COVID-19 and Business - "Reimbursable Advance" - The key points you need to know (update 06/07)

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COVID-19 και Επιχειρήσεις – “Επιστρεπτέα Προκαταβολή”

[UPDATE 06/07]

Week of the new phase of the Repayable Advance

"Reimbursable Advance Week" is the one that has just started, as people are invited to apply on MyBusinessSupport until July 15.

 

In the 1 billion euros of the second phase are added to the approximately 400 million euros that remained unclaimed from the first phase, but according to estimates of the GLC, the beneficiaries this time will be more than double - that is, more than 110 thousand - as not only the basic criterion of turnover will cover many more because of the quarantine in April-May, but on top of that, the "tank" includes individual businesses.

The second phase of the measure concerns around 100,000 small and medium-sized entrepreneurs, self-employed and freelancers, who can apply even if they do not have any employees or even if they do not yet have a cash register. However, as long as they have employees, they are obliged to maintain until 31 October 2020 the number of employees they had on 1 June 2020, based on the ERGANI system data.

According to the joint ministerial decision of the Ministers of Finance, Development and Investment, issued on 3/7, beneficiaries have until July 15 to submit their applications.

The minimum amount they can collect is €2,000 for businesses that do not employ any staff

- up to EUR 4,000 for those with between 1 and 5 employees

- up to EUR 8,000 for companies with 6-20 employees

- up to EUR 15,000 for companies with 21-50 employees

 

 

Beneficiaries who received money from the first repayable advance cycle and are included in the beneficiaries of repayable advance 2 will have the amount already received from the first cycle deducted. As noted, the minimum aid cannot be less than EUR 2 000.

In connection with the reimbursement procedure, the amount of the aid is subject to interest at the rate of 0,94% per annum. For the period up to 31 December 2021, a grace period is granted without interest, during which the recipient undertaking is not obliged to repay any part of the capital or interest.

After the grace period, the amount of aid received will be repaid (from 1/2022) in forty (40) equal monthly instalments, each of which is payable on the last day of the month. In other words, repayment will extend until mid-2025.

The amount of the aid is displayed with any other debts of the company, on the website of the AADE www.aade.gr under the option "myTAXISNet/ my account/ my account/ consolidated information/ Details of debts outside the regulation and payment".

It is also possible to:

(a) reimbursement of only 70% of the aid, if the turnover of the undertaking, one year after receiving the aid, is reduced by 70% or more in relation to the reference turnover or gross receipts,

(b) reimbursement of only 60% of the aid, for undertakings employing more than twenty (20) workers on 1 June 2020, provided that they maintain on average the number of workers they employed on 1 June 2020, on the basis of the ERGANI system data, until 1 June 2021.

Obligations of beneficiaries - Penalties

1. The enterprise is obliged to maintain until 31 October 2020 the number of employees it employed on 1 June 2020, based on the ERGANI system data. The check will be carried out electronically via the ERGANI system and will relate to the average number of employees during this period.

2. If the company is receiving aid under the Temporary Framework, it must submit by 30 November 2020 the following documents.

3. Undertakings active in the processing and marketing of agricultural products are required not to pass on all or part of the aid granted to primary producers.

4. In the event that an audit of the undertaking by the tax administration or other competent control body reveals non-compliance with the terms of this Regulation, an overrun of the maximum aid ceiling or the submission of false information, immediate repayment of all the aid granted shall be requested, with immediate effect.

 

Source: reporter.gr  & iefimerida.gr

 

 

This post is purely informative and does not form part of any specialist advice. The experienced team of EPIDOSIS is always at your side to answer your questions and responsibly undertake the submission of the application for your business, avoiding any kind of omissions and errors.

Fill in the relevant contact form HERE

 

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[UPDATE 23/06]

Extension of the deadline for the second round

With a relevant decision amending the Decree GDR131/13.6.2020 on the Reimbursable Advance 2 - Phase A (expression of interest), signed today by the competent Ministers of Finance and Development and Investment:

(a) the deadline for expressions of interest is extended until Friday 26/6/2020 and
(b) paragraph (a) is amended. 3 of Article 1 regarding the possibility of submitting an expression of interest based on the Temporary Framework, given that the third amendment of the Temporary Framework is expected to be approved by the EU, allowing the inclusion of small and micro enterprises even if they were in difficulty on 31/12/2019.
This broadens the scope and gives the possibility to include other companies.

Private companies of any legal form, as well as sole proprietorships without employees, can participate in the second round of the Refundable Advance, provided they have a tax cash register.

