Z7_3OKIGJ82OO2I60QB5E3UJA34Q1

Public grants

Public grants in the Community of Extremadura

Z7_3OKIGJ82OO2I60QB5E3UJA34Q3

The Junta de Extremadura 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.

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

The Community of Extremadura has expanded the subjective scope of beneficiaries of direct grants initially provided for in Royal Decree 5/2021, to those sectors of activity most affected within the autonomous community, reaching a total of 204 admissible CNAEs.

Which persons can be beneficiaries?

Companies, whatever their legal form, may apply for the grant, including freelancers and professionals who have a production centre in Extremadura and who carry out any of the business activities that are listed in Annex of decree-law (see link).

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; and (ii) companies, freelancers or professionals who started their activity after 31 March 2020.

What requirements must I satisfy?

Beneficiaries of the grants must meet the following requisites:

Have a tax residence in Extremadura if the company had a turnover of more than 10 million euros in 2020. If the turnover exceeded that amount, the tax residency must, as a minimum, be in Spain¹.

They must have developed at least one of the economic activities defined in Annex I of the Decree-Law (see link) in 2019 and 2020, and still be exercising this activity when the application is made.

They must be up to date with payment oftax obligations and social security and autonomous community payments.

They must not have declared losses in 2019.

Havingsuffered more than a 30% drop in the volume of operations in 2020 compared with the volume in 2019. This requirement is not required in the following assumptions:

If the company is in the objective-estimate personal income tax system in 2019 or 2020.
Having started their activity or having undergone a structural change in the company on or after 1 January 2019.

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

They must continue the activity that makes them eligible for the subsidy until 30 June 2022.

They must allocate the grant in accordance with the provisions of article 4 of the Decree-Law

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.

The general obligations provided for in article 13 of Law 6/2011, of 23 March, on Subsidies of the Autonomous Community of Extremadura.

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.

For those companies that started their activity on or after 1 January 2019 or have made a structural change in the company as of that date,the grant will be determined based on the debts and pending payments that it has, with a limit of 3,000 euros if it is in the objective-estimate personal income tax system and of 20,000 euros if it is in another tax regime..

What documentation will I be asked for in the application?

The following documents (if applicable) must be provided with the application:

List of debts with suppliers and other creditors, financial and non-financial, to whose payment the subsidy will be allocated, identifying the creditor, the date of the debts and the amounts. It is recommended to use the template in the “Covid solvency grants portal” of the Junta de Extremadura (see link).

Certificate that proves that the company requesting the grant is up to date with its tax obligations with the state tax agency if the investigating body has not been expressly authorised to collect such data ex officio.

Certificate that proves that the company requesting the grant is up to date with its social security obligations when it has expressly denied the investigating body authorisation to collect such data ex officio.

Certificate that proves that the company requesting the grant does not have debts with the tax agency of the autonomous community of Extremadura when it has expressly denied the investigating body authorisation to collect such data ex officio.

How is my grant justified when it is approved?

Beneficiaries will have a maximum period of two months from the date of receipt of the grant to allocate its amount to pay the subsidisable expenses, having a maximum period of two additional months to submit the supporting documentation electronically through the "Covid solvency grant portal" of the Junta de Extremadura de la Junta d'Extremadura (see link).

To justify compliance with the conditions imposed and the achievement of the objectives set with the granting of the subsidy, the following documentation must be submitted:

If the grant is for an amount less than 20,000 euros, the beneficiaries must submit a simplified supporting account,which will contain the following content:

A report on justificatory action for compliance with the conditions imposed on approval of the subsidy . This report will indicate whether there have been any types of deviations with respect to the detailed list of debts and pending payments to suppliers and other creditors, financial and non-financial, declared in the application, justifying in any case the causes of these possible variations, as well as the order of priority followed in the payments made

A financial report that will contain:

- - Aclassified list of the subsidisable debts and expenses, identifying the creditor and the supporting documents, its amount, date of issue and date of payment
  - Detailed breakdown, if applicable of any other possible income or subsidies that have financed the activity subsidised, with an indication of the amount and origin.

If the grant is for an amount equal to or greater than 20,000 euros, the beneficiaries must submit a short supporting account with the same content and format detailed above for the simplified supporting accounts, accompanied by an account auditor's report registered in the Official Registry of Auditors dependent on the Instituto de Contabilidad y Auditoría de Cuentas (Spanish Accounting and Audit Institute).

