Decree-Law No. 21 of 21 March 2022: Key Highlights

On 21 March 2022, the so-called “Ukraine Decree” was published in the Official Gazette, introducing a series of support measures for businesses.

The decree provides for:

• A fuel bonus, under which fuel vouchers granted to employees, up to a value of €200 per employee, are exempt from taxable income;
• The introduction of a transferable tax credit equal to 12% of expenditure incurred for the purchase of electricity used during the second quarter of 2022 by companies that experienced an increase in electricity costs per kWh exceeding 30%;
• A similar tax credit equal to 20% for the purchase of natural gas by companies other than energy-intensive users, provided that the average gas price increased by more than 30% compared with the corresponding quarter of 2019;
• The possibility for end-user businesses to pay electricity and natural gas bills relating to May and June 2022 in instalments;
• A temporary wage supplementation scheme for employers facing particular economic difficulties who are no longer eligible for ordinary wage support measures. The scheme is available within a budget limit of €150 million for 2022 and may be used until 31 December 2022. The measure also applies to businesses operating in the tourism sector.

In addition, the existing social security contribution exemption for the hiring of employees on permanent contracts from companies involved in business crisis management procedures has been extended to workers dismissed due to workforce reductions during the previous six months and to employees working in business units subject to transfer.

For further information, please contact Andrea Noris at a.noris@bmv-ltf.com.