Coronavirus- the new “fixed cost allowance 800.000” in austria
With the ongoing COVID-19 pandemic, many industries, especially in hospitality and tourism, have been severely affected by the restrictions. In order to support these industries, the Austrian government has introduced the “Fixed Cost Grant 800.000” introduced. But what is the “fixed cost subsidy 800.000” and how will it help businesses in Austria?
The “Fixkostenzuschuss 800.000” is a one-time support that companies can receive to cover their fixed costs during the pandemic. This support is intended for companies that can no longer cover their fixed costs from their own resources and have a drop in sales of at least 30%. The “Fixkostenzuschuss 800.000” can be used by SMEs, sole proprietorships and also by certain associations and foundations.
In this article, we would like to take a closer look at the “Fixkostenzuschuss 800.000” at. We will take a closer look at who is eligible, the conditions attached to it, and how it can be applied for. We will also discuss whether the “Fixed Costs Grant 800.000” Is a bailout or whether it requires further action in Austria to overcome the long-term economic impact of COVID-19.
What is the fixed cost grant?
In view of the economic difficulties caused by the COVID-19 pandemic, the Austrian government has introduced a new “Fixkostenzuschuss 800″ program.000” introduced. This grant is intended to help businesses cover their fixed costs while they are unable to earn income due to business interruptions or sales declines.
The fixed cost grant is part of a comprehensive package of measures to support businesses and self-employed people during the crisis. The Austrian federal government has already established a “hardship fund” program to assist small businesses and the self-employed who have been particularly hard hit by the crisis.
The fixed cost grant is a non-repayable grant. Companies can apply for a grant of up to 75% of their fixed costs, but not more than EUR 800.000. This will be for a three-month period, from April to June 2020.
The Austrian government is also planning other measures to help businesses, including a series of tax breaks and loans. These measures should help minimize the economic impact of the pandemic on the Austrian economy and help businesses recover quickly and grow again.
Who is eligible to receive the fixed costs subsidy 800.000 to apply for?
The fixed cost subsidy 800.000 is a grant intended to help companies and self-employed persons affected by the coronavirus pandemic. This grant can be applied for by companies and self-employed individuals in Austria who experience a decline in sales of at least 40 percent compared to the same period in the previous year.
This subsidy is intended for companies and self-employed persons who can no longer fully cover their fixed costs and are therefore in financial difficulties. Fixed costs include rents, leases, leasing payments, insurance and similar costs.
The fixed cost allowance 800.000 can also be used to cover personnel costs, especially for freelancers and marginal employees, as long as these costs are not covered by short-time work or the like.
- Companies and self-employed persons in Austria
- A drop in sales of at least 40 percent compared with the same period of the previous year
- Non-coverable fixed costs
- Personnel costs that are not covered by reduced working hours or the like
However, there are also some conditions that must be met in order to receive the fixed cost grant 800.000 to be able to apply. These include, for example, complying with European Union grant limits and providing an affidavit that the information in the application is truthful.
How much is the fixed cost subsidy??
The new “fixed cost grant 800.000” has been created by the government to support companies affected by the impact of the coronavirus. The amount of the subsidy depends on several factors, including the amount of the company’s fixed costs and the drop in sales during the crisis. An exact amount can therefore not be given as a general rule, since each case is examined individually.
However, there are some rough guidelines for calculating the grant. Companies with a decrease in sales of at least 40% compared to the previous year and a monthly fixed cost of at least 2.000 can apply for a grant of up to 75% of their fixed costs. The maximum subsidy is 800.000 euros.
In addition, there is also a staggered subsidy for companies that do not meet the above criteria but are nevertheless affected by the crisis. Again, the exact amount of the grant depends on various factors.
Overall, the new fixed cost subsidy is intended to help support companies in times of crisis and safeguard jobs. For many companies, funding can make a critical difference and help them weather acute financial hardship.
Application for the fixed cost subsidy 800.000
The new fixed cost allowance 800.000 was introduced as part of Corona Bridging Grant III to help companies with high fixed costs. The application is submitted via an online application available on the bridging assistance website. There, entrepreneurs must declare their sales and fixed costs during the grant period.
To simplify the application, a tax advisor can be consulted. These can submit the application in a simplified procedure. It is also possible to submit the application via an auditing third party, such as an auditor.
To qualify for the grant, companies must demonstrate that they have been affected by at least a 30 percent drop in revenue compared to the same period last year. This can be evidenced by submitting advance sales tax returns or an annual tax return.
Once the application has been submitted, a preliminary review is carried out. If all requirements are met, the grant is paid out. For companies submitting applications by 31. August 2021, a grant of up to 100 percent of their eligible fixed costs is possible, with a maximum of 800.000 euros.