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DIRECT GRANTS

Public grants from the Junta de Andalucía (Andalusian regional government)

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Did you experience losses in your business due to the COVID situation?

The Junta de Andalucía has published a Covid line of direct grants for the self-employed and businesses to mitigate the effects of COVID. This public grants scheme forms part of Royal Decree 5/2021, which sets out to provide companies and the self-employed with EUR 7,000 million in public grants.

What does the grant consist of?

The finalist grant consists of a sum of money which must be exclusively used to pay off debt and make payments to suppliers, including the wages of employees, and other creditors, financial or non-financial, and the fixed costs incurred by the party applying for the grant, provided the payments accrued between 1 March 2020 and 31 May 2021, in relation to contracts prior to 13 March 2021, and, in all cases, are pending payment at 31 May 2021 and are cash debts.

What are the specifications in Andalusia with respect to RD 5/2021?

The grants will also extend to sectors affected in the Region of Andalusia, a total of 249 economic activities accepted in the public notice, an extension of 154 with respect to the 95 originally stipulated in Royal Decree 5/21.

Additionally, the procedure for approval of the subsidy in Andalusia is carried out in two phases. Phase 1 consists of filling in a preliminary form authorising the Junta de Andalucía and the AEAT tax agency to consult the company's tax data for an automatic calculation of the subsidy applicable if the requisites have been met. Subsequently, during Phase 2, when the automatic consultation of the AEAT shows a positive outcome, the potential beneficiary may present a second form to commence the approval procedure.

Which persons can be beneficiaries?

The following persons can be beneficiaries of direct grants¹:

Entrepreneurs or professionals, entities, permanent establishments of persons or non-financial non-resident entities and groups carrying out any of the economic activities listed in Annexes I and II of the Decree-Law, whose annual volume of operations, in value-added tax (VAT) or equivalent indirect tax in 2020 fell by more than 30% with respect to 2019.
Entrepreneurs or professionals applying the objective-estimate personal income tax system carrying out any of the economic activities listed in Annexes I and II of the Decree-Law.

Nor will the authorities consider as potential beneficiaries any entrepreneurs or professionals, consolidated entities and groups which, in their direct estimate of personal income tax, corporation tax or non-resident income tax for 2019 declared a net negative result.

What requirements must I satisfy?

Beneficiaries of the grants must meet the following requisites:

They must be registered for tax purposes in Andalusia (with the exception of the scenarios stipulated in Article 5.2 section h) of the Decree-Law.¹.
They must have carried on at least one of the economic activities defined in Annexes I and II of the Decree-Law (see link) in 2019 and 2020, and still be exercising this activity when the application is made.
They must not have been convicted on a firm ruling barring them from obtaining subsidies or public grants or for offences relating to prevarication, bribery, misappropriation of public funds, influence peddling, fraud and illegal collection of funds or urban development offences.
They must not have given rise to the definitive termination of any contract drawn up with the authorities.
They must not have requested voluntary bankruptcy proceedings, they must not have been declared insolvent in any proceedings, they must not be in bankruptcy, unless an agreement has been reached in such proceedings, they must not be subject to judicial proceedings or have been declared ineligible as per Bankruptcy Law 22/2003 of 9 July, if the period of ineligibility established in the bankruptcy ruling has not terminated.
They must not have tax residence in a country or territory officially classified as a tax haven.
They must be up to date concerning compliance with their tax and social security obligations.
They must be up to date with the payment of their obligations in relation to refunds of subsidies and public grants.

The formula for calculating the volume of operations to be considered to determine the downturn in activity in accordance with the various types of potential beneficiaries is established pursuant to the criteria defined in Article 5 of the Decree-Law.

In addition to these requisites, the beneficiaries of the grants must undertake the following obligations:

They must continue the activity making them eligible for the subsidy up to 30 June 2022.
Refrain from distributing dividends in 2021 and 2022.
Refrain from approving any increases in the remuneration of senior management over a period of two years following approval of the subsidy.
Provide any information that may be required by the Junta de Andalucía, for proper administration and management of the subsidy.
Provide the Junta de Andalucía with the information necessary for compliance with the stipulations of Law 1/2014 of 24 June.
They must submit to any checking and financial controls that may be carried out by the Junta de Andalucía's Financial Accounting Department, the Court of Auditors and the Andalusian Accounts Board.
The general obligations set out in Articles 14.1 and 46.1 of Law 38/2003 of 17 November.

