Updated 01.04.20: An overview over the Norwegian crisis and funding actions as a result of the COVID-19 outbreak.
An overview over crisis and funding actions as a result of the COVID-19 outbreak.
Name/Type of support |
Status | Description |
Directed to | Procedure |
Limitations and requirements | Amounts (up to) |
Social security contribution – Rate reduction | Proposed |
To reduce costs and improve cash flow immediately, social security contribution rate will be reduced with 4 percent of the total contribution rate of 14.1% for May and June. |
All employers |
No requirement for application announced. |
Not specified. |
Not specified. |
Social security contribution – Deferred of payment | Proposed |
Payment of social security contribution originally due 15 May is deferred until 15. august 2020. |
All employers |
No requirement for application announced. |
Not specified. |
Not specified. |
CIT – Deferred of advance tax payment for companies | Proposed |
Payment of the second instalment of advance tax payment for companies, originally due 15 April is deferred until 1 September 2020. |
Companies |
No requirement for application announced. |
Not specified. |
Not specified. |
CIT – Loss carry back | Proposed |
Loss-making companies in 2020 could, subject to certain conditions, carry back losses for that year against the two previous years’ taxable profits. |
All companies |
The tax value (22%)of the allowed carry back will be automatically paid out as part of the ordinary tax statement in 2021. |
The carryback requires a loss in 2020, and taxable profits in either 2018 or 2019. |
Losses up to NOK 30 million, i.e. up to NOK 6.6 million in tax value |
CIT – Deferred payment of advance tax for certain businesses | Proposed |
An extension of time for sole traders and certain other business owners to make the first instalment of advance payment of tax for 2020 would be provided to 1 May 2020 (from 15 March 2020). |
|
There is no need to apply for an extension. |
Applies for traders and certain other business owners |
Not specified. |
CIT – Reduction of advance tax payments by way of ordinary means (not a COVID-19 measure) | Existing |
Businesses that expects significantly lower profits comparing 2020 to previous years may apply for reducing the amount of advance payment of tax possibly to nil. |
Companies |
Application required by submitting form RF-1097 in Altinn (internet portal).
|
Application must be submitted well in advance of the due date for the final instalment, i.e. well in advance of 15 April 2020. |
Not applicable |
Wealth tax – Deferred payment | Approved |
Owners of loss-making companies in 2020 could postpone payments of net wealth tax in respect of the value of the companies. Advanced payments of wealth tax could also be reduced accordingly. |
Individual business owners |
Deferral must be claimed before at 31 May 2020 at the latest. |
The proposal will apply to business assets for the tax year 2020 for personal taxpayers who have an accountable business with a negative annual result in 2020. . |
Net wealth tax must be at least NOK 30 000 to claim post-ponement |
VAT – Temporary rate reductions | Approved |
The VAT “lower rate” is temporarily reduced from 12% to 6% in the period from 1. April until 31 October 2020. The reduced rate scheme applies to passenger transport, accommodation, public broadcasting as well as access to cinema, sporting events, amusement parks and adventure centers |
Relevant businesses registered for VAT |
No requirement for application announced. |
Applicable to certain businesses |
No limitation |
MVA – Deferred of first term 2020 payment | Approved |
Payment of VAT for the first period 2020 (Jan-Feb, with original due date 14 April) will be deferred until 10 Jun 2020 |
Relevant businesses registered for VAT |
No requirement for application announced.
|
Not specified
|
Not specified |
Government Funding – State guarantee for small and medium businesses | Approved
Approved by ESA |
The government has created a scheme that entails that the state covers a proportion of the fixed costs for companies that have a significant decrease in turnover due to the outbreak of viruses. |
Small and medium businesses |
Application through banks |
The programme allows companies to take up loans of up to NOK 50 million, with a term of up to three years. |
NOK 50 million. |
Government Funding – Government Bond Fund | Approved |
The government has reinstated the Government Bond Fund, offering credit bond purchases of up to NOK 50 billion directed at larger companies across all industries. |
Larger Norwegian businesses |
The fund will be managed by Folketrydfondet, a State owned asset manager responsible for the management of the Government Pension Fund Norway. |
A substantial share of the fund capital will be invested in bonds issued by non-financial companies. There will be limits to how much of the fund capital can be invested in bonds issued by one single issuer. High yield bonds will make up a significant part of the investments. |
Up to NOK 50 billion |
Government Funding – Coverage of fixed costs | Proposed |
The government proposes to create a scheme that entails that the state covers a proportion of the fixed costs for companies that have a significant decrease in turnover due to the outbreak of viruses. |
All companies affected by the outbreak of Covid-19 |
Application through banks |
Not decided |
Not decided |
Financial activity tax – Deferred payment | Approved | The deadline for payment of the extra payroll tax for March and April has been deferred to 15 August (originally due on 15 May). The deadline for the second instalment of tax on profits from financial activity has been tax deferred to 1 September (originally due on 15 April). |
Certain business within the financial sector |
No requirement for application announced. |
Only applies to companies subject to financial activity tax | Not specified
|
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