On Saturday 7 November 2020, the Greek Government announced a three-week national lockdown after a sharp increase in the COVID-19 infection rate. Employment and tax measures have been implemented to cushion the financial impact on companies.
Financial support of EUR 3.3 billion will be provided to workers and businesses affected by the special measures, which will see non-essential retail, dining, and entertainment closed and restrictions placed on citizens’ movements.
Compulsory teleworking has been introduced for 50% of personnel.
Employees’ working schedules should be adapted and reformulated to avoid overcrowding in the workplace.
Employees of affected businesses may be suspended by their employers and receive state monetary aid, while their social security contributions will be totally covered by the state. The aid will amount to EUR 800 for those in employment up to 4 November 2020 and suspended for the month of November.
Tax and Other Measures
- Suspension of VAT payment for November, or payment of due debts in 12 instalments with zero interest.
- Suspension of tax and social security contribution payment instalments for the month of November for the businesses suspended by state.
- Expansion of the Returnable Deposit Scheme, a collateral fund for small and medium-sized enterprises.
- Suspension of cheque payments.
- Reduction of rent up to 40% for affected businesses and for private tenants whose employment contracts have been suspended. In return, property owners who lease their properties are entitled to receive half of their rent loss immediately from the state.
How much money small and medium-sized companies affected by the corona pandemic will receive from the state A) Businesses suspended by the state, regardless of their turnover, will receive a minimum of EUR 2,000 economic support. B) For businesses seriously affected by the spread of COVID-19 based on their Activity Code number as of 5 November 2020 which fulfil the criteria prescribed in Ministerial Decision nos.GDOY (ΓΔΟΥ) 281/2020 and GDOY (ΓΔΟΥ) 282/2020 and with a decrease in turnover of 20% in relation to the reference turnover, which should amount to more than EUR 300, the minimum economic support they will receive will amount to:
- 1. EUR 2,000 for businesses with no employees under contract on 1 September 2020.
- 2. EUR 4,000 for businesses with 1 to 5 employees under contract on 1 September 2020.
- 3. EUR 8,000 for businesses with 6 to 20 employees under contract on 1 September 2020.
- 4. EUR 15,000 for businesses with 21 to 50 employees under contract on 1 September 2020.
- 5. EUR 30,000 for businesses with at least 51 employees under contract on 1 September 2020.
- 6. For businesses not covered by any of the above, the minimum economic support they will receive will amount to EUR 1,000.
For businesses suspended by the state and businesses seriously affected by the coronavirus pandemic, 50% of the returnable deposit will be seen as a government subsidy and must not be returned to the state.
For further information please contact:
ECOVIS HELLAS L.T.D., Athens, Greece