Decision A.1040/2021 of the Deputy Minister of Finance Mr. Apostolos Vesyropoulos was published today in the Official Gazette which amends his decision A.1025/2021 and concerns the identification of the affected businesses for the mandatory exemption from the obligation to pay either the total rent, or 40% of the total rent for the months of January and February 2021.
This decision thus solves the problem that had been created with the incorrect (reduced) rate of reduction that appeared in the branches, while they had KAD which is entitled to a full rent exemption and it is foreseen that the rents will be reduced for the branches as well, appearing in the new COVID statement the most favorable rent reduction rate for tenants, which today is also more favorable for shop owners who will be compensated with 80% of the rent, which is tax-free and non-disposal.
The decision states in detail:
- The under items A.1025/2021(B’ 538 and B’655) decision of the Deputy Minister of Finance is replaced as follows:
“1. The lessee of a business lease to establish a business, which is based or has a branch in the Greek Territory and for which special and extraordinary measures have been taken to suspend or temporarily prohibit operations for preventive or repressive reasons related to the COVID-19 coronavirus or which is affected financially due to the emergence and spread of the COVID-19 coronavirus, i.e. a business which:
a) has an active, main Activity Code Number (KAD) on January 4, 2021 or has an active CAD of a secondary activity on January 4, 2021, to which the largest gross income corresponds based on the initial income tax return of the tax year 2019 and is included in the CAD of the Annex, which is an integral part of this, is exempted from the obligation to pay the total of rent – TABLE A’ – or 40% of the total rent – TABLE B’ – for the months of January and February 2021, applying the most favorable rent reduction rate for the tenant, in derogation of the provisions on leases, in accordance with the provisions of the second and third paragraphs of par. 1 of the second article of the Legislative Content Act of 20.3.2020 (A’ 68), as applicable,
b) has an active, main Activity Code Number (CAN) on January 4, 2021 or has an active secondary activity CAN on January 4, 2021 to which the largest gross income corresponds based on the initial income tax return of the tax year 2019 and is included in the CAN of TABLE B’ of the Annex and has an active main KAD branch/branches on January 4, 2021 included in TABLE A’ of the Annex is exempted from the obligation to pay the total rent, in derogation of the written provisions on leases, in accordance with the provisions of the second and third subsection of par. 1 of the second article of the Legislative Content Act (A’ 68) from 20.3.2020, as applicable. For the application of this, a branch is defined as any professional establishment outside the company’s headquarters, in which a production or trading activity takes place [TAXIS Register subsystem establishment code (10) – branch].
- For the application of the provisions in the previous paragraph, the Activity Code Numbers (KAD) are obtained, as they have been modified in the AADE Tax Register until February 9, 2021.
- Especially for businesses that were not active on 4/1/2021, for the implementation of the provisions set out in paragraph 1 hereof, the main KAD is taken into account on their start date from 4/1/2021 and up to the publication of this one. In the event that the company declared a branch opening date after 4/1/2021, the active main KAD of the branch at the opening of the branch from 4/1/2021 and until the publication of this notice is taken into account.
