Changes to the compensation scheme

Here you can find an overview of important changes to the compensation scheme from and including March 2021. In addition, from 9 June you can also apply for  compensation for lost stock for the grant periods of November – December 2020 and January – February 2021.

Several of the changes are linked to the change in the basis for grant periods pursuant to state aid law from and including March 2021.

Small, medium and large enterprises

Differentiated rules have been introduced based on the EU’s definition of small, medium and large enterprises.  

If the applicant is part of a corporate group, the calculation shall be made at group level. Ownership of between 25% and 50% in the applicant or that the applicant has in other enterprises must be included proportionately in the calculation.

 The definition is based on the following three criteria from the most recent annual accounts:

  • number of full-time equivalents
  • annual turnover
  • total annual balance sheet

Loss during the grant period

A requirement has been introduced whereby the enterprise must have made a loss during the grant period in order to apply for compensation. The grant cannot exceed the enterprise’s calculated loss, multiplied by 0.9 for small enterprises and 0.7 for medium and large enterprises. However, enterprises that did not make a loss during the grant period may still apply for compensation for lost stock if they otherwise meet the requirements.

Enterprises experiencing difficulties

Medium and large enterprises that were experiencing financial difficulties before the coronavirus pandemic cannot apply for support.

Compensation for lost stock (from November 2020 until and including April 2021)

Enterprises that were ordered by the authorities to fully suspend serving or close due to infection control concerns, can apply for coverage of costs of lost stock for stock that expired or deteriorated and thus could not be sold. If grants have been approved for the periods of November – December 2020 and January – February 2021, the enterprise must submit a new application for these periods in order to receive compensation for lost stock.

New upper limits for grants

For grant periods before September 2021, the following applies: Grants calculated as amounting to up to NOK 40 million per grant period (two months) will be paid out in full. In the case of calculated grants exceeding NOK 40 million per grant period, the amount above NOK 40 million will be reduced by a factor of 0.5.

For grant periods from September 2021, the following applies: Grants calculated as amounting to up to NOK 10 million per grant period (two months) will be paid out in full. In the case of calculated grants exceeding NOK 10 million per grant period, the amount above NOK 20 million will be reduced by a factor of 0.5.

The total grant for all grant periods from and including March 2021 cannot exceed NOK 100 million.

Submission of Tax Return for 2019

The practice regarding failure to submit the tax return for 2019 in a timely fashion has been changed. This means that those who has received a new tax settlement after the Tax Administration made an assessment decision can now apply for compensation if the new tax settlement is founded on a submitted tax return. This change is applied retroactively.