CORONA CRISIS - FIXED COST SUBSIDY APPLICATION POSSIBLE AS OF 20.05.2020

Companies in those industries that are particularly affected by measures such as entry bans, travel restrictions or assembly restrictions and have liquidity problems, as well as companies that are facing major sales losses as a result of the Corona crisis and the threat of...

We have compiled the most important questions about the fixed cost subsidy for you in further detail.

 

Who can apply for the fixed cost subsidy?

Companies with registered offices or permanent establishments, and with significant operating activities in

 

Which companies do not receive fixed cost subsidies?

companies that pursue an aggressive tax policy and/or are domiciled in a low-tax country. Also, no bonus payments may be paid to members of the Management Board or managing directors in the amount of more than 50% of their bonus payment for the previous fiscal year. Companies that have more than 250 employees measured in full-time equivalents as of December 31, 2019, and have terminated more than 10% of their employees during the period under consideration instead of using the short-term model. The entire financial and insurance sector (banks, credit institutions, insurance companies, securities firms, securities services companies, pension funds and other financial companies subject to prudential supervisory regulations) is excluded. In addition, entities majority-owned by local authorities and other entities under public law are also excluded.

 

Subject of funding?

Fixed costs such as business space rentals and leases, business insurance premiums, interest expenses, the financing cost portion of lease payments, expenses for other contractual payment obligations necessary for operations that do not involve personnel, business license fees, payments for electricity/gas/telecommunications, personnel costs incurred for processing cancellations are eligible.

An appropriate entrepreneur's wage can also be taken into account as part of fixed costs for sole proprietorships and partnerships, less ancillary income. The entrepreneurial wage is calculated on the basis of the last assessed previous year (taxable profit/months of entrepreneurial activity) and amounts to a minimum of 666.67 and a maximum of 2,666.67 per month. Furthermore, a minimum of 50% loss in value of perishable and seasonal goods is subsidized as part of the fixed costs.

 

What are fixed costs?

Fixed costs such as business space rentals and leases, business insurance premiums, interest expenses, the financing cost portion of lease payments, expenses for other contractual payment obligations necessary for operations that do not involve personnel, business license fees, payments for electricity/gas/telecommunications, personnel costs incurred for processing cancellations are eligible.

 

Repayment of the grant?

No, subject to correct information regarding sales and amount of fixed costs.

 

How are the fixed costs calculated?

The assessment basis is the company's fixed costs and lost sales from March 16, 2020, and at the end of the Covid measures, but no later than September 15, 2020.

 

How much is the fixed cost subsidy?

The fixed cost subsidy is staggered and dependent on the company's loss of sales and can be up to 75%.

Wenn die Fixkosten binnen 3 Monaten 2.000 Euro übersteigen, zahlt der Bund:

  1. 40-60 % Ausfall: 25 % Ersatzleistung
  2. 60 -80 % Ausfall: 50 % Ersatzleistung
  3. 80-100 % Ausfall: 75 % Ersatzleistung
 
Where can the fixed cost subsidy be applied for?

Via the FinanzOnline access of each company. A tax advisor or auditor must review the application before submission.

 

How is the payment made?

The payment will be made in three tranches. The first third can be applied for from May 20. Another third can be applied for from August 19. The remainder can be applied for from November 19. Companies that do not have seasonal goods and submit a balance list can apply for the remaining 2/3 as early as August 19.

 

Can companies that have already received support also apply for the fixed cost grant?

Yes, but the previous support (e.g. hardship fund) will be offset. This also applies to compensation under the Epidemics Act.
 
As described above, a tax advisor or auditor must approve or submit the application, so we are happy to assist with the application and other inquiries and are always available to answer questions.