Support for Self-Employed Persons and Companies in the Coronavirus Pandemic - The Temporary Aid Programme III
The funding period of the Temporary Aid Programme II, which expires on 31 December 2020, will be continued and improved as fixed-cost aid by the Temporary Aid Programme III until the end of June 2021. Extensive financial assistance will now continue to be available for companies and self-employed persons who are severely affected by the measures to contain the coronavirus pandemic. The application for the non-repayable taxable subsidies is to be made in a simple way with the help of auditing third parties (tax advisors, certified accountants, sworn auditors or lawyers).
The Temporary Aid Programme III can be accessed by businesses, solo self-employed persons and members of the independent professions with an annual turnover in 2020 of max. 500 million EUR in compliance with the applicable aid regulations.
Independent of Nationwide Closures:
- At least 50 percent decline in turnover in two consecutive months or an average decline in turnover of 30 percent since April 2020 (compared to the same month in the previous year). Max. 200,000 fixed cost subsidy in all months in the period from January 2021 to June 2021 (as well as retroactively for December 2020, if applicable) in which there is a decline in turnover of at least 30 percent.
For Nationwide Closures:
- December 2020 to June 2021: For businesses that are directly or indirectly affected by the closures and have a monthly decline in turnover of at least 30 percent. Fixed cost subsidy of max. 500 TEUR for the respective month of closure.
- November 2020 to June 2021: For businesses that are not directly or indirectly affected by the closures (indirectly = 80 percent of the turnover with directly affected businesses) and have a monthly decline in turnover of at least 40 percent. Fixed cost subsidy of max. 200 TEUR for the respective month of closure.
Reimbursement of fixed costs is made on a percentage basis in the amount of the decline in turnover; however, fixed maximum percentage limits are applied. Eligible fixed costs include, in particular, rents and leases, financing costs, depreciation up to 50 percent, marketing and advertising costs and costs for structural hygiene measures up to 20 TEUR.
Outlook and Relevance in Practice
The Temporary Aid Programme III should be a big support for many businesses and self-employed persons to get through the coronavirus pandemic. It is not yet possible to submit an application due to the necessary technical programming and coordination with the federal states and the EU Commission. However, this should change in January. We will be pleased to support you in this process: Corona Informationscenter
Steuerberater, Certified Advisor in International Tax Law