Corona aid: From A for default bonus to V for loss compensation

Corona aid: From A for default bonus to V for loss compensation

SLT Steuerberatung has put together a current overview of current Corona emergency and bridging aid - current Corona measures that will hopefully help you and your company in these difficult economic times. 

René Lipkovich and Rudolf Siart, auditors and tax consultants at SLT Siart Lipkovich + Team in Vienna, have dealt intensively with the topic and offer their advice website including our own Corona calculators to select the most suitable variants in individual cases. 

Companies that suffered a loss of sales of at least 30% in the calendar months of November 2021 and December 2021 or of at least 40% from January to March 2022 can apply for the loss bonus III of up to a maximum of 80,000 euros per calendar month.

The current default bonus III can be applied for via Finanz-Online from the 10th of the next month.  You can currently apply for the default bonus III for November 2021 (since December 10, 2021) or for December 2021 (since January 10, 2022).

November and December 2021 and March 2022 are compared with the months from 2019. January and February 2022 are compared with the months in 2020.

For companies with a loss of sales of at least 30% in the period from September 16, 2020 to June 30, 2021, the fixed cost subsidy of 800,000 can be applied for. The amount of the subsidy corresponds to the percentage loss of sales during this period. 

à 60% loss of sales = 60% fixed cost subsidy

All donations that have already been paid out to the company or that have been bindingly promised must be counted towards the FKZ 800,000. The maximum amount of the FKZ 800,000 was increased from EUR 800,000 to a maximum of EUR 1.80 million per company.

The FKZ 800,000, for the calculation of which up to 10 observation periods can be selected, which are related in time or 2 connected blocks each, can be up toMarch 31, 2022be applied for.

Loss compensation I and II serve to cover uncovered fixed costs and can be applied for cumulatively. The basic requirement for loss compensation I is a loss of sales between September 16, 2020 and June 30, 2021 of at least 30%. Applications can be made up toMarch 31, 2022be introduced.

For loss compensation II, a loss of sales of at least 50% in the period July 1st. – December 31, 2021 provided. Applications for loss compensation II can be made up to and includingJune 30, 2022be introduced.

The comparison period is the months of 2019.

If the FKZ 800,000 has been used, a simultaneous granting of compensation for losses is excluded, although a one-time change between fixed cost grant 800,000 and compensation for losses is permitted.

Under certain circumstances, applications for FKZ 800,000 and loss compensation must be submitted by a tax advisor, auditor or accountant.

The hardship fund phase 4 can be applied for by self-employed people affected by the pandemic between December 1st, 2021 and May 2nd, 2022.

Self-employed people are eligible to apply whose sales were 30% lower in November and December 2021 or 40% lower from January to March 2022 than in the comparable period of 2019 or for January and February in 2020.

The COVID-19 short-time work phase 5 currently applies for the period July 1, 2021 - June 30, 2022 and is granted for a maximum of 6 months, although a new short-time work application can be submitted if you wish to continue.

The special regulation for particularly affected companies to receive 100% aid has been extended until March 31, 2022. This applies to companies that were subject to sales tax in 2019 and 2020 and had a decline in sales of 50% or more in the 3rd quarter of 2020 compared to the 3rd quarter of 2019 or were affected by an entry ban imposed after July 1, 2021.

Since July 1, 2021, the tax administration has had a two-phase installment payment model to pay the Covid-19-related tax arrears. This applies to tax debts that are predominantly (more than 50%) related to Covid-19.

The deferred taxes can be repaid in installments over two phases.

Phase 1 (July 1, 2021 to September 30, 2022) covers 15 months and Phase 2 (October 1, 2022 to June 30, 2024) covers 21 months. In total, both phases span 36 months.

 Applications for phase 2 are possible until August 31, 2022 (phase 1 was possible until June 30, 2021). The interest is 2% above the applicable base interest rate per year.

In addition, the tax authorities offer a so-called “safety car phase” for the first 3 months, in which the amount of the installments is significantly reduced again.

For traders, freelancers and newly self-employed people, a reduction in the provisional contribution basis according to the GSVG/FSVG for the current year is possible. You can apply to have contributions adjusted to your expected income on the SVS website.

The degressive depreciation rate (meaning that the depreciation rate, in the financial year in which the depreciation is to be taken into account for the first time, can be freely chosen within a maximum of 30%) allows a depreciation of 30% of the acquisition and production costs at the beginning. This corona-related investment support will now be extended and can be used for commissioning until December 31, 2022.