On Saturday, March 13, the Official State Gazette (BOE) published Royal Decree-Law 5/2021 on aid to self-employed persons and SMEs to support the crisis caused by COVID-19. A Royal Decree-Law of extraordinary measures to support business solvency with which EUR 11 billion will be allocated to freelancers and SMEs in response to the pandemic.
The Council of Ministers approved aid to self-employed persons and SMEs worth EUR 7 billion to alleviate the economic difficulties faced by thousands of employed enterprises and workers in our country.
These extraordinary measures will provide direct aid of between EUR 3,000 and EUR 200,000 to all those who have suffered a decrease in turnover of at least 30% compared to 2019 due to pandemic restrictions.
It is important to note that these aids will be intended to pay invoices and to pay debts,so they are a finalist, and the aim of these aids is to reduce the indebtedness made between 1 March 2020 and 31 May 2021.
In this way, the self-employed in Modules will receive support of up to 3,000 euros,while the rest of the self-employed and SMEs will be able to access an amount of between 4,000 and 200,000 euros depending on the size of the business and the fall in revenue.
Who can access aid to freelancers and SMEs?
As published in the BOE, all self-employed people and SMEs based in Spain, who in 2020 have suffered a drop in income of at least 30% compared to 2019,will be able to access the aid.
In addition, access to the aid will have to be established an activity in one of the codes of the National Classification of Economic Activities (CNAE 09) provided for in Annex I to the standard at the time of its entry into force.
In addition, there are other requirements to access aid by Covid-19:
- It will be essential to be aware of payments with Social Security and the Tax Agency.
- Companies or professionals may not have been sentenced by judgment to the penalty of loss of the possibility of obtaining grants or public aid.
- Not having given rise to the final termination of any contract concluded with the Administration.
- Not having applied for a voluntary contest statement, nor is it declared in competition, unless it has acquired the effectiveness of a Convention.
- Not be subject to judicial intervention or have been disqualificationed under Law 22/2003 of 9 July.
- Not to have been declared insolvent in any proceeding.
On the other hand, those benefiting from these measures shall make the following commitments:
- Aid shall be intended to meet debt and payment obligations to suppliers, financial and non-financial creditors, as well as fixed costs incurred.
- Obligations must have been generated between 1 March 2020 and 31 May 2021.
- The recipients of their aid must maintain their activity at least until June 2022.
- Management salaries and dividends may not be raised.
- You will not be able to have activity in tax havens.
Types of maximum aid
Below are the criteria that mark the maximum amounts that can be accessed,which will depend on the fall in the volume of trades between 2019 and 2020. In addition, establishing the criteria for access to aid shall be the obligation of the Autonomous Communities:
- Support of EUR 3,000 to employers or self-employed persons applying the objective module estimation regime in the IRPF.
- Support of up to 40% of the fall in the volume of operations in 2020 compared to 2019,provided that it exceeds 30%, for entrepreneurs or self-employed people applying the direct estimation regime in the IRPF, as well as entities and permanent establishments with a maximum of 10 employees.
- Support of up to 20% of the amount of the fall in the volume of operations in 2020 compared to 2019,provided that it exceeds 30%, for entities and entrepreneurs or professionals and permanent establishments with more than 10 employees.
In the latter two cases, aid may not be less than EUR 4 000 or more than EUR 200 000. On the other hand, in the case of self-employed persons applying the objective module estimation regime in the IRPF, the minimum aid shall be EUR 3,000.
Main sectors benefited
The main sectors benefiting from these aids for self-employed persons and SMEs are those most affected by the coronavirus pandemic:
- Companies and freelancers in the hospitality and catering sector.
- Sectors with access to the EXTENDED ERTE in Royal Decree-Law 2/2021.
- Sectors particularly affected by the pandemic: manufacturing activities related to trade and hospitality.
- Wholesale and retail.
- Auxiliary transport sectors.
- Aeronautical maintenance.
- Activities related to culture and sports activities.
Moratoriums for automatic triggering of insolvency processes
It should also be noted that the moratoriums for the automatic triggering of insolvency proceedingsare extended until the end of the year, with the aim of giving greater scope to restore the balance of assets to those companies that are experiencing serious difficulties because of the pandemic.
Similarly, agility improvements in the insolvencyprocess are maintained, and the deferral of interest-free tax debts is extended to four months, as well as the repayment periods for public appropriations managed by the Secretary-General for Industry and the SME.
Other notable measures
- Extraordinary extension of the implementation and justification period for projects financed by the Secretary-General for Industry and smEs.
- Deferral of tax debts whose filing and income period ends between 1 and 30 April 2021, inclusive. The period shall be six months, and no interest shall accrue in late payment during the first four months of the deferment.
- Extension of the deadline for repaying public appropriations managed by the Secretary-General for Industry and the SME.
- Possibility to hold exclusively telematics meetings during the year 2021.
- The National Securities Market Commission (CNMV) will have powers to control the advertising of crypto-assets.
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