The Austrian government adapted the default bonus, the loss compensation and the hardship fund. The main aspects are briefly summarized below:
- Default bonus II (“Ausfallbonus II“)
- Adapted requirements
The prerequisites for the claim of phase II are basically the same as for phase I, although some points have been adapted:
- To qualify for the default bonus a loss of 50% of sales in the observation period (calendar month) in relation to the comparison period is required.
- The replacement rate depends on the industry and is derived from the company’s ÖNACE code, under which the majority of sales are achieved and varies from 10% – 40%.
Individual replacement rate multiplied by the loss of sales per observation period results in the default bonus II. In contrast to phase I, there is no longer the possibility to request an advance payment on the fixed cost subsidy.
In addition, the following exclusion criteria were included:
- Withdrawals by the owner of the company or profit distributions from July 1, 2021 to December 31, 2021 must be adjusted to the economic circumstances. In particular, the granting of a default bonus II is not possible if it comes to distribution of dividends or other legally non-mandatory profit distributions and the repurchase of own shares.
- A default bonus II may not be granted if inappropriate remuneration or other benefits are granted to the owner of the company and its organs (in particular bonus payments to board members and managing directors between July 27, 2021 and December 31, 2021, provided that these are 50% higher than in financial year 2019).
- Cap
The bonus is capped at EUR 80,000 per observation period (minimum payment is EUR 100). In addition, a cap was introduced depending on claimed short-time work. The sum of default bonus II and short-time working allowances for the observation period must not exceed the comparable sales for the period. - Observation periods and application
The possible application period is extended by 3 months (July, August and September 2021). The application for the bonus must be submitted from the 16th of the following month (for the observation period July 2021 therefore from August 16, 2021). Instead of the previous three months, the applicant now has four months (ie for July 2021 to November 15, 2021) to submit the application.
- Loss compensation II (“Verlustersatz II”)
- Adapted requirements
The requirements for the extended loss compensation II are basically the same as for initial loss compensation. The prerequisite for the loss compensation is now a loss of sales of 50% (previously 30%) in the period under review (calendar month) related to the comparison period.
- Observation periods and application
The application period is extended by 6 months (July to December 2021):
– Observation period 1: July 2021
– Observation period 2: August 2021
– Observation period 3: September 2021
– Observation period 4: October 2021
– Observation period 5: November 2021
– Observation period 6: December 2021
Applications can be submitted for a maximum of six observation periods. The observation periods are to be selected in such a way that all observation periods are timely related.
The payment of the loss compensation can be requested in two tranches via FinanzOnline:
- Tranche 1:
- From August 16, 2021, but no later than December 31, 2021 for a maximum of 70% of the expected loss compensation
- The amount of the loss and the loss of sales should be estimated as best as possible.
- Tranche 2:
- from January 1, 2022, but no later than June 30, 2022, for the entire unpaid loss compensation
- The suffered loss and loss of sales must be confirmed by a tax advisor, auditor or accountant by means of an expert opinion (final account) (necessary corrections to tranche 1 must be taken into account in tranche 2).
If the company expects a total loss compensation in the course of tranche 1 (taking also tranche 2 into account) no more than EUR 36,000, expenses of a maximum of EUR 1,000 that arise from the consultation of a tax consultant, auditor or accountant can be taken into account in tranche 2 to increase the loss.
- Hardship fund phase 3
The hardship fund for EPU and micro enterprises is extended by 3 months from July to September 2021. This means that the hardship fund can now be applied for a maximum of 18 months (between mid-March 2020 and the end of September 2021). Either a loss of 50% in sales must be proven or proof must be provided that ongoing costs cannot be covered. Applications for funding can be made from August 2 to October 31, 2021.
- Outlook
In connection with the extension of the discussed COVID-19 support measures the further development is to be kept in mind, especially the FAQs for the default bonus II and the loss compensation II are not available by now but should be published soon.
Authors:
Christoph Puchner, Managing Director and Tax Advisor
& Katharina Geweßler, Tax Advisor from ECOVIS Austria
