Strong support for parts of the larger circle – small communities will be eligible

The Ministry of Economy and Innovation (EIM) has ordered that small companies (MB), sole proprietorships (SP), limited companies (K) B) or real companies (TŪB), whose owners, members or other participants in the PIT, also be eligible for self-paid support. So far, these institutions have not been able to request support, as support is provided only by the GPM paid by the company during 2019.

“The subsidy calculation also includes the benefits received from the company by MB members, IĮ owners, KŪB and TŪB participants and the amount of GPM payable from them, respectively,” the project states.

The amount of the subsidy to MB, IĮ, KŪB and TŪB will be determined based on the amount of the PIT calculated from the benefits declared to the members, owners, participants or employees of these companies. MB members, IĮ owners, KŪB and T mustB participants must have declared the income received in the annual declarations.

EUR 500 for non-income generating companies

Companies created before the end of November last year will be able to receive a grant of € 500 if they did not receive income during the quarantine period. Companies whose activities are included in the list of restricted economic activities will be eligible for support.

“This will allow more companies affected by COVID-19 to ensure their liquidity,” the EIM document reads.

So far, only newly established nonprofits, which were established since 2019, have been eligible for € 500 aid. November 1, 2020, but no later than November 30

459 thousand are registered in the Cr.lt database. companies, of which approximately half operate – 234 thousand. companies – do not operate.

However, there are safeguards in the description of the subsidy so that so-called “zombie companies” that do not operate cannot benefit from the aid.

The applicant company must have at least one employee on January 1 and at the time of application. The applicant cannot be reorganized, bankrupt, liquidated or otherwise reorganized, he must meet the minimum criteria of a reliable taxpayer. The company must also have submitted a set of annual financial statements for 2019 to the Registry of Legal Persons. It is verified that the company was not considered in crisis before the quarantine was announced.

Representatives of the Ministry explained that the description of the award of subsidies will be clarified, indicating that applicants established before November 1, 2019 must pay GPM for 2019, and the requirement that by November 2019 companies established in 2019 must have at least an employee in 2019. as of November 1.

“There are technical changes related to the fact that small communities can also benefit from the support,” explained Vice Minister Vincas Jurgutis.

In the first support package, the sale of 150 million is expected. but so far the companies have reached 25 million. The company submitted applications for 50 million euros. The Minister of Economy and Innovation Aušrinė Armonaitė reported last Friday.

Last week, the Minister met with the heads of the State Tax Inspectorate, the Lithuanian Business Support Agency, and assured that the pace of distribution of support was not satisfactory.

“The pace of support is unsatisfactory and we have asked for three things: the proactivity of the institutions to identify and solve problems and find solutions; – A. Armonaitė spoke after the meeting.

In the first grant package, small and medium-sized companies with revenues of up to € 50 million are eligible. euros. The maximum amount of support is 25 percent of the GPM paid in 2019. Those companies whose turnover in one month has decreased by at least 30 percent can apply for help. The billing for 2020-11-01 – 2021-01-31 is compared to the corresponding period one year ago. Companies that have not received income through quarantine can also apply.

Agricultural, fishing, aquaculture, credit and financial institutions are not eligible.

The grant may not be used by the company to pay dividends, reduce capital, disburse funds to the applicant’s participants, buy back its own shares, or make other capital payments to the applicant’s participants, as well as for loans to the applicant’s participants.

Lithuanian Statistics will make public the information on the support.

The Government also approved another EIM proposal: to oblige the responsible institutions to submit data to Statistics Lithuania within 5 working days of the granting of the aid.

Statistics Lithuania will receive information on the beneficiary, the amount of the aid, the date of grant, the name of the aid measure and the beneficiary’s economic activity number.

“EIM, in cooperation with the Lithuanian Department of Statistics and the Government Strategic Analysis Center, will publish all the statistics on its managed business support measures in real time. In the future, it is planned to combine data from all institutions managing business support into a data scoreboard, ”explains the EIM document.