How much is the grant?

The subsidy will consist of an amount calculated pursuant to the following criteria:

Entrepreneurs or professionals applying the objective-estimate personal income tax system: the subsidy will be approved as the lesser amount of the total sum set out in the application as subsidisable expenditure and EUR 3,000.

Entrepreneurs and professionals with a downturn of more than 30% in 2020 in their annual volume of business, in VAT or equivalent indirect tax, with respect to 2019: the subsidy will be approved as the lesser amount of the total sum set out in the application as subsidisable expenditure and the following:

A 40% downturn in the volume of operations in 2020 with respect to 2019, in excess of 30%, an amount which may not be less than EUR 4,000 or more than EUR 200,000, in the case of entrepreneurs or professionals applying the personal income tax direct-estimate system, and also permanent establishments and entities with a maximum of 10 employees.
A 20% downturn in the volume of operations in 2020 with respect to 2019, in excess of this 30%, an amount which may not be less than EUR 4,000 or more than EUR 200,000, in the case of companies and entrepreneurs or professionals and permanent establishments with more than 10 employees.

Companies that have made a structural modification to the company: the subsidy will be approved as the lesser amount of the total sum set out in the application as subsidisable expenditure and EUR 3,000.

In the event of registration of activity or incorporation of companies after 31 December 2019: the subsidy will be approved as the lesser amount of the total sum set out in the application as subsidisable expenditure and EUR 3,000.

What documentation will I be asked for in the application?

During Phase 1 of the application process, the party concerned must present a preliminary form with at least the following information, using the standardised format established to this end:

Tax number of the applicant.
Indication of whether they intend to apply for grants in territories other than that in which they are registered for tax.
Whether, in 2019 and 2020, they formed part of a group applying a special-territory tax consolidation system, the composition of this group in 2020, and whether any of its companies paid VAT to a special-territory tax authority exclusively during those years.
Whether, in 2019 and 2020, they formed part of a group applying a common-territory tax consolidation system, and whether any of its companies exclusively paid VAT to a special-territory tax authority during those years.
Whether they exclusively carry out operations not liable for tax or exempt from tax with no obligation to submit periodic VAT self-assessments, and determine payment in instalments in accordance with the procedure described in Article 40.2 of Corporation Tax Law 27/2014 of 27 November, or whether they are entities using the income-allocation system.

When the preliminary form has been completed in Phase 1, and when the communication has been provided for the Junta de Andalucía to gain access to the reply facilitated by the AEAT as to whether the potential beneficiaries meet the requisites established in the public notice, the parties concerned may initiate the procedure to apply for approval of the subsidy (Phase 2) by filling in the standardised document to this end, which requires the following data:

The data of the entity or the party concerned and, where applicable, of the representative.
Mobile phone number and e-mail address of the party concerned
A list of the debts, payments pending and fixed costs incurred and pending payment to which the subsidy will be applied, along with the limit of the maximum amount corresponding, including identification of the supplier/creditor, the item, excluding VAT, the total amount pending payment and the date of issuance.
Digitalised copy of the invoices in the preceding list or documents with equivalent probatory value.
Amount requested, which will be the sum of the amounts pending payment in relation to the debts, payments and fixed costs incurred that meet the preliminary requisites in the public notice, calculated pursuant to the criteria of Article 7 of the Decree-Law.
Bank account to enable the payment to be made.
CNAE activity code with respect to which the subsidy is being requested, within those established in Annexes I and II of the Decree-Law.
A responsible declaration by the signatory, as follows:

