Support measures for businesses in the second wave of Covid-19.
Based on the information currently available (07.01), we have summarised the five different grants that are already being awarded or will soon be open for applications. Most of the information has been obtained from the InfoZoom organised by the Ida-Viru Entrepreneurship Centre, we have added information from the government decision 07.01.21 on private education.
It is now clear that there are several support measures. 2 of them have already been confirmed and are certain – the 2.133 million allocated through the Ministry of Finance, which was allocated to companies in Ida-Viru and the list of beneficiaries was formed by EMTAK code, and the support allocated by the Unemployment Insurance Fund, for which applications will open on 1 February. The support to be distributed by the EAS, the Ministry of Culture and the Ministry of Education is still being specified. It is important to note that the support from the Unemployment Insurance Fund, the Ministry of Culture and the Ministry of Education are mutually exclusive, so if a company is entitled to all of these grants, it must choose one of them.
Support 1
Based on the list of the Ministry of Finance, the support is assigned to businesses that were closed between 12.12.2020 and 03.01.2021.
€2.133 million was allocated by the Ministry of Finance to support businesses in Ida-Viru. The aim is for the support to arrive quickly, which is why there is no call for applications. The Ministry of Finance can obtain the information needed to determine the subsidy from the Tax Board and the Business Register.
Subsidies are available to businesses with employees in Ida-Viru County. It is not important where the company is registered, but the location of the employees according to the Employee Register of the Tax Board, as of 15 December 2020. Self-employed persons with an address in Ida-Virumaa or whose employees work in Ida-Virumaa can also receive the support. The subsidy was determined according to the EICP code: section I, codes 55-56 – accommodation and food service activities; section Q, codes 86905 and 86909 – human health and social work activities; section S, code 96041 – activities of saunas, solariums, massage parlours and other activities related to physical well-being (spas).
In addition to these conditions, the company’s activities must have been completely or substantially limited during the period 12.12.20 -03.01.21 due to an emergency situation, must not be in liquidation and must not be a firm in difficulty (as defined by the European Commission), and the amount of COVID-19 aid received in the past must not exceed EUR 800 000, including this aid.
The amount of the allowance is double the amount of the payroll declared on the November 2020 TSD, up to €180,000, the self-employed person will receive 2 times the minimum wage (€584) + the November 2020 TSD.
On 31.12.20, the Ministry of Finance approved the list of beneficiaries by decree. In order to receive a subsidy on a bank account, it was necessary to submit the company’s bank account number to the e-Tax office if it was not already there. If the account number is not provided, the subsidy will be transferred to the company’s advance payment account at the Tax Administration and the company will be able to transfer the subsidy from there to its own company account. If the company has a tax debt as at 01.08.20 which is still outstanding or an unpaid tax debt as at 31.12.20, the subsidy will be transferred to the advance payment account of the Tax Administration instead of to the bank account.
The Tax Administration will forward the account numbers to the Ministry of Finance on 7 January. The transfer will be made to all beneficiaries at the same time, with a possible range of receipt between 11-13 January.
If you think you have fulfilled all the requirements for receiving the grant but are not on the list of beneficiaries, please contact the Ministry of Finance, info@fin.ee.
Support 2
Unemployment benefit, which is mediated by the Unemployment Insurance Fund for companies in Ida-Viru and Harju County in connection with the COVID-19 restrictions
The total budget of this benefit is €16.1 million, including €15.3 million for employers and €814 000 for self-employed persons, including €1.75 million for Ida-Viru County.
You can start applying for the benefit via the e-tύötukassa on 01.02.2021. It can also be applied for by a company that already received a grant “on the basis of the list” via the Ministry of Finance.
The grant is available to LLCs, ASs, NGOs, FIEs, SAs, branches of foreign companies. The support is paid to the enterprise, i.e. the support goes directly to the enterprise, not to the employee as in spring.
The workers for whom support is requested may not be made redundant within 30 days after the end of the restrictions i.e. in the period 28.12.20 – 17.01.21 + 30 days (16.02.21). In the case of self-employed persons, the self-employed person may not suspend or cease his/her activities during this period.
The enterprise may not receive support from another measure designed to alleviate the restrictions for the same period.
Eligibility conditions:
1. 1. the activity of the enterprise (corresponding EMTAK code in the Business Register as at 22.12.20) is directly disrupted due to the restrictions imposed from 28.12.20 to 17.01.21.
Examples of the sectors eligible for support include accommodation, catering, food and beverage service activities, sanatoria and health activities, gambling and betting activities, arts and entertainment, sports club activities, training, amusement and recreation activities. The exact list will be published shortly.
2. The place of work of the employees/FIE must be located in Ida-Viru County or Harju County (according to the Employment Register of the Tax Administration (TÖR)).
3. The self-employed person must have filed an income tax return for the year 2019 as of 22.12.20 and the activity must not have been suspended or terminated.