Indicative examples of new beneficiary sole proprietorships without employees are the following: retail trade of small sole proprietorships without employees, including but not limited to grocery stores, convenience stores, kiosks, gift shops, pharmacies, bakeries, florists, candy stores, clothing and footwear stores, hair salons, and any retail store with a cash register. Participation is also open to farmers' market vendors, taxi operators and small individual businesses without employees in catering, cafés, cafeterias, cafeterias, cafeterias, etc.

Source: cnn.gr

 

[UPDATE 15/06]

Premiere for the new repayable advance round

The new cycle of the repayable advance opens today, June 15, in which more businesses can join and receive low-interest state loans as the right to apply is also available to sole proprietorships that do not employ staff but have a cash register.

Affected businesses will have to apply by 22 June on the myBusinessSupport online platform of the Hellenic Administration of Foreign Affairs, while the payment of the amounts to the beneficiaries will be made in early July.

According to the Joint Ministerial Decision, companies affected by the coronavirus, namely Municipal Water Supply and Sewerage Enterprises (MWS) and private companies of any legal form, including individuals, which have their headquarters or permanent establishment in Greece and operate legally, are entitled to apply.

Except for the following:

Sole proprietorships that did not employ any employees on a salaried basis on June 1, 2020, that do not have a tax cash register.

Enterprises employing more than 1,000 employees with a dependent employment relationship on 1 June 2020.

Businesses that are inactive from April 2019 onwards, as evidenced by the data kept in the tax register of the AADE or by the submission of zero VAT returns throughout this period.

Source: cnn.gr

[UPDATE 12/05]

Refundable deposit: Payment is expected to start from today – Applications continue until 15 May. What happens to those applications rejected

Since the early hours of Monday 11.05, the AADE's platform has been operational and is expected to start paying the amounts of the refundable advance to businesses that completed yesterday in the "myBusinessSupport" of the AADE the Application for Grant, selected the final amount and accepted the terms of repayment.

Specifically, the first 9,221 applications were finalised yesterday, while the number of visits to the platform exceeded 105,000. The total amount to be made available is around €1 billion under the first phase of the repayable advance.

According to a circular of the Governor of the Hellenic Tax Administration G. Pitsilis, enterprises whose applications for the state loan were rejected have the opportunity within 5 working days to submit an objection on the platform "myBusinessSupport" of the Hellenic Revenue Service with a request for reconsideration. Most of the rejected applications were submitted by sole proprietorships which do not employ any workers. Also, after the submission of the final application for aid, the enterprise may amend this application more than once until the end of the day on which it was originally submitted. After that day, the final application may not be amended, according to the APE.

It is recalled that the online platform for submitting applications for the refundable advance will remain open until Friday 15 May. In the circular of the Governor of the AADE clarified, among other things, the following:

The login to the electronic platform "myBusinessSupport" is carried out using the relevant credentials of the O.P.S. TAXISnet of ADDE. By entering the application and submitting the application, the company certifies the accuracy of the data provided and consents to the processing of the data available to the AADE, as well as the data submitted, for the purpose of determining the final amount of aid.

Source: cnn.gr & ethnos.gr

See the related video

 

This post is purely informative and does not form part of any specialist advice. H experienced team of EPIDOSIS is always at your side to answer your questions about the latest developments and to responsibly take over for you the submission of the declaration for the "Repayable Advance" on the online platform of the ADPE avoiding any kind of oversights and mistakes

Call us today at 2310 477725 or fill out the contact form HERE

 

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[UPDATE 06/05]

Grace period in 2020 and 2021, with an interest rate below 1%. Which businesses are being given up to 40% of aid - Deadline for filings is 15/05

Next week the €1 billion of the "repayable advance" is expected to be disbursed to around 90,000 businesses. This liquidity support through government loans, will have a grace period in 2020 and 2021 and an interest rate currently below 1%. In addition, the State will give away 30%-40% of the amount of the "refundable advance" which businesses will receive in the coming days if certain conditions are met.

In particular, the joint decision of the Ministers of Finance and Labour stipulates that undertakings are allowed to repay only 70% of the aid if their turnover one year after the expiry of the aid is reduced by 70% or more in relation to the reference turnover or reference gross receipts on the basis of which the aid was approved.

