What changes into a refundable deposit and fixed costs

By Prokopis Chatzinikolaou

The big problems that continue to plague businesses and the self-employed, as well as households, have led the government to take a series of measures to stop them, without ruling out the possibility that the aid measures will continue in 2022. The wave of energy price increases affects costs production and spread over a wide range of goods and services brought a new package for electricity and gas. At the same time, it was decided in the middle of the Omicron mutation to extend the start of the repayable advance by six months, as well as the fixed expenses program. This move relieves the market at this stage and possibly a few months before the elections the government may turn the repayable advance into a subsidy.

That is, the total amount of money received by companies and freelancers, which amounts to 8.3 billion euros, should not be returned. So far, the government has made a significant “haircut” of the amount, with the return to be estimated at about 3 billion euros. This amount will be refunded in 60 installments, with the first to be paid at the end of June and the last in mid-2027. However, those who wish to pay a lump sum can do so until the end of March, earning an additional discount of 15%.

The amount of the government loan that companies and professionals are required to repay is “cut” up to 75% and will appear on any other debts of the company, on the AADE website in the option “myAADE / my account / Personalized information / Details Debts outside Settlement and Payment “.

What should those who received the state loan know?

1. The amount of aid shall not be charged at interest rates. After the expiration of the grace period, the repayable amount of the received aid is payable in sixty equal interest-free monthly installments, each of which is payable on the last working day of the month. The date of payment of the first installment is the last working day of the month following the end of the grace period.

2. The total amount of the aid is displayed with any other debts of the company, on the website of AADE in the option “myAADE / my account / Personalized information / Debt Details out of Settlement and Payment”.

3. It is possible to pay a lump sum of the repayable amount of the received aid, until March 31 with a 15% discount on the repayable amount of the received aid. The amount is paid within the above deadline and the discount is valid until this deadline. Those who choose 60 installments will have to pay the first installment at the end of June 2022

What businesses will return

Businesses that have a turnover drop of more than 70% and record losses before taxes will have to repay 25% of the government loan. However, if they pay in a lump sum, they will repay 21.25% of the loan.

– Companies with a drop in turnover of 30% to 70% and have a drop in gross income in 2020 to 2019, will repay 33% of the government loan.

– All other companies for all seven cycles will repay 50% of the government loan

Fixed costs

The government also decided to extend the fixed expenditure program for six months. It is estimated that about 100 million euros have not been offset and taxes and contributions and in order not to lose the amount provides the opportunity to 31,000 companies to do so by the end of June. At the same time it is extremely possible to provide the opportunity to change the composition of amounts leading to taxes and insurance contributions.

Extension for amendments

Accountants and tax experts are asking the government for an extension of two months for the submission of handwritten and electronic amendment declarations concerning retroactive pensioners’ salaries and agricultural compensations after the problems observed with the certificates of earnings. At the same time, the commercial and business world is asking for a three-month extension to the repayment period of the pandemic’s debts in 36-72 installments, while the request for an extension of the deadline for payment of traffic fees is always on the table.

According to information, the financial staff is seriously considering the requests and does not rule out extensions in cases where it is found that there is a problem. It is also possible to write off the fine of 100 euros for amending tax returns retroactively from pensions submitted late but through the fault of the issuing body of the relevant certificates.