The government is modifying the procedure to support the most affected companies: a benefit of up to 350 thousand. it will be calculated in three ways

The government approved a subsidy concept on Wednesday aimed at companies most affected by COVID-19. Next, a media description will need to be approved.

After negotiations with the social partners, the concept changed from the original proposals. Now it is estimated that those companies whose turnover has decreased by 50% will be eligible for assistance. and more (previously there was a drop of more than 60%)

The maximum amount of subsidies has also been increased to 350 thousand. EUR (before 100 thousand euros).

Decreases in earnings and changes in the number of employees will no longer be evaluated. However, new requirements related to having an IBAN account are included, companies will have to file income statements, personal income tax and value added tax for 2019 and 2020.

“The support ceiling will be calculated for one applicant,” said Minister of Economy and Innovation Aušrinė Armonaitė, explaining that participation in groups will no longer be assessed.

Three ways to get support

According to A. Armonaitė, profits will be calculated in three ways.

“The first way, as before, is related to the personal income tax and the drop in turnover. We follow the recommendations of the Bank of Lithuania and other recommendations to distribute the support according to the taxes paid, ”says A. Armonaitė.

In this case, if the company’s turnover falls by 50%, it will be able to recover 50%. The PIT paid in 2019 and, if it falls further, the PIT recovered by the corresponding amount will increase.

The grant will be awarded to companies whose average monthly billing for coronavirus (COVID-19) has decreased by at least 50%. Comparable period: turnover of the period from 11/01/2020 to 01/31/2021 with the corresponding period of 2019. If the activity was prohibited after 2020. On November 30, the comparison period of the decrease in the billing is from December 31, 2020 to January 31, 2011 with the corresponding period of 2019.

In this case, the amount of the subsidy depends on the average drop in a month of the economic activity of the company and the amount paid in 2019. personal income tax, but not more than 350,000 EUR per applicant.

“The second way: there will be an opportunity to cover up to 70%. Discovered costs, but this will require a fabric. It will be possible to carry out the audit after receiving the payment”, explained A. Armonaitė

In the second case, the amount of the subsidy may not exceed 70%. Fixed costs not covered, but not more than 350,000 EUR per applicant.

“The third way is to request reimbursement of fixed costs without an audit, if the lease is registered in the Records Center,” says A. Armonaitė.

In this case, the amount of the grant is up to 70%. Fixed costs not covered, but not more than 40,000 EUR.

A. Armonaitė explained that rental costs not covered may include rent and similar costs.

“We are forced to continue the quarantine, and the sectors particularly affected have emerged, which, unfortunately, we still cannot open, although we want to and will fight for that,” said A. Armonaitė.

The budget has been increased by 50 million euros. up to 120 million euros. euros. Additional funds were diverted from the first support package, in which companies requested less support than allocated.

It was previously announced that new support could start on April 14. Applications will be accepted by the State Tax Inspection.