Due to the situation with the COVID -19 - The Norwegian Government has announced immediate measures to help companies that are effected by the crisis. As the situation is developing and changing everyday the government will be monitoring the developments and further measures will be considered and introduced on an ongoing basis.
Below is an overview of the proposed measures as of 18th March 2020. Please do not hesitate to contact us if you should require assistance or further clarifications on how this will affect your company and your employees here in Norway.
Tax loss carry back
It is proposed that tax loss of up to NOK 30 million for the current year (2020) should be possible to carry back against profits in 2018 and 2019. The tax value of the tax loss, i.e. 22% of the tax loss, in 2020 will be paid-out to the companies in connection with the tax settlement for 2020 in October 2021.
Wealth tax – personal taxpayers
Personal taxpayers can apply for a one-year postponement of the wealth tax for the 2020 tax year.
Postponed payment deadlines
Payment of VAT due 15 April 2020. Postponed until June 10.
Payment of the second tax installment for companies due 15 April 2020. Postponed until September 1.
Payment of the first installment of the withholding tax for independent contractors due March 15. Postponed until May 1.
The deadline for the VAT payment due May 15. Postpone until 15. August.
Reduction of VAT rate
The VAT rate for passenger transport, letting of rooms by hotels or camping businesses etc., and commercial letting of holiday homes is temporary reduced from 12% to 6% with effect from 1 April 2020 to 31 October 2020.
LOAN AND GUARANTEE SCHEMES
Two state-backed loan and guarantee schemes of up to NOK 100 billion are introduced.
A new loan guarantee scheme will be established to support and enable banks to grant new loans to small and medium-sized enterprises.
In addition the Government will establish a state bond fund. The initiative is directed towards the larger, Norwegian enterprises active in the bond market.
AIR PASSENGER TAX AND AIRPORT CHARGE
Temporary removal of the air passenger tax from 1 January 2020 to 31 October 2020. The airlines that have made payments of air passenger tax to the authorities will receive refunds of the amounts they have paid.
Temporary removal of the airport charge.
The Norwegian Labour and Welfare Administration (NAV) will be stepping in to help companies and their employees. The government has made the following relief- proposals.
TEMPORARY LAY-OFFS / SUSPENSIONS
- Reduced the mandatory employer payment period from 15 to 2 days on termination, as well as removal of waiting days.
- Securing full pay to employees, up to 6G, i.e. approx. NOK 600 000 annually for a minimum of 20 days from termination, hence the state covers pay from days 3 to 20.
- Introduction of a scheme that guarantees people an income of at least 80% of full pay up to 3G (approx. NOK 300 000 annually) and 62.4% of full pay above 3G (approx. NOK 300 000 annually), and up to 6G (approx. NOK 600 000) after day 20 during the layoff period.
- The income limit for entitlement to unemployment benefit is reduced to 0.75 G (approx. NOK 75 000).
- Introduction of a scheme that ensures that apprentices who lose their apprenticeship in connection with the outbreak of corona have an income at the same level as the apprenticeship pay.
• The mandatory employer period for payment of sick-pay related to the corona pandemic is reduced from 16 days to 3 days.
• Self-employed persons and freelancers receive sick-pay from day 3 of their absence with the same coverage as in the current regulations.
Given the situation with closed daycares and schools the gov’t has proposed that the Care Allowance days be used by employees to cover the days that they are not able to work but have to devote to taking care of children that otherwise would be going to daycare or school.
• Number of days is increased to 20 days per parent from the previous 10 days.
• The mandatory employer period for payment of care allowance is reduced to 3 days from 10 days.
• A scheme is Introduced for self-employed persons and freelancers involving the payment by NAV of care allowance from day 4, with the same coverage as for sick-pay for self-employed persons.
SELF-EMPLOYED AND FREELANCERS
• Introduction of a temporary scheme for self-employed and freelancers who now lose all or part of their income base as a result of the corona pandemic. They will receive compensation with approximately 80% of the average of the last three years' income limited up to 6G (approx. NOK 600 000). The compensation is covered from the 17th day after the loss of income occurs.