More than 2 months after the publication of RDL 5/2021, last May 29th was finally published the joint Order of the consellera d'Hisenda i Relacions Exteriors of the conceller de Model Econòmic, Turisme i Treball by which the regulatory bases are approved and the extraordinary call of the Covid Line of direct aid to entrepreneurs and professionals. Subsidies to help pay off debts incurred during the pandemic have arrived
We will try to give as practical a summary as possible of this order, but please note that
the application period starts on 14 June at 8.00 am and ends on 28 June at 3.00 pm.
Only 14 days for thousands of freelancers, professionals, companies and organisations to submit their applications, which can be made exclusively online on the ATIB website.
Confialia offers its professional services to manage the application for this aid, although it is up to each self-employed person, professional, businessman or entity interested in applying for this aid to inform us if they wish us to manage this matter for them.
We have established a fee schedule adapted to the economic circumstances we are all experiencing and to the workload, both in terms of processing and subsequent justification. If you would like us to help you, do not hesitate to ask us for information.
How are these grants structured and what can they be used for, with subsequent justification in mind?
There is a total of more than €855 million, distributed in two lines of support:
- Line 1: With €200 million for entrepreneurs or professionals who are taxed under the objective estimation regime (modules), including those who have been registered between 1 January 2019 and 31 March 2020 and those who have been registered for a period of less than one year for the financial years 2019 and 2020. For those who opt for this line, there is no need to demonstrate the drop in turnover and they will be processed in order of entry.
- Line 2: With more than €655 million for other entrepreneurs, professionals, companies or entities.
It is not possible to benefit from both lines and if in 2019 or 2020 you were taxed under modules, even if in 2021 you have renounced this regime, the aid line will remain line 1.
These grants can only be used to pay, inter alia, debts arising from the provision of services or supplies, taxes (except for indirect taxes that can be recovered or offset and personal income taxes), salaries, rents, reduction of financial debt, including debts owed to a partner or administrator and, in general, any other debt owed to a creditor.
This aid cannot be used to pay debts between companies that form part of the same group, and in any case, suppliers will be paid first, in order of seniority, and if possible, bank debt will be reduced by giving priority to those with a public guarantee.
What requirements must be met by those who wish to apply for these grants?
- Line 1
- Taxable by modules, including those who have been registered between 1 January 2019 and 31 March 2020 and those who have been registered for a period of less than one year for the financial years 2019 and 2020.
- Line 2
- All other entrepreneurs, professionals, companies or entities provided that they can prove through their tax returns (VAT or equivalent) that in 2020 their volume of operations has fallen. more than 30%. with respect to 2019, including:
- Those subject to the equivalence surcharge
- Non-residents with permanent establishment
- Those who were registered between 1 January 2019 and 31 March 2020 and do not need to comply with the 30% drop in turnover. (those after this date cannot apply for the aid).
- Companies, not belonging to a group, that have changed their legal form between 1 January 2019 and 31 December 2020 and do not need to comply with the 30% drop in turnover requirement.
- Companies, not belonging to a group, with activity prior to 1 January 2019 and which have changed their legal form between 1 January 2019 and 31 December 2020, in this case, complying with the 30% drop in turnover.
- Entrepreneurs, professionals, entities and consolidated groups with negative results in 2019 as a result of the bankruptcy of Thomas Cook or because they have made investments in 2019 without which they would not have had such results. In the latter case an audit report will be required at the time of justifying the payment of the eligible expenses.
- Entrepreneurs, professionals and companies that have had to be closed for a period of less than one year for the financial years 2019 or 2020.
- All other entrepreneurs, professionals, companies or entities provided that they can prove through their tax returns (VAT or equivalent) that in 2020 their volume of operations has fallen. more than 30%. with respect to 2019, including:
What are the specific requirements to be met?
In General:
- Be able to prove that during 2019 and 2020 at least one of the activities provided for in the list of CNAE published in this Order has been carried out.
- Continue, at the time of submission of the application, to carry on the activity.
- Not to have been sentenced by final judgement to the loss of the possibility of obtaining public subsidies or aid.
- Not having been found guilty in connection with the termination of any contract with the public administration.
- Be up to date with payments for the repayment of subsidies or public aid.
- Be up to date with tax obligations with the AEAT, Autonomous Community and Social Security.
- Not having applied for voluntary insolvency proceedings.
- Not having tax residence in a country qualified as a tax haven.
- Be domiciled for tax purposes in the Balearic Islands, with the exception of those with a turnover of more than 10 million euros.
- Not having coverage of any kind for the eligible concepts.
- Not to be under any of the prohibitions established in art. 3 of Law 38/2003 on subsidies.
Specifically:
- For Line 2 beneficiaries, having declared a positive result in 2019.
What are my obligations as a beneficiary of this aid?
- Those established in Article 14 of Law 38/2003 on general subsidies
- Maintain the activity until 30 June 2022.
