Decreto-Lei n.º 135-B/2017
- Emissor:Planeamento e das Infraestruturas
- Tipo de Diploma:Decreto-Lei
- Páginas:5876-(18) a 5876-(21)
Summary in plain english (Without legal value)
What is it?
This decree-law creates the Support System for Restoring Competitiveness and Productive Capacity.
The Support System for Restoring Competitiveness and Production Capacity is intended to help the companies directly affected by the fires of 15 October 2017 in the North and Central regions to enable them to restart their business.
What will change?
Rules will be defined to support the companies directly affected by the fires of 15 October 2017 in the North and Central regions to enable them to restart their business. This support is intended to pay for:
- rolling stock directly related to their activity (for example, vehicles used in the production process of a factory)
- necessary reconstruction work for the company to restart its activity.
How will companies be supported?
Companies will receive funding support allowing them to make necessary investments. The supported companies do not have to reimburse the State.
To define the maximum amount to be given to each company, the money received from insurance, donations or other fire damages compensation will be deducted from the value of the losses.
How will the amount be calculated?
For investments up to 200,000 euros, the State will cover 85%. For investments of more than 200,000 euros, the State will cover:
- 70% of costs incurred by SMEs (small to medium-sized enterprises)
- 25% of costs incurred by other companies .
This support must comply with European regulations on State aid, which does not disturb free competition between Member States of the European Union. If support is provided that is over 200,000 euros or does not comply with these regulations, then the amount provided cannot be more than the damage caused by the fires. This amount will be calculated using the annex of this decree-law.
Which companies can be supported?
Companies directly affected by the fires of 15 October 2017 in the North and Central regions, wanting to invest in order to recover their production capacity.
Eligible companies can be from any economic area except agriculture and fisheries, whose recovery is backed by specific rules.
In order to apply for support, a company must:
- be legally established and authorized to carry out the activities and investments for which it requests support
- have the technical, physical and financial means, and the workers necessary for production
- have paid their taxes and Social Security contributions
- have an updated SME electronic certification (if it is an SME)
- declare that it is insured and that this information can be obtained from its provider
- ensure that it retains at least 85% of the job positions it provided before the fires, within six months of implementing the business support project
- have organized accounts
- declare that there were no overdue wages when the fires occurred
- demonstrate that it has not been condemned by the European Commission for having received some illegal support incompatible with the European market.
The companies eligible for support:
- cannot make investments for more than 18 months (or 24 months, in justified cases) counting from the date of the first expense
- must start investing within a maximum of 6 months after they have been informed that they will receive funding
- must have sources of assured funding and the be able to demonstrate that those sources are real.
Types of expenditure that can be financed
Investments made after 15 October 2017 can receive funds for:
- purchasing, transporting and installing machinery and equipment
- repairing machinery and equipment to increase their useful life
- purchasing computer equipment and software
- rolling stock directly related to the activity and essential to restore production capacity
- studies, diagnostics, audits, marketing plans and architectural and engineering services essential to the project, provided that they are contracted to people or companies not related to the company being supported
- construction, remodelling or adaptation works on essential facilities for getting back into production and are contracted to people or companies not related to the company being supported.
Investments in second-hand goods may also be financed, if duly justified, and if those assets:
- have not received public funding
- are not acquired from persons or companies linked to the company being supported or to suppliers who are also benefiting from support from the Support System for Restoring Competitiveness and Production Capacity.
The following expenses cannot be funded:
- purchase of buildings and land
- property transfers and usage rights of spaces
- interest payable while the investment is being made
- operating fund
- work for the company itself
- operating expenses of the supported company, running and maintenance costs including stocks
- activities related to the company's exports
- expenses with contracts made through intermediaries or consultants, where the amount to be paid is a percentage of the co-financed amount or the project expenses
- recoverable VAT, even if the company does not recover it.
How will applications for support be processed?
Applications for support can be submitted until 1 October 2018, through a form available on the websites of the Regional Coordination and Development Commissions (Comissões de Coordenação e Desenvolvimento Regional — CCDR).
Support requests are reviewed and approved by the CCDR. If a company's investment exceeds 235,000 euros, technical advice is required:
- from Turismo de Portugal (the national tourist office), for tourism projects
- from the Institute to Support Small and Medium Sized companies (IAPMEI), for the remaining projects.
Response to requests will be given within a maximum of 40 working days from the application submission.
If funding is approved, companies must sign the acceptance agreement within 30 working days from the date on which the decision is communicated. If they do not sign the acceptance agreement and there is no valid justification, they will lose the right to support.
How are the supports paid?
Payment can be made:
- in advance for up to 20% of the funding, with an uppper limit of 500,000 euros, paid when the acceptance agreement is signed
- in advance when expense invoices are presented. Proof of payment for that invoice will be required
- by reimbursement of the amount corresponding to the funding of the expenses paid by the company
- in a final payment to adjust the balance between the expenses paid by the company and the amounts received through advance or reimbursement.
What are its benefits?
This decree-law is intended to:
- minimize job losses and allow companies to restart their business as soon as possible
- contribute to the revitalization of areas that were affected by these fires, that in some territories already had weak economic activity and little capacity to attract investment.
When does it come into effect?
This decree-law comes into effect the day after being published but the changes it introduces take place from 15 October 2017.