As part of the fight against the COVID-19 pandemic, the Ministry of the Economy has set up a new monthly financial aid for businesses: aid for costs not covered. The aid can be requested for the months of November 2020 to March 2021 inclusive.
Eligible companies have the choice to apply for:
- this aid for costs not covered; or
- aid under the new recovery aid measure.
The 2 aids are
Applications should be submitted to the General Directorate for Small and Medium-Sized Businesses, Department for Support to SMEs at the Ministry of the Economy using MyGuichet.lu.
Who is concerned
With the creation of the aid for "costs not covered", the Luxembourg government intends to support:
- businesses in the tourism sector;
- businesses in the events sector;
- the HORECA sector;
- businesses in the culture and entertainment sector;
- businesses operating a retail trade;
- institutes for continuing vocational training.
Companies that were not set up and carrying out their business activity before 15 March 2020 are not eligible.
The company must meet the following eligibility requirements:
- loss of turnover of 40 % or more:
- for groups of companies: the loss of turnover must have been recorded at the level of all the Luxembourg companies in the group and not at the level of the individual company;
- if it employs staff: it must be properly registered with the Joint Social Security Centre (CCSS);
- if it does not employ staff: at least one self-employed person must be affiliated with the CCSS;
- have a turnover of at least EUR 15,000.
The loss of turnover is assessed by comparing the turnover of the month of the application compared to the same month in 2019. Example:
- the month of November 2020 compared to November 2019;
- the month of December 2020 compared to December 2019;
- the month of January 2021 compared to January 2019, etc.
: if the company did not yet operate during this same month in 2019, it must provide the average monthly turnover achieved between the start of its activities and 31 December 2019.
- The business was set up and started operating on 1 November 2019
- Aid application for January 2021 with a turnover of EUR 15,000
- In this case, the company has no comparative data for January 2019
- The turnover of the month of application (January 2021) should be compared with the average monthly turnover achieved in 2019:
- Turnover from 01/11/2019 to 30/11/2019: EUR 20,000
- Turnover from 01/12/2019 to 31/12/2019: EUR 40.000
- Average monthly turnover in 2019: EUR 30,000
Comparison of the turnover of the month of application (January 2021: EUR 15,000) with the average monthly turnover of 2019 (EUR 30,000): the loss of turnover is 50 % so the application is eligible.
This is the expenditure of the class 6 accounts in the standard chart of accounts, namely:
- consumption of goods;
- other external charges;
- payroll expenses;
- other operating expenses;
- financial charges;
- income taxes;
- other taxes.
Aid applications for "costs not covered" must be submitted by 15 May 2021 incl. at the latest.
How to proceed
Submission of the application
The aid application for "costs not covered" is to be submitted using an online assistant available on MyGuichet.lu.
The person submitting the application must have a LuxTrust product (e.g. Token, Smartcard or Signing Stick) or an electronic identity card (eID).
How to create a business eSpace on MyGuichet.lu
Two scenarios are possible:
- The person submitting the application is a new user on MyGuichet.lu and does not yet have a private eSpace:
The creation of the eSpace is done in 2 steps:
- registration of a user;
- creation of a business eSpace.
A tutorial in video or PDF format is available to guide you.
- The person submitting the application is a user of MyGuichet.lu and already has a private eSpace: they will have to create a new business eSpace.
A tutorial in video or PDF format is available to guide you.
You can consult the help section on MyGuichet.lu.
Applicants must attach the following to their application:
- a balance sheet for 2019;
- failing this, if the business was created recently: a provisional interim balance sheet and provisional interim profit and loss account at the date of the start of the COVID-19 crisis (15 March 2020);
- profit and loss account for the month for which aid is applied for;
- for professionals operating under their own name: accounting documents certifying the totality of their income and expenditure as provided in their application;
- documents concerning the turnover achieved in 2019, i.e.:
- VAT return;
- if there is not yet a VAT return, as the business was set up recently: documents certifying the turnover achieved between the date of creation and the start of the COVID-19 crisis (15 March 2020);
- the latest short-time working statement available;
- a bank statement showing the sums received during the month concerned by the application and which are in relation with short-time working benefits from one or more previous months;
- a certificate of affiliation of the self-employed person, if applicable;
- photographs of the front and interior of the company's premises;
- a bank account identification document;
- in the case of a group of companies (partners holding more than 25 % of the shares in other companies): an organisation chart of the group of companies which clearly indicates for each entity:
- the percentage of shares;
- employment in full-time equivalent (FTE);
- the annual turnover;
- the balance sheet total.
Duration of aid
A separate application must be made for each month: i.e. the company will have to submit a new application each month.
Calculation of the eligible amount
The eligible amount is calculated as follows:
- for the months of November 2020, December 2020 and January 2021: 100 % of the total expenditure for the month (class 6 accounts in the standard chart of accounts / without taking into account any value adjustments);
- for the months of February 2021 and March 2021: 75 % of the total expenditure for the month (class 6 accounts in the standard chart of accounts / without taking into account any value adjustments). This rate is increased to 100 % in the case of a closure imposed by a government decision;
- minus the total income for the month (class 7 accounts in the standard chart of accounts / without taking into account any value adjustments).
Important note concerning income
: according to European rules, the short-time working benefits received for the month relating to the application must be taken into account. However, short-time working benefits are usually entered into the accounts with a delay of 2 or 3 months.
Therefore, it is necessary:
- to not take into account any sums received in connection with short-time work for one or more previous months: any such sums must therefore be deducted ;
- to take into account the sums to be received in connection with short-time work for the month relating to the application: these sums, if any, must therefore be added back.
NOTE: as regards sums received in connection with short-time work for one or more previous months:
- if these sums have been recorded in the profit and loss account for the month of the application: they should be deducted (and therefore mentioned separately in the application);
- if these sums have not been recorded in the profit and loss account for the month of the application: they should not be deducted (and therefore should not be mentioned separately in the application).
Total amount of aid
The subsidy rate for:
- micro- and small enterprises (less than 50 employees) is 90 % of the eligible amount;
- medium and large businesses (50 employees or more) is 70 % of the eligible amount.
However, the total amount of aid per month per single business may not exceed:
- EUR 20,000 for a micro-enterprise;
- EUR 100,000 for a small enterprise;
- EUR 200,000 for a medium-sized enterprise;
- EUR 200,000 for a large enterprise.
Type of aid
This is a direct non-repayable financial aid.
Non-cumulation of aid
The aid for costs not covered cannot be cumulated with the recovery aid.
Good to know
To make this procedure easier to understand, 2 examples are given below:
Forms / Online services
Demande de l'aide "Coûts non couverts"
Who to contact