That they are acting as the representative of the applicant, and are authorised to represent it at the time of signature of the application, where applicable.
That they meet the requisites to act as the company or person benefiting from the subsidies regulated in this Decree-Law.
That they are unaffected by any of the circumstances making them ineligible as a beneficiary.
That they are the holder of the bank account stated in the application to receive the subsidy.
Situation in relation to applications for other subsidies, grants, income or resources for the same purpose, from any public authorities or public or private domestic or foreign bodies.
That the list of debts, payments pending and fixed costs incurred pending payment to which the subsidy will apply meets the requisites of the public notice and the veracity of the digitalised copies of the invoices or documents with an equivalent probatory value.
If the applicant is affected by any of the scenarios stipulated in the second paragraph of Article 6.2, Article 6.3 or Article 6.5 of the Decree-Law. In the case of Article 6.3, they will have to state the net turnover for the years 2019 and 2020.
That they undertake to refrain from approving any increases in the remuneration of senior management over a period of two years following approval of the subsidy, to maintain the activity relating to the subsidy at 30 June 2022, and to refrain from distributing dividends in 2021 and 2022.
That all the data in the application are truthful.
That, if they become a beneficiary, they undertake to comply with the conditions imposed and to maintain the requisites demanded over the period envisaged, and to notify any changes to same.

In order to verify that the persons or companies applying for the subsidies meet the requisites demanded, presentation of the application will automatically entail authorisation to the management body to consult or collect the certifications or the necessary data issued by the AEAT tax agency, the General Social Security Treasury and the department responsible for treasury affairs in the Junta de Andalucía.

Finally, in relation to accreditative documentation, there is no need to present any additional documentation along with the application and the digitalised copies, except in the following scenarios:

Evidence of the existence of the situation envisaged in the second paragraph of Article 6.2 of the Decree-Law must be provided by the applicant by submission of the declarations presented in the year 2019, forms 100 or 200, for personal income tax, corporation tax or non-resident income tax, respectively, and a certified list of the bankruptcy credits issued by the receiver of the debtor company.
If the person or company concerned presents the application through an officially designated representative, who is not a legal representative, if the power of attorney is electronic, the document accrediting this; otherwise, the person will fill in the representational certificate which will be published in the Official Gazette of the Junta de Andalucía with the extract of the public notice of this Decree-Law.
If the beneficiary is taking part in a structural modification operation, copy of the public deed and entry in the public register concerned, or document accrediting the operation, if no public deed is required to enter the operation concerned, pursuant to the regulations applicable.

How is my grant justified when it is approved?

The beneficiaries of public grants are obliged to provide justification for the utilisation of the funds approved, pursuant to the purpose of this grant. Thus the beneficiaries will be required to present the following justificatory documentation between 1 November 2021 and 31 March 2022, and the latter day is the last day for effecting payment of the debts, payments and fixed costs incurred to which this subsidy applies:

With respect to the list of debts, payments and fixed costs incurred that have been paid, presented along with the application, for each of these items digitalised copies demonstrating payment will be attached, showing the identification of the receiver of same, and the date of payment. When the creditors are financial institutions, a certificate from the financial institution attesting to total or partial cancellation of the debt will be attached.
Within a maximum period of three months, two years after the date of approval of the subsidy, a certificate must be presented to accredit that no increases in the remuneration of senior management have been approved.
A breakdown of any other income or subsidies that have financed the items subsidised, with an indication of the amount and origin.
Where applicable, letter of payment of a refund in the event of any remainders not applied, and the interest they carry.

The person or company benefiting from these grants must also maintain the activity producing entitlement to them at 30 June 2022, and refrain from distributing dividends in 2021 and 2022, circumstances which will be notified by the AEAT tax agency to the Autonomous Community of Andalusia. Otherwise, the grants received must be returned.

What is the deadline, and how can I apply for the grant?

The procedure for applying for the grant is carried out in two different processes, and the period for submission is from 15 June to 15 September (both inclusive).

During Phase 1, the applicant must fill in a preliminary form in order to ascertain that they meet the requisites to be a beneficiary through the supply of information by the state tax agency (AEAT) and certain data provided by the party concerned on this form.

During this Phase 1, the Junta de Andalucía will initiate proceedings with the AEAT to verify that the persons or companies wishing to obtain the subsidy are tax-resident in the Autonomous Community of Andalusia or carry out one of the economic activities defined in the public notice, and other requisites of Article 5 of the Decree-Law.

The preliminary form will be filled in telematically by means of an electronic certificate or an operational electronic signature, and will be available on the website of the Junta de Andalucía (see link).

