SMEs who are directly affected by the various government measures to contain the corona virus can also apply for the Allowance for Fixed Costs SMEs (TVL) again after 1 October 2020. Entrepreneurs in catering, recreation, events, fairs, stages and theaters, for example, receive compensation for their fixed costs up to a maximum of € 90,000 per 3 months depending on the size of the company, the level of the fixed costs and the degree of loss of turnover.
The TVL scheme will be extended by 3 times 3 months up to and including June 30, 2021 and gradually phased out during that period, so that entrepreneurs have time and space to adapt. The TVL is part of the new support and recovery package for the economy and the labor market.
Conditions for TVL extended after October 1, 2020
SME entrepreneurs (maximum 250 employees) receive - in addition to the wage costs allowance (NOW) - a tax-free allowance from the Ministry of Economic Affairs to pay their fixed material costs. The followings conditions apply:
Approximately € 1.8 billion is available as compensation for these companies that employ more than 800,000 people. The affected sectors from the earlier TOGS and TVL regulations are eligible for the extended TVL. Entrepreneurs can apply for the subsidy from 1 October 2020 up to and including 29 January 2021. For the first TVL period from 1 June to 30 September 2020, entrepreneurs can still apply until 30 October 2020 at the latest.
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NAZALI TAX & LEGAL |