Turnover Compensation For Impacted Companies
The Austrian Ministry of Finance has issued another instrument to offset negative consequences of the second lockdown for the economy. Impacted businesses will be compensated for 80 percent of their turnover with an allegedly unbureaucratic and fast process that should help companies as uncomplicated as possible.
Minister for Finance Blümel has introduced the turnover compensation for companies particularly impacted by the lockdown. / Picture: © BMF - Federal Ministry of Finance - Bundesministerium für Finanzen / Andy Wenzel / Flickr Attribution 2.0 Generic (CC BY 2.0)
The dramatically increasing number of Covid-19 infections in Austria and many European countries has resulted in necessary restrictions in public life.
This has consequences for the domestic economy.
The Ministry of Finance Gernot Blümel has issued a new instrument to replace a large part of the turnover of companies that were closed down by government order or are particularly restricted by it.
"We are not only dealing with a health crisis but also with an economic crisis. As an export and tourism nation, the current situation naturally has a strong impact on economic development in Austria. The drastic effects are a serious threat for many companies. We must and will help these companies as quickly as possible," said the Finance Minister.
For the period of the ordered lock-down, the Austrian companies concerned will be compensated for 80% of their turnover.
In order to make this compensation of turnover as uncomplicated, unbureaucratic and fast as possible, it is automatically calculated on the basis of the tax data available to the tax authorities.
The application is made via FinanzOnline. Companies can apply for the turnover compensation from now until 15 December.
The aid will be transferred within 14 days. The maximum amount paid out per company is capped at EUR 800,000 in accordance with the approval of the EU Commission, whereby certain Covid-19 aid must be offset.
The fixed cost subsidy 1 does not have to be offset. Short-time work is not deducted.
Furthermore, it is clear that new sales resulting from the switch to delivery at restaurants and sales from business trips at hotels do not have to be taken into account.
Requirements for the application are:
- a registered office;
- a permanent establishment or operational activity in Austria;
- no bankruptcy proceedings and
- a job guarantee for November 2020.
For companies that are not directly affected by the measures, but which have nevertheless suffered significant losses in sales due to the Covid-19 crisis, the fixed cost subsidy is an effective economic aid.
Still in November, a fixed cost subsidy of up to EUR 800,000, less the aid already received, will be available.
This will take account of depreciation and frustrated expenses (e.g. at travel agencies).
A combination of sales compensation (for November) and fixed cost subsidy (for months other than November) is also possible for affected companies for different periods.
Negotiations with the European Commission on the fixed cost subsidy 2, with a total subsidy of EUR 3 million, will continue in parallel.
"Every company that we get through the crisis well secures valuable jobs in Austria. In contrast to Germany, we will not only compensate companies with up to 50 employees, but all Austrian companies that have been particularly hard hit by the closure or its consequences will receive 80% of their net sales up to EUR 800,000. At the same time, the fixed cost subsidy will be expanded in order to provide even more comprehensive help", Finance Minister Gernot Blümel sums up the aid.
For more information please refer to the FAQ page of the Ministry for Finance (only available in German) or to corona.hotline@bmf.gv.at and +43 050 233 770.