The Junta de Andalucía will then notify the parties concerned whether pursuant to the information supplied by the AEAT the preliminary requisites stipulated in the public notice have been met, and the maximum amount that could be requested, which would enable the party concerned to proceed with Phase 2.

It is most important to bear in mind that completion of this preliminary form and the supply of information requested of the party concerned for these proceedings will under no circumstances be considered the official commencement of the procedure for approval of the subsidy, and will not generate any expectations of rights.

During Phase 2, following a positive outcome to the automatic consultation with the AEAT, the potential beneficiary must present a second form (see link), within ten days of notification, in order to commence the administrative procedure for approval of the subsidy.

Concerning the date of presentation of the application, the system will be retrospective with regard to the time at which the preliminary form was completed during Phase 1. If it is not presented within the period stipulated, the date of presentation of the application will be that on which it was actually presented, provided this is within the timeline for presentation of applications.

For more information on the public grants scheme, go to the Official Gazette of the Junta de Andalucía to consult the Decree-Law and details of the notice posted (see link).

Annex. List of CNAE-09 activities added by the Autonomous Community of Andalusia.

CNAE-2009	DESCRIPTION ACTIVITY
1011	Meat processing and conservation
1013	Preparation of meat and poultry products
1102	Winemaking
1104	Production of other non-distilled fermentation beverages
1105	Production of beer
1106	Production of malt
1107	Manufacture of non-alcoholic beverages; production of mineral waters and other bottled waters
1310	Preparation and weaving of textile fibres
1320	Manufacture of textile fabrics
1330	Textile finishes
1391	Manufacture of knitwear fabrics
1392	Manufacture of items produced with textiles, excluding clothes
1393	Manufacture of rugs and carpets
1394	Manufacture of ropes, cords, strings and nets
1395	Manufacture of non-woven fabrics and items produced with them, excluding clothes
1396	Manufacture of other textile products for technical and industrial usage
1399	Manufacture of other textile products not included elsewhere
1411	Production of leather items of clothing
1412	Production of work clothes
1414	Production of underwear
1431	Production of stockingwear
1511	Preparation, tanning and finishing of leather; preparation and dying of hides
1512	Production of leatherwork items, travelwear, saddlery and harnessry
1520	Production of footwear
1623	Production of other wooden structures and joinery sections and fine woodworking for construction
1629	Production of other wood products; cork items, for basketmaking and espartograss products
2229	Manufacture of other plastic products
2331	Manufacture of ceramic tiles and slabs
2341	Manufacture of ceramic items for household and ornamental use
2349	Manufacture of other ceramic products
2410	Manufacture of basic iron, steel and ferrous alloy products
2512	Manufacture of metal trims
2550	Metal forging, stamping and drawing; powder metallurgy
2561	Treatment and cladding of metals
2562	Mechanical engineering for third parties
2751	Manufacture of household appliances
3299	Other manufacturing industries not included elsewhere
3311	Repair of metal products
3312	Machinery repairs
3313	Repair of electronic and optical equipment
3314	Repair of electrical equipment
3315	Naval repair and maintenance
3317	Repair and maintenance of other transportation equipment
3319	Repair of other equipment
4110	Real estate development
4321	Electrical wiring systems
4322	Plumbing, heating and air conditioning systems
4329	Other installations in construction work
4332	Carpentry facilities
4334	Painting and glazing
4511	Sale of cars and light motor vehicles
4519	Sale of other motor vehicles
4520	Maintenance and repair of motor vehicles
4531	Wholesale trading in motor vehicle spare parts and accessories
4532	Retail trading in motor vehicle spare parts and accessories
4540	Sale, maintenance and repair of motorcycles and their spare parts and accessories
4611	Trade intermediaries in raw agricultural materials, live animals, raw textile materials and semi-finished products
4612	Trading intermediaries in fuels, minerals, metals and industrial chemicals
4613	Trade intermediaries in wood and construction materials
4614	Trade intermediaries in machinery, industrial equipment, boats and aircraft
4615	Trade intermediaries in furniture, household articles and hardware
4618	Trade intermediaries specialising in the sale of other specific products
4619	Trade intermediaries in miscellaneous products
4641	Wholesale trading in textiles
4642	Wholesale trading in clothing and footwear
