How does state aid work?

What is state aid Ireland?

State aid is an advantage in any form conferred on a selective basis to undertakings by public authorities of the Member States. … the measure is likely to affect trade between Member States.

What is banned by the EU rules on state aid?

European Union law generally prohibits State aid to undertakings (Treaty on the Functioning of the European Union (TFEU), Article 107(1)). Public aid granted to an undertaking may give the company in question a selective financial advantage, which may distort competition and the functioning of the internal market.

What qualifies as de minimis state aid?

The definition of de minimis state aid is very broad and can include state grants, subsidies and other government funded financial incentives. However, any paperwork you receive for such payments will state clearly that it is de minimis state aid and therefore must be counted for these purposes.

Is a bounce back loan state aid?

Bounce Back Loan Scheme

Businesses from any sector can apply, except banks, insurers and reinsurers (but not insurance brokers), public-sector bodies, and state-funded primary and secondary schools.

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Why is state aid illegal?

Under European Union competition law the term has a legal meaning, being any measure that demonstrates any of the characteristics in Article 107 of Treaty on the Functioning of the European Union, in that if it distorts competition or the free market, it is classed by the European Union as being illegal state aid.

What is meant by State aid?

What is state aid? State aid is any advantage granted by public authorities through state resources on a selective basis to any organisations that could potentially distort competition and trade in the European Union (EU). The definition of state aid is very broad because ‘an advantage’ can take many forms.

What is State aid economics?

State Aid is a term that refers to forms of public assistance, using taxpayer-funded resources, given to undertakings on a discretionary basis, with the potential to distort competition and affect trade between member states of the European Union. In general, State aid is banned because of its anti-competitive effects.

What is de minimis aid Ireland?

De Minimis Aid is small amounts of State Aid given to an enterprise which cannot exceed €200,000 over any three fiscal years to any company irrespective of size or location. De Minimis Aid can come from any State body, agency or department. If a Company is part of a group then the €200,000 limit applies to the group.

Do state aid rules apply to charities?

State aid rules apply to organisations that receive public support for carrying out economic activity (‘undertakings’). Public support is provided to a wide range of third sector organisations including charities, social enterprises, co-operatives, voluntary organisations and community groups.

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What is general block exemption regulation?

The General Block Exemption Regulation (GBER) provides State aid cover for categories of aid which are exempt from the European Commission’s (EC) formal notification process.

What is general economic interest services?

A service of general economic interest (SGEI) is a service of an economic nature that public authorities identify as being of particular importance to citizens. They are not supplied by market forces alone, and may need public intervention. … Member states can monopolise some service delivery through state provision.

What is de minimis rules?


The de minimis rule states that if a discount is less than 0.25% of the face value for each full year from the date of purchase to maturity, then it is too small (that is, de minimis) to be considered a market discount for tax purposes.

Is Cbils classed as state aid?

Both the SME R&D tax relief scheme and the new Coronavirus Business Interruption Loan scheme (CBILS) are classified as Notified State Aid.

What is de minimis exemption?

The de minimis exemption allows covered facilities to disregard certain minimal concentrations of non-PBT chemicals in mixtures or trade name products.