Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LT-2020-20/1022 – measures in Lithuania
|Country||Lithuania , applies nationwide|
|Time period||Temporary, 13 May 2020 – 01 December 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Inga Blaziene (Lithuanian Social Research Centre)|
|Measure added||27 July 2020 (updated 09 October 2020)|
On 11 May 2020, the Government of the Republic of Lithuania passed Resolution No. 474, adopting the Procedure for distribution and use of a Subsidy Facility for Microenterprises (the Procedure) which comes as part of the 'Economic Stimulus and Coronavirus (COVID-19) Mitigation Action Plan' effective in Lithuania since 13 May 2020. According to the Procedure, the microenterprises most affected by the negative effects of COVID-19 may receive a non-refundable subsidy.
The purpose of this measure is to help microenterprises to provide liquidity in the short term through the use of the subsidy for working capital (payment of wages, purchase of raw materials, etc.).
According to the Procedure, the eligible microenterprises shall receive a call to submit a subsidy application from the State Tax Inspectorate (STI); the enterprise itself does not have to apply anywhere. The call sent contains a link to the subsidy application form and where to apply for the subsidy. The application is considered a financial commitment for granting the subsidy.
The call to submit subsidy applications shall be sent to enterprises that meet the criteria below:
The subsidy will be calculated on the basis of the personal income tax (PIT) paid by the enterprise in 2019:
Enterprises are free to apply at any time until the total amount under this facility (€100 million) is allocated, but no later than by 1 December 2020. The facility is implemented by the STI and Lithuanian Business Support Agency. Payments are carried out by the National Centre of General Functions. The calls shall be sent to enterprises in stages.
The STI has drawn up a list of 34 thousand microenterprises to be called personally to submit subsidy applications.
Up to €100 million has been allocated from the state budget for the implementation of the measure.
|Does not apply to workers||
One person or microenterprises
||Does not apply to citizens|
Social partners jointly
Public support service providers
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners consulted only ad hoc, tripartite meeting was not held.
No information available.
Eurofound (2020), Subsidies for microenterprises, measure LT-2020-20/1022 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2020-20_1022.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.