Blümel/Köstinger: Seamless system of relief instruments to be available by tomorrow Apply for December turnover replacement and loss compensation via FinanzOnline from Wednesday on

Since the beginning of the Corona pandemic, the Ministry of Finance has been working indefatigably on various relief instruments to counter the economic impact of the lockdown-related restrictions. “Every company that we get through the crisis well secures valuable jobs in Austria. With the finalised instruments of the December turnover replacement and the loss compensation with a volume of up to € 3 million, we have created a seamless system of effective aids, both of which can be applied for from tomorrow on,” said Finance Minister Gernot Blümel.

“For the catering and hotel industry, turnover replacement and loss compensation are essential for survival,” says Tourism Minister Köstinger. “The turnover replacement is one of the fastest and most unbureaucratic aid instruments; usually the money is on the company’s account within a few days. This is an effective support for this particularly hard-hit sector, which must remain closed until 7 January. Compared to other European countries, Austria is one of the pioneers here; in Germany, for example, some of these subsidiary payments will not be disbursed before January.”

Review turnover replacement

Since 23 November 2020, it has been possible to apply for the turnover replacement for the subsequently closed businesses. The catering and hotel industry could apply as early as 6 November. So far, a total of around 99,000 applications with a total volume of almost € 2 billion have been received. Of this, € 1.5 billion have already been disbursed. On average, € 21,000 were paid out per application. The application deadline for the November 2020 turnover replacement (for the period from 3 November to 6 December 2020) is 15 December 2020.

December turnover replacement can be applied for

For the period of the extended closure in December 2020, the affected Austrian companies will receive a compensation amounting to 50% of their turnover. In order to make this turnover substitute as uncomplicated, unbureaucratic and quick as possible, it is calculated automatically on the basis of the tax data available to the tax administration. The turnover of December 2019 will be used as the basis for calculating this. The application is made via FinanzOnline. The December turnover replacement can be applied for from tomorrow, 16 December 2020, until 15 January 2021.

Loss compensation up to € 3 million.

At the same time, the loss compensation can be applied for via FinanzOnline as of Wednesday. Austria and Germany were the first countries to receive approval for grants under this new system. Losses incurred between 16 September 2020 and 30 June 2021 can either be predicted or replaced retrospectively. Large and medium-sized companies receive up to 70% of their loss, small and micro enterprises (up to 49 employees) up to 90% of their loss of the comparison period.

The application must be made through a tax advisor. Small companies can assert up to € 1,000 in losses for this purpose. The estimate of the loss is based on a forecast calculation. The final settlement will be made as soon as sufficient data are available. The period eligible for application is from 1 July 2021 to 31 December 2021. No turnover replacement may be received for the same period. A changeover from the fixed cost subsidy 800,000 is possible once in order to give companies the opportunity to choose the most favourable variant.

“We help both the companies that are closed by the authorities, and those that are struggling with large declines in turnover due to the current situation. As the crisis continues, many companies are approaching the aid cap of € 800,000. From this point of view, too, the loss compensation is an important measure that secures jobs,” said Finance Minister Gernot Blümel and Tourism Minister Elisabeth Köstinger, summing up the aids.