Results of aid for the self-employed and businesses

Jul 13, 2021 | Current affairs, Featured, Tradition

12,000 self-employed workers and companies have applied for recovery aid valued at 855 million euros.

The result in figures indicates that 2776 applications have been received for line 1 corresponding to the estimation by modules, mostly self-employed and 9163 for line 2 corresponding to the direct estimation, mostly from companies.

By islands, the applications are distributed as follows:
Mallorca;Total 8994; Line 1 with 2182 and in Line 2 with 6812.
Menorca; Total l983; Line 1 with 160 and in Line 2 with 823
Ibiza; Total 1735; Line 1 with 371 and on Line 2 with 1364
Fornentera; Total 201; Line 1 with 63 and on Line 2 with 138

Yesterday was the deadline for the presentation of aid to cope with the losses caused by Covid-19, to benefit from state funds of 855 million euros. The number of CNAE that could access them was extended, leaving almost all CNAE accessible to them, with the exception of the sector of financial institutions and insurance, and for household activities.
The first payments are expected to start at the end of July.

The aid is designed to enable businesses and the self-employed to improve their viability and reduce debts caused by COVID-19.
The design of the call for applications provides for covering costs that have led to a drop of more than 30% in the volume of operations compared to 2019, in two lines:

  • Line 1. Companies or professionals that apply the objective estimation regime on the income of natural persons (estimation by modules). Up to €3,000.
  • Line 2. Entrepreneurs or professionals who apply the direct assessment system for personal income and entrepreneurs who apply corporate income tax (from €4,000 to €500,000).
    The requirements and obligations of this complex procedure were passed because they are included in more than 140 CNAE.
    More specifically, the beneficiaries of line 2 will have to prove that their turnover has fallen by more than 30% compared to 2019 (with the exception of companies newly created between 1 January 2019 and 31 March 2020) and that their taxable income in 2019 was positive (with the exception of companies affected by the bankruptcy of Thomas Cook and those that have invested heavily in 2019).
    In addition, the beneficiary companies and professionals will be obliged to maintain the activity corresponding to the aid until 30 June 2022, will not be able to make a profit distribution between 2021 and 2022, nor will they be able to apply increases in the remuneration of senior management personnel in two years.