Objective: The purpose of grants for the creation of new jobs is to help companies interested in growing and expanding to create new jobs. Grants are provided for the acquisition of the necessary fixed assets.
Target group: businesses and self-employed persons that meet the following conditions are eligible for the grant:
- the applicant is located in Tallinn and the investments made with the help of the grant are directed towards promoting small business in Tallinn; according to the annual report submitted to the Commercial Register for the last two years, the applicant has 2 to 250 full-time employees;
- at least 51% of the shareholders of the applicant are natural persons;
- the applicant has been in operation for at least 24 months and submitted at least two annual reports to the Commercial Register;
- the applicant’s average added value per employee during the last two financial years is at least 50% of the average added value per employee in the particular field of activity (based on the comparison with the Statistics Estonia database); the applicant has no state or local tax arrears or other debt towards the City of Tallinn, except for staggered tax arrears. If the tax arrears have been staggered, the payments must have been made on schedule. The applicant must have properly complied with the requirement for submitting tax declarations as prescribed in the Taxation Act;
- no liquidation, reorganisation or bankruptcy proceedings have been initiated against the applicant;
- during the previous 12 months before submitting the application, the applicant has not dismissed any full-time employees or reduced their working hours;
- the applicant has not received a grant for the creation of new jobs during the previous 12 months.
The grant that can be applied only to acquire fixed assets (machinery and equipment or other listed assets) and to cover the relevant direct costs that are directly related to the creation of new jobs, whereas the acquisition cost of the single item of fixed assets must be at least EUR 150 and service life at least 3 years.
In addition to the aforementioned, the following costs are also eligible:
- transport and installation costs related to the acquisition of the tangible fixed assets;
- costs related to the acquisition of application software and the costs related to the programming and testing of application software, if the applicant is forecasting the receipt of sales revenues from the sale of licenses for use of the application software being developed or the content service. In the case of the development of application software, the applicant must retain ownership of the intellectual property;
- costs related to the creation and/or development of an integrated solution (design solution and technical solution) for a website with information in at least two languages.
Expenditures related to the acquisition of assets and/or expenditures related to such acquisitions made by businesses or self-employed persons are eligible, if these were acquired from a business or self-employed person, whose area of activity based on at least the last the annual report submitted to the Commercial Register has been the production or sale of the corresponding assets. The area of activity shall be determined based on the annual report submitted to the Commercial Register. Costs related to transactions with associated persons in the context of the Income Tax Act are not eligible. The following significant costs are ineligible:
- costs related to the acquisition of current assets, real estate or cars;
- costs related to the acquisition, construction and renovation of buildings; costs related to the acquisition of home electronics, except the costs of acquiring home electronics that is necessary for the performance of tasks at the job to be created;
- acquisition costs for office equipment and furniture, except the acquisition of the computers and furniture that are required for creating new jobs, producing products or providing the service;
- personnel costs;
- VAT, except if the applicant is not liable to VAT.
Grant limits and requirements related to the number of new jobs:
up to EUR 5000, at least 2 new jobs
up to EUR 10,000, at least 3 new jobs
The new, full-time jobs must be created within at least 6 months of the signing of the contract between the grant recipient and the Tallinn Enterprise Department, and the jobs must be maintained for at least 3 years.
Maximum amount of grant is EUR 10,000.
The self-financed part must be at least 50% of the total project volume.
Grants cannot be applied for by entrepreneurs operating in the following fields of activity:
- agriculture, forestry and fishing;
- manufacture of tobacco products and beverages, except manufacture of non-alcoholic beverages, mineral water and other bottled drinks;
- supply of electrical power, gas, steam and air-conditioned air;
- water and sewerage;
- wholesale and retail trade, except for the maintenance and repair of motor vehicles and motorcycles;
- transport and warehousing;
- financial and insurance activities;
- real estate activities;
- legal actions and accounting, headquarters activities and management consulting, advertising (including network marketing) and market research;
- leasing and operational leasing;
- gambling and betting activities.
The processing period for the grant applications is up to 30 days.
What happens after submitting the application?
After submitting the application through the Tallinn self-service environment for Grants to Non-profit Activities, the application will be registered. As soon as the applicant has received a message from the Enterprise Department that the application has been registered, they may being the process of implementing the project (however, it is important to keep in mind that costs incurred or new employment contracts concluded before the registration of the application are not accepted). The employment contracts for new jobs are eligible after conclusion of the grant contract).
Processing of applications
The first stage of processing is a conformity check of the application (eligibility of expenditures, compliance of the application and applicant to the conditions), in the course of which shortcomings may be detected (such as - the applicant does not comply with the procedure, the costs are not eligible, the applicant cannot certify existence of two full-time employees, the applicant has tax arrears, etc.). The applicant may be given an additional term for eliminating the shortcomings and obtaining further information.
If the application does not conform to the conditions of the regulation, the applicant is unable to eliminate the shortcomings or does not present the information in time, a decision is made to reject the application.
Assessment of applications
In the course of processing the application, the enterprise consultant of the Enterprise Department shall pay a visit to the applicant (if necessary), to check the accuracy of data presented in the application. If the application corresponds to the requirements, the head of the Enterprise Department shall make a decision on satisfying the application and issues the applicant the decree (administrative decision).
The Tallinn Enterprise Department shall make the decision on satisfying or rejecting the application within 30 days as of the day the application is submitted/registered. The administrative decision is sent to the applicant e-mail at the address specified in the application.
Conclusion of contract
If the application is satisfied, the applicant shall have 2 months as of the decision on satisfaction (decree of the head of Enterprise Department) to conclude the grant contract for creating new jobs with the Enterprise Department.
Carrying out self-financing
Self-financing must be carried out at least within one (1) month as of the conclusion of the contract. The grant is paid out within 21 days after all expense receipts certifying the payment of self-financing have been submitted to the Enterprise Department. When planning the project volume, it must be considered that if the applicant is liable to VAT, all acquisition costs provided in the project are calculated net of VAT and if the applicant is not liable to VAT, inclusive of VAT.
Completing the project
Upon completion of the project, the grant recipient shall submit the final report of the project through the Tallinn self-service environment for Grants to Non-profit Activities the latest within six (6) months as of conclusion of the contract, which must include the following documents:
- copies of employment certificates planned and concluded within the framework of the project (for the purpose of the Employment Contracts Act, the new employment contracts must be concluded for full-time employment);
- expense receipts (invoices and payment orders), certifying the use of the entire grant
If an appropriate final report is not submitted, the Enterprise Department has the right to reclaim the grant.
After the end of the project
After the project has been completed, the Enterprise Department performs follow-up control within three (3) years. The applicant shall have to repay the grant, if the grant has not been used for its intended purpose, the applicant goes bankrupt, transfers, encumbers or pledges - without the written permission of the Enterprise Department - the acquired fixed assets, or transfers the company serving as the basis for implementing the project.
The application (later also the final report) shall be submitted through the Tallinn self-service environment for Grants to Non-profit Activities. (User instructions for the self-service environment)
The additional documents requested on the application form shall be provided together with the application:
- CV of each management board member of self-employed person.
- Price proposals for all acquisitions planned within the project
- Copies of operating permits and licenses (if necessary for operating in the field)
- Documents (such as rental contract) certifying the ownership or right of use of a construction or land necessary for taking the action
- Letter of authorisation, if the representative is acting under an authorisation
- Certificate from the Tax and Customs Board, reflecting the number of persons who have received TSD payments with code 10 (previously 01) and 33 (previously 13) declared by the company within the last 12 months