Revenue replacement, fixed cost subsidy, loss compensation: the new Corona aid is quite complex in detail.
The furniture trade receives only 20 percent of its sales
The federal government is trying to get as many companies and jobs as possible through the corona crisis and the current lockdown with state aid worth billions.
On Monday, Vice Chancellor Werner Kogler and Finance Minister Gernot Blümel presented the details of the already well-known instruments “Fixed Cost Grant II” and “Extended Sales Compensation”.
The news in advance:
Application immediately
The legal basis is in place, the Internet forms have been adapted, and the new help can therefore be requested via Finanz-Online since Monday.
Broad calculation basis
Fixed cost subsidy II is much more attractive for companies than its predecessor in spring. This is because now significantly more cost components (sometimes also personnel costs) are accepted by finance.
Graduation in trade
And in retail it is now clear which sub-sectors can expect a 20, 40 or 60 percent replacement in sales. While the closed, body-hugging service providers such as hairdressers or masseurs get 80 percent sales compensation for the period of the lockdown, in retail it is decided on the basis of three criteria which business gets how much money: gross profit of the respective industry, possible catch-up effects after the end of the lockdown, and the Perishability and seasonality of goods. The gross profit is weighted twice as the most important factor, i.e. the trader's margin if you will.
60 percent replacement So it happens that, for example, a flower shop that has to dispose of its goods in lockdown and cannot pick them up receives a sales replacement of 60 percent. However, this replacement also applies to shops that sell shoes, bags, leather goods or clothing. There, too, the autumn goods are often no longer for sale in December or the gross profit is low.
40 percent replacement Companies from the metal goods, building supplies, sporting goods, books and magazines, curtains, carpets or wallpaper industries receive 40 percent of the sales they lost in the lockdown, according to the Treasury.
20 percent replacement If there is hardly any loss in value of the goods during lockdown, as in the furniture trade, there is only 20 percent. This also applies to business with household appliances or the motor vehicle trade, because its customers can easily postpone the purchase of a new car until after the lockdown and the loss of sales would therefore have to be limited.
Lid at 800,000 euros
For companies that are open, but whose business has collapsed, there is fixed cost subsidy II. It can be applied for for a maximum of 9.5 months, is capped at 800,000 euros and will be paid out in two tranches by mid-2021. It can also be requested from Monday.
Now also depreciation, leasing installments, certain personnel costs for the minimum operation as well as so-called “frustrated expenses” (meaningless advance payments) are taken into account. According to the Ministry of Finance, this is especially important for travel agencies and tour operators. For small businesses with an annual turnover of up to 120,000 euros, there is the option of flat-rate payments (the grant can also be applied for without a tax advisor).
Compensation for losses up to 3 million
In addition, there is a third aid model, which has just been approved by Brussels, which is intended for larger companies and is capped at three million euros. This also runs under the term Fixed Cost Grant II, but is constructed completely differently and in truth a compensation for losses, as Blümel explained. He argued for a long time with Brussels about this model. Losses incurred by June 30, 2021 can now either be estimated in advance or announced in retrospect. This information must be confirmed by a tax advisor. Blümel hopes that this can start in December.
