What are subsidies granted?
For accounting and tax purposes, the subsidies and grants that a company may receive in the course of its business are income that must be recorded and declared. We distinguish between two types of subsidies:
They are aids that are granted by or for the exercise of the activity or to compensate expenses incurred by the company, such as: export aids, aid for hiring personnel, to compensate fuel expenses, advertising, attendance at trade fairs, interest compensation, etc.
These are aids granted for the acquisition of certain investments, such as aid for new technology equipment, acquisition of real estate, machinery, computer equipment, trademarks, patents, etc.
Visit the Resources to Serve Safely page for tips and tools to safely serve your community, and donate to LCIF to further Lions service from the safety of your home.
LCIF offers a wide variety of grants to help Lions serve their communities and the world. For decades, LCIF has contributed to Lions’ efforts in the areas of sight, disaster relief, youth and humanitarian causes. LCIF will help Lions increase their impact in these areas while expanding our reach in the areas of Lions global causes. Check out the following resources to help you with the LCIF grant application process.
To tell your story and measure our impact, it is critical that all grantees submit a report on the grant they receive. Below is a list of grant report forms to help you manage your LCIF grant.
Types of foreign trade subsidies
Subsidies are a mechanism that allows the State to intervene in economic activity since, depending on the aid it decides to grant, it can promote certain operations to the detriment of others.
By its nature, a subsidy may be repayable (which can be repaid) or non-repayable. Likewise, by its nature, it may be cash or non-cash. In addition, a distinction must be made between the purposes of a grant:
The European Union (EU) has four Structural Funds and a Cohesion Fund with which it channels its financial assistance to member states for the resolution of obstacles of an economic and social nature. These Structural Funds are, in particular:
In the case of the Structural Funds, their priority goal is to achieve a greater balance between the levels of development of the different regions and territories that make up the EU, and their application therefore falls within the scope of regional policy.
The Cohesion Fund, on the other hand, seeks to promote economic growth in the less developed member states of the Union, ensuring that such growth is compatible with the maintenance of their macroeconomic and budgetary balances.
Subsidies and public aid
When the investment includes used goods or products, it will be an essential requirement that their acquisition has taken place in establishments or through professionals dedicated to the sale of the type of product acquired or whose economic activity consists of the sale of used goods.
Only invoices for such investments dated and paid in the period between 3 months prior to the start of the activity and the date of presentation of the subsidy application will be accepted.
– Tangible fixed assets:- Commercial and industrial premises.- Capital goods, machinery, installations, tools and furniture.- Fitting out and refurbishment of real estate necessary for the exercise of the activity, except when this is the habitual residence (the first floor of dwellings are not included in this exception).- Equipment for information processes.- Industrial and commercial vehicles provided that their necessity for the performance of the activity is accredited.- Commercial and industrial premises.