How are the inflexible expenses defined?

The amount of the cost support depends on the other costs during the support period as reported by the company on the application. According to the Act on Cost Support, other costs during the support period refer to the inflexible operating costs and losses during the support period (1.6.2021–30.9.2021) justified by the company that are final and for which no cost support has previously been granted. The company must be able to distinguish the costs during the support period from other expenses it has declared on the application.

Inflexible costs cannot be adjusted in a way that corresponds with the volume of activities. In other words, even if the company does not have any sales, these expenses must be paid and it is not possible to adjust them according to decreased business activities unlike, for example, material and supplies costs or new investments.

The content of the inflexible costs that the amount of cost support is based on may be different for each company. Such costs include, but are not limited to, rental costs and other expenses concerning property used for business, equipment and item rentals, compensation for the right of access, licence fees, and necessary hired labour costs. Losses may include, for example, prepayments made by the company that have proved to be final.

The company must notify the State Treasury if the inflexible costs or losses indicated in the application later change, for example in the form of discounts received by the company or reductions in expenditure.
Below, you can find examples of expense types that can be considered inflexible costs and losses during the support period as referred to in the Act. Please note that the list is not exhaustive but only includes some examples. The eligibility of declared costs and losses is always decided on a company-specific basis when granting cost support.

Rental and other expenses on property used for business:
• Rental expenses related to the company’s property/premises (such as facility and property rent)
• Maintenance charge
• Electricity, water, gas, steam
• Security, facility surveillance or security systems
• Inflexible cleaning costs, waste management
• Property insurance premiums and property tax
• Statutory vehicle insurance premiums and taxes
• Road maintenance fees
• Interest expenses on a loan related to real estate
• Inflexible financial, accounting and audit costs
• Inflexible communications technology and phone plan expenses
• Maintenance costs for animals used in business
• Rental and bank guarantee costs

Equipment and item rentals

• Cost of leased vehicles
• Leased electronics (computers, monitors, phones, etc.)

License and access right fees
• Inflexible franchising fees
• Inflexible taxi hire company fees
• Royalty payments
• Computer software license fees
• Inflexible server costs (purchased from an external service provider)

Necessary hired labour cost

Necessary hired labour cost are considered to be e.g. hired labour costs that correspond to activities by the company’s own staff that are necessary for maintaining business or business readiness. Only necessary hired labour cost labour costs are eligible for the cost support. Upon request, the company must present a report on the necessity of using hired labour to maintain the company’s business.