JANUARY
For retail, catering, culture, sports , gyms, tourism, transport, hairdressers, beauty salons, bookstores and businesses that remain closed by government order next week, the Ministry of Finance announced that the payment of rent for the month of January 2021 is completely suspended.
80% of the monthly agreed rent, and not on the loss, will be compensated to the owners from the State Budget, so that they have no further losses than those have today. In this way, the cost of the rent is divided by 80% to the State and by 20% to the lessor. Therefore, the business using the property will not pay rent in January.
The measure concerns all businesses that remain closed by government order until January 11. All retail businesses are included, regardless of whether they operate with home delivery e-commerce or telephone commerce services, catering businesses, regardless of whether they operate with product distribution and/or delivery of takeaway products from the store, hair salons and beauty salons , businesses in the cultural and sports sectors, gyms and other businesses that remain closed by government order. In addition, tourism businesses, such as hotels, accommodation and travel agencies, and transport services are included, as they are particularly affected by the ban on travel from prefecture to prefecture.
FEBRUARY
In addition, businesses that remained closed by government order during the holiday season, as well as businesses that will be closed with a state order next week, but also businesses in the tourism and transport sectors, will have an 80% rent discount during the month of February, as already announced, with a 60% sharing of the cost of the rent to the State, 20% to businesses-tenants and 20% to lessors.
COMPENSATIONS FOR LEGAL PERSONS-LESSORS TOO!
For the first time, POMIDA’s request for compensation is also accepted for legal entities – lessors of real estate.
The Ministry of Finance announced the following compensations for all types of legal entities:
For January 2021: Legal entities that lease real estate to the above businesses will be compensated with 60 %of the monthly rent.
For February 2021: Legal entities that lease properties to the above businesses will be compensated with40% of the monthly rent.
PROS AND CONS
“The negative element is the time of collection of the state compensation, which will be later enough to create a problem for lessors with current tax, loan and other obligations, since unfortunately it is not combined with their time-shifting measures. The positive, however, is that the state compensation will be tax-free, and now it is certain that the rent will be collected from the State rather than from closed businesses, so that for a significant number of landlords this solution is much preferable to any other…