The amount of the allowance is calculated on the basis of the company’s November 2020 TSD – based on the wages paid in November (wages + social tax + unemployment insurance contributions, max €180 000). The data will be obtained directly from the tax office. The allowance can only be claimed for employees working under an employment contract, LOA contracts will not be taken into account.
The allowance for self-employed persons is a lump sum of the minimum wage – €584.
Support 3
Support for damage compensation to tourism-related industries, mediated by the Ministry of Economic Affairs and Communications and EAS.
Targeted businesses:
– whose turnover has fallen the fastest and most and is not expected to recover before the easing of international travel restrictions and the introduction of the vaccine
– who are the hardest hit as of November 2020, with high fixed costs
– major employers and export promoters in the tourism sector.
Previous receipt of a grant is not a bar to applying for a grant, so those who have received a grant in the past can apply now.
The support is targeted at four target groups: accommodation establishments, travel companies, catering establishments in Tallinn’s Old Town, Estonian craft and souvenir shops.
Threshold of support:
Accommodation
Turnover decrease -50%, (April – November 2019 vs 2020)
Labour taxes – New hotels: opened later than 01.12.2019, then from opening until 30.11.2020 labour taxes averaged at least €800/month
Calculation of the subsidy and max. amount – 15% of the turnover loss in the second to third quarter, max €180 000. New hotels: 100% of labour taxes in 2020, max 180 000€
Budget – 4850000 €.
Travel companies
Decrease in turnover -70%, (April – September 2019 vs 2020)
Payment of labour taxes – 2019 labour taxes more than 7500€, November 2020 paid labour taxes more than 200€
Calculation of grant and max amount – 100% of labour taxes 2019, max 80 000 €
Budget – 1818750
Catering establishments in the Old Town
Decrease in turnover -60%, (April-November 2019 vs 2020)
Labour taxes paid – 2019 labour taxes more than 7500€, November 2020 labour taxes paid more than 200€
Calculation and max amount of grant – 100% of 2019 labour taxes, max 80 000 €
Budget – 2667500
Estonian handicraft and souvenir shops
Decrease in turnover -60%, (April – November 2019 vs 2020)
Payment of labour taxes – 2019 labour taxes more than 5000€, November 2020 paid labour taxes more than 200€
Calculation and max amount of the grant – 100% of labour taxes 2019, max 60 000 €
Budget – 363750
Grants can be applied for within 2 weeks of the opening of the call and will be distributed on a pro rata basis. Estimated to open in early February.
The total volume of the scheme is approximately € 9.7 million.
Support 4
Support mediated by the Ministry of Culture
This is not available if you are applying for Unemployment Insurance Fund support.
Support is paid to companies (including NGOs) active in the field of culture and sport. In the cultural sector, EMTAK codes are not checked, the subsidy amount is calculated on the basis of the average income for one month in 2019. The amount of the subsidy is to be approximately 1/8 – 1/12 of the income of previous periods. It is taken into account that the restrictions in Ida-Viru have been longer. More details should be available shortly.
For companies active in the field of sport, the support is mediated by Sport Training and Information SA.
Support 5
Support from the Ministry of Education and Research for businesses active in the field of private education and private leisure activities.
The support is targeted across Estonia. Ida-Virumaa and Harjumaa have higher amounts of support, as they have been subject to stricter restrictions.
According to the government’s decision, applicants cannot receive support from both the Ministry of Education and Research and the Unemployment Fund for the same period. According to the government decision, support from both measures cannot be granted at the same time.
Support can be applied for by a legal person governed by private law: an interest school, a provider of recreational activities whose main activity, according to its articles of association, is the provision of recreational activities and which has been active in this field for at least 1 year. Activities are offered to children and young people on a regular basis, at least once a week, under the supervision of qualified instructors.
- IN IDA-VIRUMA AND HARJUMAThe support forthe operators of public schools is EUR 10 per pupil in Harjumaa and EUR 20 per pupil in Ida-Viru County.The support forproviders of non-profit education is EUR 40 per participant in Harjumaa and EUR 50 per participant in Ida-Viru County to compensate for the restrictions.The support forproviders of non-profit activities is EUR 40 per participant in Harjumaa and EUR 50 per participant in Ida-Viru County to compensate for the restrictions.
- REMAINING ESTONIAProvidersof non-formal education will be subsidised up to €10 per pupil.Providers of informal education will be subsidised up to a maximum of €20 per participant to compensate for restrictions.Providers of informal activities will be subsidised up to a maximum of €20 per participant to compensate for restrictions.
Applications for support are made via the Education and Youth Board on an electronic form. In the case of recreational schools, the data of the Estonian Education Information System is used as of 10.11.2020.
The Ministry of Education and Research also informs the target groups separately about the possibilities to receive support.
