Transition support August–October 2020

The government proposes that the transition support be extended by three months. It will thus be expanded to include August–October 2020. To receive the support, a revenue loss of at least 50% is required during these months. The support for August–October will be 70% of certain fixed costs of the company, however maximum 30 million SEK. The transition support will thus amount to the following levels:

The extension of the transition support for the months August to December will be divided into two periods where August, September and October constitute one period and November and December constitute another period.

During the period August-October, support can be provided to companies that have had a revenue loss of at least 40 percent. For the period November-December, the loss must have been at least 30 percent. The levels of revenue loss are lower compared to when the government announced that the extensions would be introduced. This means that more companies will be able to use the support.

The support is provided as before as a proportion of the company’s fixed costs, depending on the company’s percentage revenue loss. As a result of adaptations to the European Commission’s temporary state aid guidelines for corona-related support, support may be provided with a maximum of 70 percent of the fixed costs. However, exceptions are made for small companies that receive a maximum of 75 percent of their fixed costs compensated in August, September and October as well as up to 90 percent in November and December.

The Period January-February 2021

On December 19, the government announced that the transition support is extended further with the period January-February 2021. For support to be granted for this period, the company must have had a revenue loss of more than 30 percent compared to the same months in 2019. That the loss should be calculated compared to 2019 is linked to the guidelines the European Commission has presented for this type of state support.

The support is provided as before as a proportion of the company’s fixed costs, depending on the company’s percentage revenue loss. Support is provided with a maximum of 70 percent of the fixed costs. However, exceptions are made for small companies that receive up to 90 percent of their fixed costs compensated.

Revenue Support for Sole Proprietors

The recently decided revenue support for sole proprietors is also extended by three months, i.e. with August–October 2020. The requirement to receive the support is a revenue loss of at least 50% during these months. The support for August–October will be 70% of the revenue loss, however maximum 72,000 SEK. The support can be used by sole proprietors whose revenue exceeded 200,000 SEK in 2019.

Extended Deferral of Tax Payments

In the spring, opportunities were introduced to receive deferral for up to one year with the payment of at most three months’ VAT, employer contributions and preliminary tax deductions. It is also possible to receive deferral with annual VAT that is reported from December 27, 2019 to January 17, 2021.

The government now proposes that the deferral period should be extended by an additional year for all those who have been granted deferral according to the new regulations. An extension can be granted upon application unless special circumstances argue against it.

Source: Björn Lundén

The government