Micro-enterprise subsidy scheme approved
On 11 May 2020, the Government of the Republic of Lithuania approved the description of the procedure for the distribution and use of the measure “subsidies for micro-enterprises”, according to which enterprises with between 1 and 9 employees can apply for subsidies. The total amount available for this measure is EUR 100 million. The form of financing provided under this measure is a non-repayable grant.
What are the requirements for a company to qualify for this grant?
Undertakings applying for a grant under this measure must meet all of the following criteria:
- The enterprise had between 1 and 9 employees on 1 May 2020;
- the enterprise is included in the lists of enterprises affected by COVID-19 drawn up by the National Tax Office;
- the company has paid the full amount of personal income tax (hereinafter “PIT”) for the year 2019;
- the company is not bankrupt, restructured or in liquidation.
How much will the subsidy be paid?
The amount of the subsidy will be calculated on the basis of the amount of the company’s GST paid in 2019:
- if the company’s GST paid in 2019 is up to €1,000, a subsidy of €500 will be granted;
- if the company’s GST paid in 2019 is between €1,000 and €2,000, a subsidy of €1,000 will be granted;
- if the company’s GST paid in 2019 is more than EUR 2 000, half of the applicant’s GST paid in 2019 will be granted.
It is important to note that the amount of aid granted to a single enterprise, including other measures, must not exceed EUR 200 000 over the last three financial years. It should be noted that these ceilings are lower for some sectors:
- for an undertaking carrying out road haulage activities for hire or reward, the amount may not exceed EUR 100 000;
- for a company in the agricultural sector, EUR 20 000;
- for an undertaking in the fisheries and aquaculture sector: EUR 30 000.
Submission of the application
Eligible companies will receive an invitation to submit an application via their My VMI account. The invitation will contain a link to the grant application form and where to submit the grant application.
The application should be submitted before the full amount of EUR 100 000 000 has been allocated, but no later than 1 December 2020.
It is announced that the grant should be paid to the company within 3 working days.