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

The period for submission of applications begins on 1 July and ends on 21 July 2021..

Applications, along with the documentation required, may be submitted in telematic format only and the company or their representative must have a digital signature.

The applicant must submit their application via the “Covid solvency grants portal” of the Junta de Extremadura (see link).

The parties concerned must also consider that these subsidies will be awarded in the order of presentation of the applications, complete and properly filled in, until the budget for these grants has been exhausted.

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

Appendix. List of CNAE-09 activities added by the Autonomous Community of Extremadura.

CNAE-2009	DESCRIPTION ACTIVITY
141	Bovine livestock milk-production operations
142	Other bovine livestock and buffalo operations
143	Operations with horses and other equine livestock
145	Ovine and caprine livestock operations
146	Porcine operations
147	Poultry breeding
149	Other livestock operations
150	Agricultural production in combination with livestock production
811	Extraction of ornamental rock and rock for construction, limestone, gypsum, chalk and slate
1011	Meat processing and conservation
1013	Preparation of meat and poultry products
1053	Production of cheese
1071	Production of bread and fresh bakery and cake products
1089	Preparation of other foodstuffs not included elsewhere
1102	Winemaking
1104	Production of other non-distilled fermentation beverages
1105	Production of beer
1310	Preparation and weaving of textile fibres
1320	Manufacture of textile fabrics
1330	Textile finishes
1392	Manufacture of items produced with textiles, excluding clothes
1414	Production of underwear
1512	Production of leatherwork items, travel wear, saddlery and harnesses
1629	Production of other wood products; cork items, for basketmaking and esparto grass products
1723	Production of stationery items
2312	Handling and transformation of flat glass
2320	Manufacture of refractory ceramic products
2331	Manufacture of ceramic tiles and slabs
2341	Manufacture of ceramic items for household and ornamental use
2370	Rock cutting, carving and finishing
2410	Manufacture of basic iron, steel and ferrous alloy products
2550	Metal forging, stamping and drawing; powder metallurgy
2611	Manufacture of electronic components
2612	Production of assembled printed circuits
2620	Production of computers and peripherals
2640	Manufacture of electronic consumer products
2790	Manufacture of other electric material and equipment
3109	Manufacture of other furniture
3220	Manufacture of musical instruments
3230	Manufacture of sports equipment
3299	Other manufacturing industries not included elsewhere
4511	ale of cars and light motor vehicles
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
4614	Trade intermediaries in machinery, industrial equipment, boats and aircraft
4615	Trade intermediaries in furniture, household articles and hardware
4619	Trade intermediaries in miscellaneous products
4621	Wholesale trading in cereals, leaf tobacco, seeds and animal fodder
4622	Wholesale trading in flowers and plants
4631	Wholesale trading in fruit and vegetables
4632	Wholesale trading in meat and meat products
4633	Wholesale trading in dairy produce, eggs, oils and edible fats
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
4711	Retail trading in non-specialist establishments, mostly foodstuffs, beverages and tobacco
4722	Retail trading in meat and meat products in specialist establishments
4729	Other retail trading in foodstuffs in specialist establishments
4730	Retail trading in clothing in automotive fuel 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
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 specialised establishments
4781	Retail trading in food, beverages and tobacco in stalls and markets
5811	Book publishing
5812	Publishing of phone books and address guides
5814	Magazine publishing
5819	Other publishing activities
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
6010	Broadcasting activities
6020	Television broadcasting and programming activities
6391	News agency activities
6399	Other information services not included elsewhere
6832	Management and administration of properties
7410	Specialist design activities
7490	Other professional, scientific and technical activities not included elsewhere
8510	Pre-primary education
8541	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
8622	Specialised medicine activities
8891	Daytime child care activities
9003	Artistic and literary creation
9312	Sports club activities
9522	Repair of household appliances and equipment for home and garden
9529	Repair of other personal effects and items for household use
9602
9609	Other personal services not included elsewhere

1. Groups and entrepreneurs, professionals or businesses whose volume of operations in 2020 exceeded EUR 10 million, carrying on their economic activity in more than one autonomous community or in more than one autonomous city, can apply for schemes in all territories in which they operate.

Direct Grants Simulator

Find out how much of a direct grant your business could benefit from.

GO TO THE SIMULATOR

Z7_3OKIGJ82OO2I60QB5E3UJA3460