Blümel: 'Turnover loss bonus' - up to 30% of turnover, capped at EUR 60,000 per month
Enabling financial planning for the duration of the pandemic – applications open for tiered assistance from 16 February
Since the beginning of the coronavirus pandemic, the Ministry of Finance has been working tirelessly on different assistance instruments aimed at countering the economic impact of the restrictions imposed by lockdown. "The new virus mutation is now keeping a vast part of the planet in suspense. Since the beginning of the pandemic, we have already been providing wide-ranging and comprehensive assistance to the economy. Through turnover compensation, we have paid out EUR 2.4 billion to around 129,000 businesses. In total, sums totalling over EUR 31 billion has been either agreed or paid out. Indeed, every business we support through the crisis will secure valuable jobs in Austria," explained Finance Minister Gernot Blümel.
Taking stock of turnover compensation
In total, EUR 2.4 billion has been paid out to approximately 129,000 businesses. Of this, over EUR 1.8 billion was paid to around 93,000 applicants as part of November's turnover compensation. On average, each business received EUR 19,000. For the November period, payments have already been made on all approved applications.
The application period for December's turnover compensation runs up to and including 20 January 2021. Here, to date we have paid out just under EUR 600 million to a total of 36,000 businesses, with an average payment of around EUR 16,000.
Key aspects of the turnover loss bonus
"Through the turnover loss bonus, we are enabling businesses to plan their finances up to the end of the pandemic. With this additional assistance, up to 30% of turnover may be claimed, capped at EUR 60,000 per month, depending on the extent to which a business is affected. We are thus giving all heavily-impacted businesses more scope and liquidity, not just those forced to close," explained Finance Minister Gernot Blümel.
Any business suffering a turnover loss of more than 40% compared with monthly turnover for the same period in 2019 can apply via FinanzOnline for cash assistance of up to EUR 60,000 per month. The rate of compensation is 30% of lost turnover, made up in equal halves of the turnover loss bonus and an advance payment on the 'fixed cost subsidy 800,000'. Since the turnover loss bonus is tied to the 'fixed cost subsidy 800,000', applications must in principle be made before the end of the year.
Applications will be open with effect from the 16th of the coming month (e.g. 16 February for January), and the first application date for the bonus is 16 February 2021. Businesses can make their own applications on a monthly basis using a simple online process.
Verification of an actual fall in turnover will be undertaken in retrospect by a tax adviser when the 'fixed cost subsidy 800,000' application is submitted.
Increase in State aid limit
Due to the length of the crisis, more and more businesses are coming up against the EU limit on State aid of EUR 800,000. As a result, Austria has repeatedly advocated an increase in this limit and, following intensive negotiations with the European Commission, an increase has been achieved. Furthermore, discussions are ongoing at European level aimed at enabling a significantly higher State aid limit to be agreed.