Direct aid to freelancers and companies

On March 13, Royal Decree-Law 5/2021 on measures to support business solvency in response to Covid-19 was published.

This R.D. establishes three types of aid:

a) Covid line of direct aid to the self-employed and companies, endowed with an amount of 7,000 million euros.

b) Line for the restructuring of Covid financial debt, endowed with a balance of 3,000 million euros.

c) Fund for the recapitalization of companies affected by Covid, endowed with a balance of 1,000 million euros.

The conditions to qualify for the aid of sections b) and c) must still be approved by the Council of Ministers, so we are going to comment on the particularities and conditions of section a)

Special features of direct aid

– Intended for companies and freelancers with tax domicile in Spanish territory.

– The endowment will be 2,000 million euros for the Balearic and Canary Islands and 5,000 million euros to be distributed among the rest of the communities.

– It will be processed through the autonomous community where the tax domicile is located, who will make the announcement of the aid, will manage the applications, will set the requirements and will monitor their compliance.

– Those entrepreneurs or professionals who have suffered a fall in the annual volume of operations, verified according to VAT, in the year 2,020 of more than 30% with respect to the 2.019.

– Only those companies and freelancers that can accredit an activity classified in any of the CNAE-09 provided for in Annex 1 attached , at the time of entry into force of the norm (13-3-21).

– Entrepreneurs who have declared a negative result due to economic activity in the I.R.P.F. or, where appropriate, a negative tax base in Corporation Tax.

– Although the CCAA may establish more restrictive criteria, the aid may not exceed the following limits:

I) € 3,000 for entrepreneurs who apply the objective estimation regime (modules)

II) 40% of the fall in the volume of operations, in the year 2,020 compared to the year 2,019, which exceeds 30% , for entrepreneurs or professionals who apply the regime of direct estimate and for entities with a maximum of 10 employees.

III) 20% of the fall in the volume of operations, in the year 2,020 compared to the year 2,019, which exceeds 30% , for entities, businessmen or professionals who have more than 10 employees.

For cases II) and III) above, the amount of the subsidy may not be less than € 4,000 nor greater than € 200,000.

Conditions of direct aid
– Not be in bankruptcy or have ceased activity at the time of application.
– Be up to date with payment of tax and Social Security obligations. < br> – They must maintain the activity, at least, until June 30, 2,022
– Do not distribute dividends during 2,021 and 2,022.
– Do not increase the salary of the management team for two years from the application of these measures .

Failure to comply with any of these conditions will cause the obligation to return the amounts obtained, as well as the expenses generated in its processing and return.

If your activity is among those listed in Annex I and you have suffered a sales drop of more than 30% can request direct help