Background information

On 25 March 2021, the procedure for allocation and administration of funds for the measure “Grants for the self-employed affected by COVID-19” (the Procedure), as approved by Resolution No 167 of the Government of the Republic of Lithuania, came into effect providing for the possibility for the self-employed to receive lump-sum subsidies. The aim is to support self-employed persons (who carry out activities on the basis of individual activity certificates or business certificates) who have been affected by restrictions imposed in Lithuania during the COVID-19 pandemic.

Content of measure

The Procedure provides for the possibility of receiving such grants for persons who carried out activities under individual economic activity certificates and/or business certificates if such activities are in the list of activities restricted by COVID-19:

• if the person carried out activities under an individual activity certificate, the grant will be 100% of the amount of personal income tax due on taxable income from individual activities in 2019, but not less than €100 and not more than €10,926.
• if the person carried out activities under a business certificate, the grant will be 100% of the price of the business certificate(s) (income tax) paid for the periods of activity in 2019, but not less than €100 and not more than €10,926.
• if the person started individual economic activities only in 2020 and continued them for at least 90 calendar days uninterruptedly or intermittently, the grant will be €100.
• if the person carried out activities both under an individual economic activity certificate and a business certificate, or changed from one form of activity to another, income tax calculated for both forms of activity will be added up, but the grant shall not exceed €10,926.

Other grant eligibility criteria:

• taxable income from non-individual activities in 2019 does not exceed €6,660; total taxable income earned in 2020 does not exceed €21,852;
• the person has filed income tax returns for 2019 and 2020 (where applicable).

The maximum compensation per applicant is 70% of the fixed costs incurred between 1 November 2020 and 30 April 2021, up to the maximum amount of €20,000.

Self-employed persons should submit grant applications to the State Tax Inspectorate (STI). The applications are accepted from 29 March 2021 to 1 June 2021.

Use of measure

According to the State Tax Inspectorate (STI), on 11 February 2021, there were a total of 101,749 people engaged in individual activities that are included in the lists of activities affected by COVID-19.

A total of €12 million has been paid from the state budget of the Republic of Lithuania for the implementation of the measure.

Target groups

Workers	Businesses	Citizens
Self-employed	Solo-self-employed	Does not apply to citizens

Actors and funding

Actors	Funding
National government Social partners jointly Public support service providers	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners consulted only ad hoc, the tripartite meeting was not held.

Views and reactions

Information is not available.

Sources

• 14 February 2021: Part of the self-employed left on the margin: feeling invisible and unsupported, they have to sell their property (Dalis savarankiškai dirbančiųjų liko užribyje: negaudami paramos jaučiasi nematomais, parduoda turtą) (www.delfi.lt)
• 24 March 2021: Procedure for allocation and administration of funds for the measure “Grants for the self-employed affected by COVID-19” (Priemonės „Subsidijos nuo COVID-19 nukentėjusiems individualią veiklą vykdantiems asmenims“ lėšų skyrimo ir administravimo tvarkos aprašas) (e-seimas.lrs.lt)
• 03 November 2021: Resolution No 167 of the Government of the Republic of Lithuania (3 November 2021) (www.e-tar.lt)
• 15 November 2021: Call for applications under the measure “Grants for the self-employed affected by COVID-19" (eimin.lrv.lt)