It is also possible to reimburse only 60% of the aid for companies that employed more than 20 workers on 31 March 2020, provided that they maintain the average number of workers they employed on 31 March 2020, based on the data in ERGANI, until 31 March 2021. According to the decision:

  • Interested businesses can apply until 15 May 2020 for the granting of a "refundable advance" on the "myBusinessSupport" online platform, which is an application of the AADE's Taxisnet OPS (www.aade.gr/mybusinesssupport).
  • The minimum amount of the "repayable advance", which is essentially a loan from the tax authorities, will range from €2,000 for businesses that do not employ any workers to €30,000 for those employing more than 50 workers. The final amount can be much higher, up to a maximum of EUR 800,000.
  • Those who receive aid will not pay interest or principal until 31 December 2021.
  • From January 2022, the amount of the aid will be repaid in 40 equal monthly instalments. Each instalment will be paid on the last day of the month.
  • The aid amounts are recorded in the taxis as debts and in the event of late payment, enforcement measures are applied.
  • Those who will make use of the "refundable advance" will be under the audit microscope of the tax authorities. The tax audits will concern both the past (last three years) and the future, which will concern the course of turnover, with the aim of excluding cases of tax evasion. Severe penalties and thorough checks by the tax authorities are also envisaged for those who receive the "tax loan" without being entitled to it.
  • The conditions for the inclusion of businesses are also subject to the condition of a reduction in the turnover of the business in the first quarter of 2020 or in the month of March, in order for it to become a beneficiary. This cuts out those businesses that had no or little reduction in turnover due to the pandemic, but mainly those that in previous years concealed their actual income. The comparison is made with the average turnover of the last three years, i.e. since 2017.

Source: tanea.gr

 

This post is purely informative and does not form part of any specialist advice. H experienced team of EPIDOSIS is always at your side to answer your questions about the latest developments and to responsibly take over for you the submission of the declaration on the electronic platform for the implementation of the temporary support measure 'repayable advance' avoiding any kind of oversights and mistakes

Call us today at 2310 477725 or fill out the contact form HERE

 

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[UPDATE 24/04]

The procedure for the "repayable advance" is entering the final stretch. The General Accounting Office of the State in cooperation with the AADE are finalising the details for the definition of the criteria on the basis of which the selection will be made among the 139,000 companies that have expressed interest.

  • The main criteria that are currently being worked on are:
  • The reduction in turnover and profits recorded compared to the previous year's period
  • The extent to which the company has made use of the support measures announced, such as the suspension of employment contracts, as the larger the number of employees in relation to the total number of employees, the lower the labour costs and therefore the less damage the company will suffer.
  • The purchases the company has made.

The criteria are expected to be finalised in the coming hours as the aim is to disburse the money to the selected companies in late April/early May. The algorithm that will be set will also determine the amount that each company will receive, which cannot be higher than 500,000 per company.

The 'repayable advance' received by the selected companies will be reimbursed either in full or in part. The amount will be repaid over a period of 5 years with a grace period in the first year.

The plans of the Ministry of Finance (no final decision has been taken) include the repetition of this measure in May with another 1 billion euros.

Source: naftemporiki.gr

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Extended until Tuesday 21 April 2020 the deadline for businesses wishing to apply for the Reimbursable Advance. As of 08.04.2020, over 30,000 final applications and another 6,400 provisional applications had been submitted on the platform of the AADE.

According to the Legislative Content Act of 30.03.2020 Measures to deal with the pandemic of the coronavirus COVID-19 and other urgent provisions, loan aid is given to businesses to cover the effects suffered by almost all economic units in no case is not linked to the advance payment of income tax. For the submission of the application for the expression of interest, it is not a prerequisite that the company is included in one of the activity code numbers (ID numbers) included in the ministerial decisions issued for the suspension of tax obligations and the granting of any kind of aid to affected companies due to the COVID-19 virus.

 

  1. Subsidiary undertakings

1.1 In the above financial Private enterprises of any legal form and regardless of the sector, including individual enterprises, which employ between 1 and 500 employees, which have their headquarters or permanent establishment in Greece and have been financially affected due to the emergence and spread of the COVID-19 coronavirus, shall submit an expression of interest for receiving aid in the form of a refundable advance on the platform of the previous article.

1.2 The conditions and therefore the restrictions are the following:
α) basic requirement Businesses must employ between 1 and 500 employees. Therefore, those that do not employ any staff are not covered.

b) Additional conditions and possibility to submit :

  1. i) undertakings which are not in difficulty within the meaning of Regulation No 651/2014 (OJ L 187/26.6.2014) or which were not in difficulty on 31 December 2019 but have experienced difficulties or have subsequently become so as a result of the emergence and spread of the COVID-19 coronavirus, and which do not have at their disposal previous aid declared incompatible by a decision of the European Commission,
  2. ii) enterprises that meet the requirements of Regulation 1407/2013 (OJ L351/1 of 24.12.2013) and have not already exhausted the ceiling set in the Regulation for the three-year period 2018-2020,
    Article 1 : The Regulation applies to aid granted to undertakings in all sectors except:

(a) aid to undertakings active in the fisheries and aquaculture sectors covered by Council Regulation (EC) No 104/2000,

(b) aid granted to undertakings active in the primary production of agricultural products,

(c) aid granted to undertakings active in the processing and marketing of agricultural products in the following cases ...

