A new aid state scheme – hg 332/2014

Ministry of Finance through the Department of State Aid will run from 1st of  July a new scheme of state aid that will be valid until 31 December 2020 and will have a total budget of about 600 million euros, with the possibility of supplementing.

Estimated total number of firms which will benefit of state aid is 1.500.

Eligible expenses

Salary costs are considered eligible expenses recorded for a period of 2 years consecutive, following the creation of jobs.

State aid for the eligible expenses is granted under the following conditions:

• Jobs are directly created by an investment project;

It is not required a minimum investment project but it has to start after issuing the grant agreement.

• Jobs are created after the receipt of the funding agreement, but no later than three years from the date of completion of the investment.

It is possible to submit a project for multiple locations but creating at least 20 jobs / location .

Are considered newly created jobs if between employees and the employer or its associated companies has no employment relationship in the last 12 months prior to the filing of the financing agreement.

Eligibile activities

Are eligible publishing activities software production (582), information technology service activities (620), computer service activities (63); excluded activities such as: agriculture, trade, hotels, restaurants, transportation, gaming, telecommunications, rent, lease etc.

Eligibile companies

Can apply  both existing and newly created enterprises.

Existing enterprises must have had a good financial situation in 2013: positive equity, the profitability of turnover grater or equal 1%.

New enterprises are eligible only if the shareholders not carrying out or have not carried out its activity for applying for funding through other companies in the past two years.

Refundable aid

Gross intensity of regional aid reported to the eligible expenditure

Beneficiaries may request payments four times a year, strictly in relation to salary costs incurred in accordance with approved project; refunds will be made within 45 working days from the date the refund application is considered complete.

Working procedure

The scheme will be active from 1 st of  July this year. Shall be deposited in a session for submission -20 days the preliminary documentation(the calendar of the creation of jobs, tax certificates, etc.) upon which is given a score  to  the society.

The criteria for calculating the score for enterprises demanding state aid are: the number of new jobs created during the creation of at least 20 jobs, the location of the investment, the profitability of turnover, value of the issued share capital.

Companies that qualify will submit complete business plan, and of these, those eligible will receive grant agreement.

The companies will have to wait about 6 months to issue funding agreements, therefore, will have to plan to start both project investment and creating new jobs thereafter

Small and medium enterpries are required to retain new employees for 3 years from the date of their creation and large companies for 5 years.