the Land does not grant any further subsidies, the payment cannot exceed the following amounts:

-€ 9,000 for companies with up to 5 employees;

-€ 15,000 for companies with up to ten employees;

- € 150,000 for companies with more than ten employees.

Deviating from the procedure for previous assistance, the application must now be made by a tax consultant or auditor, who must prepare the relevant documents showing the decline in turnover and the amount of fixed costs.

The aid package will come into force on 8 July 2020 and applications must be submitted by 31 August 2020.

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