(d) aid for export-related activities to third countries or Member States, in particular aid directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current expenditure linked to the export activity

(e) aid contingent upon the use of domestic over imported goods.

  • - Article 3 : ..... 2. The total amount of de minimis aid granted per Member State to a single enterprise shall not exceed EUR 200 000 in any period of three fiscal years. ..........in accordance with Regulation No 1407/2013.
    iii) Businesses that are not inactive from April 2019 onwards, as evidenced by the data kept in the tax register of the Hellenic Tax Administration or by the submission of zero VAT returns throughout this period.

 

  1. Content of the aid

It is aid in the form of a loan, repayable in full or in part, in the form of a 'repayable advance'.
It should be noted that the part that will not be reimbursed has not yet been determined. The aid in question it is planned to be granted in accordance with the European Union frameworks (regular and ad hoc) for State aid.

In particular: The aid is granted in accordance with the provisions of the European Commission Communication C(2020) 1863/19.3.2020 "Temporary framework for State aid measures to support the economy during the current outbreak of COVID-19" and following the approval of a relevant aid scheme by the Commission.
'Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid (the de minimis Regulation) stipulates that support measures of up to EUR 200 000 per company granted over a period of three years do not constitute State aid within the meaning of the Treaty. The same Regulation also provides that guarantees of up to EUR 1,5 million do not exceed the de minimis threshold and therefore do not constitute State aid. Therefore, Member States may grant such guarantees without the need to calculate the corresponding State aid equivalent and without any administrative burden." ( See in detail : https://eur-lex.europa.eu/legal-content/EL/ALL/... )

The Reimbursable Advance Scheme will be financed both from Community funds, under the special financial instrument for the response to the coronavirus crisis, and from the State Budget.

 

  1. Overall aid amount, eligibility and aid ceiling

3.1 The amount of the aid in total for all companies amounts to EUR 1 billion.
"The initial total amount of the financing scheme is €1 billion and its operation consists of direct financial support to enterprises, which is, in whole or in part, repayable to the State depending on the performance of the enterprise." ( MINISTRY OF FINANCE / PRESS OFFICE/3-4-2020 )

3.2 « Eligibility is based on the assessment of the current situation compared to the previous one. This will be done through a standardized, automated mechanism created by the Ministry of Finance, the General Accounting Office with the GAO, based on tax data and other economic indicators. The amount of aid will also be determined in a standardized way ......".
"The eligibility of enterprises is based on the assessment of their current situation compared to their previous situation. The mapping will be derived through a - standard - monitoring and evaluation mechanism of the Ministry of Finance (GLC and AADE), based on tax data and other relevant economic and business indicators."
The amount of aid for each undertaking will therefore be calculated on the basis of a relative distribution of the total amount in relation to the total number of undertakings expressing an interest.

3.3 Maximum aid intensity per undertaking "The amount of aid to each undertaking will be determined - in a standardised way - by the change in the undertaking's current situation, taking into account other characteristics of the undertaking. Aid through the repayable advance scheme will not exceed a maximum of EUR 500 000 per undertaking." .

 

  1. Commitments by Businesses

4.1 Non-dismissal clause "The Repayable Advance scheme is aimed at supporting businesses to enable them to maintain employment. Consequently, businesses that take advantage of the scheme are bound by the no redundancy clause, which, as we announced, will apply from 30 March 2020. One point that has not yet been clarified is that the duration of this commitment has not yet been defined"

4.2 Repayment of the "Aid" (Time and Interest Rate) The 'repayable advance', in whole or in part, depending on the viability of the company, will be repaid to the State over the next few years at an extremely low interest rate, without the borrowing rate having been set yet. The total duration of the loan is five years, a grace period is granted for the first year, with no obligation to make instalments, and repayment is made over the following four years in equal monthly instalments, i.e. 48 monthly instalments.

