Sweden: Extended government support available for companies, May-September 2021 (COVID-19)

European Commission approved Sweden's application to extend enhanced adjustment support

European Commission approved Sweden's application to extend enhanced adjustment support

The European Commission approved Sweden's application to extend enhanced adjustment support to certain companies that were economically affected by the coronavirus (COVID-19) pandemic, and on 28 October 2021, the government announced the extension. The changes are effective 1 November 2021.

The enhanced adjustment support is generally calculated the same as ordinary support, with the difference being that only the loss of turnover caused by restrictions may be used in the calculation.

The conditions for the enhanced support are essentially the same as for previous periods. The company must have lost more than 30% of its sales (when compared against the corresponding period in 2019). In addition, a loss of sales of at least 25% must be a consequence of specially designated restrictions. These restrictions are, for example, the ban on public gatherings and public events with a certain number of participants; the temporary ban on entry to Sweden; travel recommendations; and the restriction on the opening hours of restaurants.

Each month during May-September 2021 is considered to be a separate support period, and the size of the support is calculated as a proportion of the company's fixed costs. The percentage that is reimbursed is determined by how large a percentage of turnover loss is due to the designated restrictions. A company can receive a maximum of SEK 40 million in support per month, and any amount of previously received ordinary adjustment support for the period is then set off against the increased support.

Extended application period for the periods August 2020 - April 2021

For the enhanced adjustment support that applies for the periods August 2020 to April 2021, the application period under the prior rules expired 31 October 2021. The European Commission also approved extension of the application period for these periods until 30 December 2021, and Sweden’s government extended the application period to 30 December 2021.

The changes regarding the extended application period are effective 1 November 2021 (in connection with the changes to extend the support with the additional months).

Read a November 2021 report (Swedish) prepared by the KPMG member firm in Sweden

 

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