Government compensates SMBs that have 30% or more in revenue loss due to COVID-19

In a press conference on Thursday 2nd April the government came back to companies with a relief package that can be applied for by 17th of April.

SMBs that have had a considerable reduction in revenue or have been directly affected by the lockdown in the form of temporary termination of services will have the possibilities to apply for a compensation that will go towards covering their fixed costs. The compensation will cover costs like: loans, rent, leasing, accounting costs amongst other things. The package will apply to all SMBs that are tax liable to Norway.

The package will be valid for a three (3) month period: April- May and June.

The companies that can apply for the relief fund are divided into two categories:

1. those that have had to close their services due to sanctions.
2. those that have had a reduction in revenue due to the sanctions.

The compensation amount will be paid on arrears basis and will be based on the revenue of the previous month. So for March the payment will come in April.

For the month of March the compensation will be valid for SMBs with a minimum 20% reduction in revenue since the COVID-19 sanctions were not introduced in Norway before 12th March.

For April and May the compensation will be valid for SMBs with 30% or more in revenue reductions.

The Norwegian tax administration will be responsible for the administration of the policy. The application will be made available online from the 17th of April. More information on the portal and the details of how to apply online will follow.