What business support measures are in place during this quarantine in Lithuania?

After the announcement of the second quarantine, when the business was faced not only with difficulties, but also with a lack of information about possible measures of assistance, here is a brief overview of the measures currently in force.

Business support – existing measures

Businesses can continue to apply to the National Investment and Business Guarantee Development Agency (INVEGA) or financial intermediaries cooperating with INVEGA for government assistance.

One of the measures in force is the collective credit line “Avietė” for small and medium-sized enterprises. This is valid due to the situation with COVID-19 until June 30, 2021. In addition, it is allowed to provide loans from Avietė funds, which can be financed up to 100% from Avietė funds, but no more than 25 thousand euros within 6 months. During the period, you can apply for no more than 2 loans and the maximum loan term is up to 12 months.

Discounts on loan interest are still available. Companies can apply for both 100% compensation for deferred payments on existing loans or leases for up to 6 months during an emergency, and up to 95% interest compensation on long-term business development loans for up to 36 months.

INVEGA also draws attention to the 2 loan portfolio guarantee mechanism for loans from financial institutions or for restructuring existing loans; use loans for accommodation and catering service providers and loans for tour operators.

Another 50 million euros will be allocated to agricultural and fish companies affected by the coronavirus.

We also remind you that ordinary financial instruments can be used eg. soft loans, loans from the stimulating financial instrument “Alternative”, guarantees, venture investments.

When allocating support for business, the Ministry of Economy and Innovation, together with the Ministry of Social Protection and Labor, will compile a list of measures for which companies most affected by the COVID-19 pandemic can benefit from according to these updated support measures. eligible criteria:

1) The company’s turnover fell by 30% within 6 months. and more compared to the same period last year;

2) Companies that are in the sectors who have experienced a turnover decrease of at least 40%

This data must be provided to VMI for listing.

Work relationship

Downtime subsidies are still provided: 90% of the employee’s accrued salary, but not more than 607 euros on paper; 100% of the employee’s salary if the employee is over 60 years old, but not more than 607 euros. 70% of the employee’s salary, but not more than 910.5 Eur.

After the announcement of a new (local) quarantine in the area of presence of the company and the work of an employee, the employer who announced a downtime can apply not only for employees hired before the first quarantine (March 16), but also for employees recruited before the start of the new (local ) quarantine. This procedure also applies to new establishments created after the end of the first quarantine.

Self-employed benefits

Self-employed persons registered with the Employment Service can claim an allowance of 257 euros for a full month if: their activity is registered for at least 3 months. before the announcement of quarantine; the wages received under an employment contract or similar legal relationship do not exceed the minimum monthly wage, i.e. 607 euros on paper; in the case of a legal entity does not have the status of a company in the process of liquidation or bankruptcy. The allowance is provided by the Employment Service and is paid to Sodra on a monthly basis during an emergency or quarantine. At the end of the latter, payment is made for another two months.

Tax aspects

Until December 31, 2020, taxpayers affected by COVID-19 are subject to tax relief measures, that is, until this deadline and for the next two months after that, the latter may be exempted from paying interest on arrears and will not be subject to tax collection procedures. Thus, the tax administrator can be contacted by February 28, 2021 and conclude a tax credit agreement by December 31, 2022 without interest. Deferred tax arrears cannot exceed EUR 300,000 for a company and EUR 100,000 for an individual. In the case of a higher amount of debt, it will be necessary to provide documents confirming the financial position and other necessary documents, a deposit, as well as interest of 0.01% per day will be applied to the larger amount.

When concluding a tax credit agreement, taxpayers can request a one-year deferral of the first payment. The deferred payment does not change the term of the interest-free loan agreement – it can be concluded for a period until 2022. On December 31, Companies can request a breakdown of debt repayments over a longer period, up to a maximum of 5 years.

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