The government has today presented a state compensation scheme with a framework of 10-20 billion kroner per month for companies that experience a significant decline in turnover.
The regulations for the compensation scheme have not yet been formulated and more details about the scheme will be announced on Friday, April 3, 2020.
According to the current proposal, the scheme should be designed as follows:
The scheme will apply to companies with a significant loss of turnover.
The aim is that companies that have to close down operations as a result of government decisions will receive higher compensation.
The scheme aims to cover a portion of the companies' fixed costs.
The compensation shall apply to the months in which the loss of income applies, and shall be related to infection control measures.
Compensation is planned for two months, with the possibility of extension.
The scheme shall not apply to the financial industry, oil activities, foreign shipping, power, water supply and municipal companies.
Companies must apply for support themselves via a new digital portal, and the basis for the application must be verifiable. Incorrectly paid support can be claimed back according to the tax and fee regulations.
Reduction of low VAT rate will not be retroactive, but will be reduced to 7%.
The Finance Committee asked the Government to conduct a new assessment of whether the reduction of the low VAT rate from 12% to 8% could be made retroactive from 1 January 2020.
The government believes that this is not compatible with the EEA Agreement's state aid rules and instead proposes that the low VAT rate be reduced to 7% for the period 1 April through 31 October 2020.
Income tax
Payment of the 2nd installment (advance tax for personal taxpayers) is postponed from May 15 to July 15, 2020.
However, electricity companies will not be able to defer payment of advance tax on ordinary income for the second quarter of 2019, which is due on April 15, 2020.
Other proposals and decisions
Proposal for a new interest subsidy fund of NOK 300 million to help companies with interest and repayment deferrals on existing or new innovation loans or regional risk loans
Grants to entrepreneurs and growth companies of NOK 2.5 billion, as well as grants to private innovation environments of NOK 50 million to maintain offerings for start-ups.
Increased loan limit for innovation loans to NOK 3 billion to partially finance investment projects. At the same time, an additional NOK 250 million is allocated for R&D activities in the business sector.
Investinor's investment capital is increased by NOK 1 billion to improve access to capital in an early phase.
The Securities Trading Act is proposed to be amended so that the offer price to minority shareholders in companies that are restructuring can be determined based on updated prices upon change of ownership.
The loan guarantee scheme for small and medium-sized enterprises (SMEs) has been adopted following approval from ESA. Banks can therefore use this scheme and work is continuing to expand the companies covered.
The Government Bond Fund for Large Companies has been adopted and Folketrygdfondet has today received a mandate from the Ministry of Finance. Folketrygdfondet is therefore ready to invest in bonds and 50% of the fund can be invested in loans issued by companies with a credit rating of BB+ or lower (but above CCC+).
