COVID LINE: DIRECT AID TO THE SELF-EMPLOYED AND COMPANIES TO SUPPORT SOLVENCY AND REDUCE PRIVATE SECTOR DEBT
The COVID LINE is the new direct aid for the self-employed and companies to deal with the COVID-19. 1 billion will be allocated to direct aid for SMEs and the self-employed in Catalonia. Exactly 993 million euros correspond to Catalonia of the 7 billion euros that the Central Government allocates to direct aid.
What is the budgeted amount?
The endowment of the line corresponding to direct aids arrives to the 7,000 million euros distributing 2,000 million euros between the Balearic and Canary Islands and the other 5 billion euros between the rest of the Autonomous Communities and the cities of Ceuta and Melilla.
Note: The distribution indicators to be applied by Autonomous Community will follow the line of the REAC EU funds using indicators of income, unemployment and youth unemployment.
Who can be a beneficiary?
The recipients of the aid will be the self-employed and non-financial companies that meet the following conditions:
– Viable companies, but with solvency problems as a result of approved restrictions to slow the advance of the virus. Therefore, they will have to prove, through the quarterly declarations of VAT or indirect tax equivalent to a drop in turnover in 2020 above 30% compared to 2019.
– Not having had a negative net result in the 2019 income tax return or IS.
– Have the tax domicile in Spanish territory.
– Not having a home in a tax haven.
– Not being in bankruptcy.
– Not to have ceased the activity at the time of the application.
– Do not distribute dividends or increase the salaries of the management team in a period of two years.
– Commit to maintaining the activity until June 30, 2022.
– Be aware of tax and Social Security payment payments.
– The applicant’s sector must be included in one of the following CNAEs that we incorporate at the end of the document. *
Note: Companies with a turnover of more than € 10 million and operating in several Autonomous Communities will be able to claim the aid in all of them and not only in those with their tax headquarters.
What are the quantities and their characteristics?
The Autonomous Communities and Cities of Ceuta and Melilla will be responsible for establishing the criteria for aid per recipient, so that the following maximum limits are not exceeded:
1. 3,000 euros in the case of employers or professionals who apply the objective estimation system in the Personal Income Tax.
2. For those employers and professionals whose volume of annual operations declared or verified by the Administration, in Value Added Tax or equivalent indirect tax, has fallen by more than 30% in 2020 compared to the year 2019, the maximum aid to be granted will be 40% of the additional drop in income in the case of micro SMEs and the self-employed (with up to 10 workers), and up to 20% for the rest of the companies ( more than 10 workers). Specifically, the self-employed who apply the objective estimation system in the personal income tax may receive up to 3,000 euros and between a minimum of 4,000 and a maximum of 200,000 euros the rest of the self-employed and companies. To set the amount, proportional tranches will be established depending on the size and the drop in turnover. The Autonomous Communities may set additional criteria. These direct aids will be finalist, being used to satisfy the debt and make payments to suppliers and other creditors, financial and non-financial, as well as the fixed costs passed on to the self-employed and companies considered eligible as long as they have been reported between on March 1, 2020 and May 31, 2021. First of all, payments to suppliers will be satisfied, in order of seniority and, if necessary, the nominal value of the bank debt will be reduced, with a reduction in the nominal value of the debt with public guarantee.
Applications
The Spanish Government has agreed to distribute the money through the Autonomous Communities within a maximum period of one month and 10 days, ie at the end of April and subsequently they will define the conditions and time for companies and self-employed people can apply for them.
Calls are expected to open in May and have been paid to beneficiaries before the summer.
Additional help material:
Real Decreto-ley 5/2021, of March 13th, of extraordinary measures to support business solvency in response to the COVID-19 pandemic.
Remember that in order to apply for the grant, you will need a digital certificate or Mobile idCAT. If you do not have a digital certificate, please contact us.
If you think you can meet the requirements and are interested in receiving this grant you can contact us at the following email: emate@lladogrup.com
*CNAE: 0710, 1052, 1083, 1101, 1103, 1413, 1419, 1420, 1439, 1811, 1812, 1813, 1814, 1820, 2051, 2441, 2670, 2731, 3212, 3213, 3316, 3530, 4616, 4617, 4624, 4634, 4636, 4637, 4638, 4639, 4644, 4648, 4719, 4724, 4725, 4741, 4751, 4762, 4771, 4772, 4777, 4782, 4789, 4799, 4931, 4932, 4939, 5010, 5030, 5110, 5221, 5222, 5223, 5510, 5520, 5530, 5590, 5610, 5621, 5629, 5630, 5813, 5914, 7420, 7711, 7712, 7721, 7722, 7729, 7733, 7734, 7735, 7739, 7911, 7912, 7990, 8219, 8230, 8299, 9001, 9002, 9004, 9102, 9103, 9104, 9200, 9311, 9313, 9319, 9312, 9329, 9523, 9525, 9601, 9604.
If you have a CNAE that is not listed, you can contact us. It is very possible that this list will expand as the call approaches.
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