4643	Wholesale trading in household appliances
4645	Wholesale trading in perfumes and cosmetics
4647	Wholesale trading in furniture, carpets and lighting equipment
4649	Wholesale trading in other household items
4671	Intermediaries trading in foodstuffs, beverages and tobacco products
4672	Wholesale trading in metals and metal minerals
4690	Non-specialised wholesale trading
4711	Retail trading in non-specialist establishments, mostly foodstuffs, beverages and tobacco
4730	Retail trading in clothing in automotive fuel in specialist establishments
4742	Retail trading in telecommunication equipment in specialist establishments
4743	Retail trading in audio and video equipment in specialist establishments
4752	Retail trading in hardware, paint and glass in specialist establishments
4753	Retail trading in rugs, carpets, wall and floor claddings in specialist establishments
4754	Retail trading in household appliances in specialist establishments
4759	Retail trading in furniture, lighting equipment and other household items in specialist establishments
4761	Retail trading in books in specialist establishments
4763	Retail trading in recordings of music and videos in specialist establishments
4764	Retail trading in sport equipment in specialist establishments
4765	Retail trading in games and toys in specialist establishments
4773	Retail trading in pharmaceutical products in specialist establishments
4774	Retail trading in medical and orthopaedic items in specialist establishments
4775	Retail trading in cosmetic and hygiene products in specialist establishments
4776	Retail trading in flowers, plants, seeds, fertilisers, pets and their food in specialist establishments
4778	Other retail trading in new items in specialist establishments
4779	Retail trading in second-hand items in establishments
4781	Retail trading in food, beverages and tobacco in stalls and in markets
4791	Retail trading by correspondence or Internet
4941	Goods road haulage
4942	Removals services
5020	Goods sea transport
5040	Goods transport on inland waterways
5121	Goods air transport
5122	Spatial transport
5210	Deposit and storage
5224	Goods handling
5229	Other activities attached to transport
5310	Postal activities subject to universal service obligation
5811	Book publishing
5814	Magazine publishing
5819	Other publishing activities
5821	Publishing of video games
5829	Publishing of other computer programmes
5912	Activities involving post-production of films, videos and television programmes
5915	Activities involving film and video production
5916	Production activities for television programmes
5917	Activities involving film and video distribution
5918	Distribution activities for television programmes
5920	Activities involving sound and music recordings
6810	Trading in own property
6820	Own property rentals
6831	Real estate agents
6832	Management and administration of properties
7111	Technical architecture services
7112	Technical engineering services and other activities related to technical advisory
7311	Advertising agencies
7312	Communication media representation services
7320	Market surveys and conducting public market surveys
7410	Specialist design activities
7430	Translating and interpreting
7490	Other professional, scientific and technical activities not included elsewhere
7731	Rental of agricultural equipment and machinery
7732	Rental of machinery and equipment for construction and civil engineering
7810	Placement agency activities
7820	Temporary employment agency activities
7830	Other provision of human resources
8010	Private security activities
8110	Integral building and facility services
8121	General cleaning of buildings
8122	Other industrial cleaning and cleaning of buildings
8129	Other cleaning activities
8130	Gardening activities
8211	Combined administrative services
8532	Technical and professional secondary education
8544	Non-university tertiary education
8551	Sport and recreational education
8552	Cultural education
8553	Activities of driving and racing driver schools
8559	Other education not included elsewhere
8560	Ancillary educational activities
8690	Other healthcare activities
8811	Non-residential social services activities for the elderly
8812	Non-residential social services activities for people with disabilities
8891	Daytime child care activities
8899	Other non-residential social services activities not included elsewhere
9003	Artistic and literary creation
9105	Library activities
9106	Archiving activities
9602	Hairdressing and other beauty treatment
9609	Other professional services

1. Groups and entrepreneurs, professionals or entities whose volume of operations in 2020 has been more than 10 million euros that develop their economic activity in more than one autonomous territory or in more than one Autonomous City, may participate in the calls that are made in all the territories in which they operate.

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