 

  1. Actions to be taken by companies that want to be included

5.1 Login to the "platform" www.aade.gr/mybusinesssupport The Independent Authority for Public Revenue (AADE) has created an online platform entitled "myBusinessSupport", through which applications for aid in the form of an advance are submitted. The platform is offered as an application of the O.P.S. TAXISnet of the AADE and access to it is carried out using the relevant credentials. By entering the application and submitting the expression of interest, the undertaking certifies the accuracy of the data provided and consents to the processing of the data available to the AADE and the data submitted, in order to carry out an automated check of the conditions for granting and the calculation of the amount of aid. In addition, the declaration of the IBAN account by the company in the personalised information of TAXISnet, its editorial validity and its verification by the respective payment institution are checked automatically and as a precondition.

5.2 Completion of data during the expression of interest Businesses shall fill in the following information on the platform: When expressing interest:

α) Business subject to VAT, which they observe:

a1.Non-accounting books, complete the VAT turnover (code 312 of the VAT return), relating to the first quarter (January - March) 2020,

a2. double-entry books, complete the VAT turnover (code 312 of the VAT return), which relates to the month of March 2020,

β. Business not subject to VAT, which they observe:

b1. simple books, complete 1. the total gross income (code 047 of form E3) for the tax year 2019, 2. the total expenses for the tax year 2019; 3. the gross income for the first quarter of 2020, aggregated for the quarter,

b2. double-entry books, complete 1. the total gross income (code 047 of form E3) for the tax year 2019, 2. the total expenses for the tax year 2019.
3. the gross revenue for the first quarter of 2020, separately for each month. Total expenses are determined by code 580 of the E3 form, reduced by code 581 (employee benefits) and by code 585 (miscellaneous operating expenses) in the part relating to the rental costs of the business.

5.3 Completion of data from April to December 2020 For the months April to December 2020, businesses, regardless of the type of books kept, complete the VAT turnover or gross receipts for each month, as appropriate, by the tenth day of the following month.
The above information completed by the company is verified by the VAT and Income tax returns in the respective tax years, when they are submitted.

5.4 Additional data automatically extracted In order to complete the picture of the enterprise and to check the fulfilment of the conditions for granting the aid, the Hellenic Statistical Authority may record on the platform other information held in its electronic files or sent to it by other public and private bodies. Indicatively, this may include comparative data on revenue and expenditure of previous periods, as derived from the declarations of the undertakings. Note: The submission of an expression of interest as described above does not create any right or claim on the part of the applicant companies.

 

  1. Deadlines for submission

The expression of interest and the above supporting documents are to be submitted on the platform by 10.4.2020, which is very short in view of the difficult circumstances.\

 

  1. Dealing with "Reinforcement"

The aid in the form of a 'repayable advance' is unseizable, tax-free to the extent that it is not repaid and cannot be offset against any debt.

 

  1. How the 'Aid' is granted

The "refundable advance" will be granted directly by the state, through Taxis, and in essence it concerns a debt to the Greek State and if it is not refunded according to the refund deadlines, the Hellenic Tax Authority will be able to take all the necessary steps to collect it.
The conditions for eligibility for the repayable advance measure, the procedure for applying for and granting the aid, the method for calculating the amount of the aid, the conditions and procedure for its reimbursement in whole or in part and any other relevant details will be laid down in a similar decision to be adopted after the deadline for submitting applications under this Regulation. A Joint Ministerial Decision will specify, in addition to the basic conditions and elements for the expression of interest on the part of undertakings, the detailed parameters and characteristics that will determine the immediate implementation of the financial scheme of the Repayable Advance.

 

  1. What the company must weigh up in order to proceed to receive a Repayable Advance

The loan through the Repayable Advance is in essence a loan through the working capital, in order to stimulate the liquidity of the company, the company must pay particular attention to a "no redundancy clause" which does not even specify the duration of the freeze, in addition to the fact that the debt will be paid through the Hellenic Revenue Authority in the event of non-payment of the Refundable Advance in whole or in part as we describe above, will have tax compliance problems but also adverse actions such as the seizure of bank accounts. Although it is not clear how much of the capital will be given away and what the interest rate which, however, appears to be a low interest rate of 1% to 1.5%, the above loan assistance can provide a working capital important for the return to normalcy of the enterprises.

Source: e-forologia.gr

 

 

This post is purely informative and does not form part of any specialist advice. H experienced team of EPIDOSIS is always at your side to answer your questions about the latest developments and to responsibly take over for you the submission of the declaration on the electronic platform for the implementation of the temporary support measure 'repayable advance' avoiding any kind of oversights and mistakes

Call us today at 2310 477725 or fill out the contact form HERE

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