How the refundable deposit will be paid – Examples

By Prokopi Hadjinikolou

Businesses and freelancers have three options for paying the refundable deposit. In any case, whichever they choose they will have to start paying the amounts due on July 29th.

From the processing of the data, by the Independent Public Revenue Authority, it appears that a total of 605,530 companies received the state loan, participating in one to seven cycles. Of the above, 2,406 were fully exempted from paying the amounts granted to them, while 559,753 were found to be in good order by the audits carried out by the tax administration services. However, there appear to be minor issues (possibly some clarifications) as well as major issues for 43,371 businesses and professionals.

Already, a second re-check has begun and if it is established that the basic conditions of the program (staff retention clause, etc.) have not been met, they will have to return the full amount they received. It is possible that a problem is found in one of the circles that participated and in the rest all the conditions have been met. But for the one cycle, the amount must be returned in full on July 29.

How the amounts will be refunded:

1. The first option is to repay the amounts in 96 interest-free installments. For example, a company that must return a total of 185,000 euros, will have to pay the first installment of 1,927.08 euros on July 29.

2. In the event that someone received money from three cycles, he has the possibility to pay two cycles at once earning an additional discount of 15% and the amounts of the remaining two cycles in 96 interest-free installments. For example, a small business must return the amount of 1,000 euros from participation in the first cycle, 2,170 euros from the second cycle and 3,937.50 from the last cycle. He can pay the first two cycles at once, earning a 15% discount, and in particular, he must pay 2,694.50 (instead of 3,170 euros) and the amount of the last cycle in 96 installments, i.e. 41.02 euros per month.

3. Lump sum payment for all refundable advances received. In this case it will have an additional 15% discount. For example, if someone repays the entire debt amounting to 200,000 euros, he will have a discount of 30,000 euros. In other words, he will return the amount of 170,000 euros. The amount must be paid by July 29.

It is noted that in relation to the initial amounts received by the companies, the aid has been cut as follows:

a) For businesses that started operations before January 1, 2019, did not open a branch from April 1, 2019 to December 31, 2020 and have positive gross income in 2019, in:

– 25% of the aid, if the reduction of the company’s 2020 gross revenue exceeds 70% compared to 2019 and the company shows losses before taxes or

– 33.3% of the aid, as long as the decrease in the company’s 2020 gross revenue amounts to at least 30% and up to 70% compared to 2019 and shows losses before taxes or

– 50% of the aid, for all other businesses.

b) For new businesses that have started operations after January 1, 2019 or for businesses that opened a branch from April 1, 2019 to December 31, 2020 or have zero gross revenue in 2019, in:

– 25% of the aid, if the decrease in the company’s 2020 gross revenue exceeds 30% compared to 2019 revenue and the company shows losses before taxes or

– 33.3% of the aid, for all other businesses