- No dividends in 2021 and 2022
- Do not approve increases in senior management remuneration for two years.
- Keep the bank account indicated in the application active until the end of the first quarter of 2023.
What do I need to consider with regard to the application?
- They will be processed through the Tax Agency of the Balearic Islands (www.ajustscovid.atib.es ) Platform that is not yet active and depends first on the signing of the corresponding collaboration agreement between the Consellería and the Agency. They have a term of 10 days to sign this agreement.
- You will need an electronic ID, digital certificate or Cl@ve.
- That I will start receiving electronic notifications.
- That unless I state otherwise, I authorise the Administration of the Autonomous Community to consult my details in the different official registers. Failure to do so would mean having to provide the corresponding certificates.
- I will have to testify:
- The total amount of debts for which aid is requested
- That I meet the prerequisites required by the order
- That I will comply with the obligations required by the order
- The amount received from other aid for the same concepts
- Which helpline do I opt for?
- Aid applied for in other territories than the tax domicile
- If I only carry out transactions that are not subject to or exempt from VAT.
- If in 2019 or 2020 I have been part of a consolidated group
- If applicable, and if I am part of a consolidated group, the list of companies that make it up.
- The amount of the negative result for the financial year 2019 and 2020.
- Information on the deductible expense, in the case of having been affected by Tomas Cook's bankruptcy, or on the tax-deductible depreciation of fixed assets made in 2928 and 2019.
What are the times?
- The deadline for submission is 14 June at 8.00 am and ends on 28 June at 3.00 pm.
- There will be a period of 10 days to rectify errors or provide the necessary documentation (art. 23.5 of Law 38/2003).
- Eligible debts must be paid between the time of application for aid and a maximum of two months after receiving the aid. IMPORTANT: With this criterion (art. 9.3 of this order) debts already paid are excluded from this aid.
- 31 March 2022 will be the deadline for the justification of the grant:
- For amounts equal to or less than €6,000.00, a sworn declaration will be sufficient, although there may be subsequent verifications by the Administration.
- For amounts between €6,000.00 and €60,000.00:
- Classified statement of expenditure paid
- Letter of refund payment in the case of unexpended balances, including interest (3.75%)
- For amounts over €60,000.00, audit report.
What will the aid amounts be?
The total amount of the eligible expenses stated in the application, according to the requirements of the order, with the following limits:
- For the beneficiaries of line 1, maximum € 3.000,00
- For beneficiaries of line 2, a minimum of 4.000,0 € and a maximum of 500.000,00 €, according to the following criteria and taking into account that a 30% drop in turnover entitles to claim the subsidy but the subsidy is calculated according to the percentage drop exceeding 30%.
- With a maximum of 10 employees, 100% of the drop in trading volume in 2020 compared to 2019 and exceeding 30%.
- With more than 10 employees, 50% of the 2020 volume drop compared to 2019 and exceeding 30%.
- For those who have not fallen 30%, maximum €4,000.00 provided they meet one of the following conditions:
- Start the activity between 1 January 2019 and 31 March 2020.
- Who have carried out the activity for a period of less than one year between 2019 and 2020.
- In compliance with the first paragraph, they have changed their legal form during the same period.
- If the percentage that falls above 30% does not reach €4,000.00, you will still be entitled to them.
What is the complete list of CNAE eligible for this aid according to RD 5/2021?
