Update on COVID-19 subsidies
The following contribution provides an overview of planned and implemented changes to existing COVID-19 subsidies, as well as of new COVID-19 subsidies (last updated: 1 June 2021).
On 25 March 2021, the Austrian Investment Premium Act was amended with the announcement of the 2nd Austrian COVID-19 Tax Measures Act (2. COVID-19-StMG). The amendment of the Act allows the extension of the deadline for the initial measure, which indicates the start date of the investment, from 28 February 2021 to 31 May 2021.
A further amendment of the Investment Premium Act as well as of the corresponding guidelines took place on 28 May 2021. With the amendment, the subsidy volume was increased from EUR 3bn to EUR 7.8bn. In addition, the investment calculation periods, which indicate the end of the investments, have been extended. Applications for an investment volume of up to EUR 20m have been extended from 28 February 2022 to 28 February 2023, and application for an investment volume of more than EUR 20m have been extended from 28 February 2024 to 28 February 2025.
There will be no extension of the settlement deadline from 3 months to 6 months, but accounting which is submitted by 30 September 2021 is not subject to a settlement deadline.
The period for the subsidy payments was extended from 30 June 2024 to 31 December 2025.
You will find further information on the following site: https://www.aws.at/corona-hilfen-des-bundes/aws-investitionspraemie/
Fixed costs subsidy 800k and compensation for losses
On 28 January 2021, the European Commission gave the green light to extending the existing state aid framework. Accordingly, the current ceiling for the fixed costs subsidy 800,000 (“FCS 800k”) will be increased from EUR 800,000 to EUR 1.8m per company. Likewise, the framework for compensation for losses will be increased from the current EUR 3m to EUR 10m per company.
In addition, the “Temporary Framework” has been prolonged from 30 June 2021 to 31 December 2021.
On 16 February 2021, the amendments to the Guidelines on the FCS 800k and the compensation for losses were published in the Austrian Federal Law Gazette, including increases to the ceilings for state aid.
Revenue shortfall bonus
On 17 January 2021, the Austrian Federal Government announced the revenue shortfall bonus as a new subsidy instrument for companies that have been directly and indirectly affected by the COVID-19 crisis. All companies with a revenue shortfall greater than 40% in comparison to the equivalent monthly revenues in 2019 are eligible to apply for the revenue shortfall bonus. This means that companies can receive the revenue shortfall bonus even if they were not eligible for the lockdown revenue compensation for November and December 2020 due to the lack of direct or indirect impact. The revenue shortfall bonus amounts to 30% of the revenue shortfall, up to a maximum of EUR 60,000 per month. The amount will be divided, with 50% allocated to the revenue shortfall bonus itself, and 50% to the FCS 800k as an advance payment.
Applications must be submitted via FinanzOnline and can be submitted from the 16th of the following month (i.e. from 16 February 2021 for the month January 2021).
The guidelines on the revenue shortfall bonus were published in the Austrian Federal Law Gazette on 16 February 2021.
Further information can be found in our article on the revenue shortfall bonus.
Lockdown revenue compensation II for indirectly affected companies
The guidelines on the lockdown revenue compensation bonus II were published in the Austrian Federal Law Gazette on 16 February 2021. This is intended to support companies indirectly significantly affected by the restrictions of the most recent lockdown.
Further information can be found in our article on lockdown revenue compensation II for indirectly affected companies.
Authors: Daniela Stastny, Alexandra Velic