Source: Government of Sweden
The Government, the Centre Party and the Liberal Party today presented an additional measure to mitigate the impact of the virus outbreak on Swedish jobs and businesses. The measure involves reorientation support totalling SEK 39 billion.
The aim of the support is to make it possible for businesses to weather the acute crisis while making it easier for them to reorient and adapt their activities. This could apply to restaurants that need to sell more food via takeaway orders or taxi companies that can start making deliveries. It could also involve major manufacturing companies that reorient their production to products such as health care materials.
The size of the support will depend on how large a loss of turnover a business has had and may vary between 22.5 and 75 per cent of the business’s fixed costs excluding wage costs for March and April 2020.
To be eligible for the support, the business must have had a turnover of at least SEK 250 000 during the past financial year and a loss of turnover of at least 30 per cent. The loss of turnover is calculated on the basis of March and April 2020 compared with the same months last year.
Businesses and organisations that have F-tax will be eligible to apply for the support, which will be paid via the Swedish Tax Agency. The support will not be paid to businesses that are resident in a tax haven. It is proposed that the maximum amount be set at SEK 150 million per business.
The Ministry of Finance’s calculations show that almost 180 000 businesses may be entitled to the support. The impact on public finances is estimated to be SEK 39 billion in 2020.
While working to prepare the proposal, the Government will conduct a dialogue with the European Commission. The proposal may need to be approved by the Commission from a state aid perspective. The Government will therefore provide more information on the specific design of the support and how and where to apply at a later date.
The Government will submit the proposal in an additional amending budget and is working to ensure that it can enter into force on 1 July 2020. It is based on an agreement between the Swedish Social Democratic Party, the Centre Party, the Liberal Party and the Green Party.