0710 Mining of iron ores.
1052 Ice cream production.
1083 Processing of coffee, tea and infusions.
1101 Distilling, rectifying and blending of alcoholic beverages.
1103 Manufacture of cider and other fruit fermented beverages.
1413 Manufacture of other outer garments.
1419 Manufacture of other wearing apparel and accessories.
1420 Manufacture of articles of fur.
1439 Manufacture of other knitted or crocheted garments.
1811 Graphic arts and related services.
1812 Other printing and printing activities.
1813 Pre-press and media preparation services.
1814 Bookbinding and related services.
1820 Reproduction of recorded media.
2051 Manufacture of explosives. 2441 Production of precious metals.
2670 Manufacture of optical instruments and photographic equipment.
2731 Manufacture of optical fibre cables.
3212 Manufacture of jewellery and related articles.
3213 Manufacture of imitation jewellery and similar articles.
3316 Aeronautical and space repair and maintenance.
3530 Steam and air conditioning supply.
4616 Agents involved in the sale of textiles, clothing, fur, footwear and leather goods.
4617 Agents involved in the sale of food, beverages and tobacco.
4624 Wholesale of hides, skins and leather.
4634 Wholesale trade of beverages.
4636 Wholesale of sugar, chocolate and confectionery.
4637 Wholesale of coffee, tea, cocoa and spices.
4638 Wholesale of fish, seafood and other food products.
4639 Non-specialised wholesale trade, not specialised, of food, beverages and tobacco.
4644 Wholesale trade of china, glassware and cleaning supplies.
4648 Wholesale of watches and jewellery.
4719 Other retail trade in non-specialised shops.
4724 Retail sale of bread and bakery wares in specialised shops.
4725 Retail sale of beverages in specialised shops.
4741 Retail sale of computers, peripheral equipment and software in specialised shops.
4751 Retail sale of textiles in specialised shops.
4762 Retail sale of newspapers and stationery in specialised shops.
4771 Retail sale of clothing in specialised shops.
4772 Retail sale of footwear and leather goods in specialised shops.
4777 Retail sale of watches and jewellery in specialised shops.
4782 Retail sale of textiles, clothing and footwear at stalls and flea markets.
4789 Retail sale of other goods at stalls and markets.
4799 Other retail trade not carried out in shops, stalls or markets.
4931 Urban and suburban passenger land transport.
4932 Taxi transport.
4939 Types of passenger land transport n.e.c.
5010 Maritime transport of passengers.
5030 Passenger transport by inland waterways.
5110 Passenger air transport.
5221 Activities allied to land transport.
5222 Supporting activities for maritime and inland waterway transport.
5223 Activities incidental to air transport.
5510 Hotels and similar accommodation.
5520 Tourist and other short-stay accommodation.
5530 Camping sites and caravan parks.
5590 Other accommodation.
5610 Restaurants and food stalls.
5621 Provision of prepared food for events.
5629 Other food services.
5630 Drinking establishments.
5813 Newspaper publishing.
5914 Motion picture exhibition activities.
7420 Photographic activities.
7711 Renting of automobiles and light motor vehicles.
7712 Truck rental.
7721 Renting of leisure and sporting goods.
7722 Video cassette and disc rental.
7729 Renting of other personal effects and household goods.
7733 Renting of office machinery and equipment, including computers.
7734 Rental of means of navigation.
7735 Rental of air transport equipment.
7739 Renting of other machinery, equipment and tangible goods n.e.c.
7911 Travel agency activities.
7912 Activities of tour operators.
7990 Other reservation services and related activities.
8219 Photocopying, document preparation and other specialised office activities.
8230 Organisation of conventions and trade fairs.
8299 Other business support activities.
9001 Performing arts.
9002 Activities auxiliary to the performing arts.
9004 Venue management.
9102 Museum activities.
9103 Management of historic sites and buildings.
9104 Activities of botanical gardens, zoological gardens and nature reserves.
9200 Gambling and betting activities.
9311 Management of sports facilities.
9313 Activities of fitness centres.
9319 Other sporting activities.
9321 Activities of amusement parks and theme parks.
9329 Other recreational and entertainment activities.
9523 Repair of footwear and leather goods.
9525 Repair of watches and jewellery.
9601 Washing and cleaning of textile and fur garments.
9604 Physical fitness activities.
How is the list of CNAE eligible for this aid extended in the Balearic Islands?
1011 Meat processing and preservation.
1013 Processing of meat and poultry products.
1043 Manufacture of olive oil.
1053 Manufacture of cheese.
1054 Preparation of milk and other milk products
1102 Winemaking.
1104 Manufacture of other non-distilled beverages.
1105 Manufacture of beer.
1107 Manufacture of soft drinks.
1512 Manufacture of leather goods, travel goods.
1520 Manufacture of footwear.
1622 Manufacture of coupled wood flooring.
1623 Manufacture of other structural timber, joinery and carpentry for construction.
1629 Manufacture of other products of wood; manufacture of articles of rubber, straw and plaiting materials; basketware, wickerwork and wickerwork.
2041 Manufacture of soaps, detergents and other cleaning and polishing preparations.
2042 Manufacture of perfumes and cosmetics.
2059 Manufacture of other chemical products n.e.c.
2219 Manufacture of other rubber products
2222 Manufacture of plastic containers and packaging
2229 Manufacture of other plastic products
2561 Treatment and coating of metals
2594 Manufacture of bolt products
3101 Manufacture of office furniture.
3102 Manufacture of kitchen furniture.
3109 Manufacture of other furniture.
4631 Wholesale of fruit and vegetables.
4632 Wholesale trade of meat and meat products.
4633 Wholesale of dairy products, eggs, oils and edible fats.
4635 Wholesale trade of tobacco products.
4645 Wholesale trade of perfumery and cosmetics.
4675 Wholesale trade of chemicals.
4752 Retail sale of hardware, paint and glass. (souvenirs)
4761 Retail sale of books in specialised shops
5811 Book publishing.
6010 Broadcasting activities
6201 Computer programming activities.
6202 Computer consultancy activities.
6203 Management of IT resources.
6209 Other information technology and computer-related services.
6311 Data processing, hosting and related activities.
6312 Web portals.
6391 Activities of news agencies.
6399 Other information services n.e.c.
7312 Media representation services
8510 Primary education (schools)
8551 Sports and recreational education
8552 Cultural education 8553 Activity of driving schools and driving schools
8559 Other education n.e.c. Academies, training centres and private non-formal education centres.