28 August, 2020

Deadline for submitting applications to determine the eligible amount of state aid

Applications to determine the eligible amount of state aid can be submitted by 31 August 2020

The deadline for submitting applications for determining the eligible amount of state aid, as set out in ZIUZEOP-A, expires on 31 August 2020.

In accordance with ZIUZEOP, the total amount of public funds received by a company with regard to salary compensation and exemption from contributions referred to in Articles 28 and 33 of ZIUZEOP may not exceed EUR 800,000 (or EUR 120,000 in case of a company active in the fisheries and aquaculture sector, or EUR 100,000 in case of a company active in the field of primary production of agricultural products).

Despite these limitations, the law allows large companies, which have received public funds in an amount that exceeds the above mentioned maximum values, to be allocated additional public funds (exceeding the above mentioned maximum) in accordance with the rules on state aid to compensate for damage caused by an extraordinary event. This gives large companies the opportunity to receive (or retain) public funds exceeding the maximum value, however, they have submit an application to the Ministry of Labor, Family and Social Affairs by no later than 31 August 2020 to determine the eligible amount of state aid, in which the damage caused to the company by COVID-19 must be demonstrated.

If the application is not submitted or approved, it can be expected that the received state aid will have to be returned.

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