After calculating the grant and any compensation for lost stock, check whether the grant must be reduced according to one of the limitation rules.
The enterprise must have recorded a deficit during the grant period
Grants are only awarded to enterprises or corporate groups that have a calculated deficit during the grant period. The grant cannot exceed the deficit calculated by the enterprise or group for the grant period.
- multiplied by 0.9 for small enterprises, and
- multiplied by 0.7 for medium and large enterprises.
This limitation rule does not apply to compensation for lost stock. This means that an enterprise that generated a profit during the grant period can apply for compensation for lost stock.
The grant and compensation for lost stock cannot exceed the decrease in turnover in Norwegian krone
Calculated grants and compensation for lost stock cannot exceed the decrease in turnover measured in NOK.
The reduction in sales turnover equals to the difference between the revenue in the grant period compared with the revenue in the comparative period.
Enterprises will not be awarded a larger grant than is permitted under this rule.
Reduction in grants for enterprises which recorded a deficit during the previous financial year
This limitation rule may result in a reduction in the grant paid to an enterprise which recorded a deficit in the last financial year ending before 1 March 2020. In most cases this will be the accounting year of 2019.
The limitation rule means that enterprises cannot be awarded a grant based on a greater share of fixed costs than the enterprise itself would be able to cover during a normal period without recording a deficit.
However, this limitation rule will not apply if information confirmed by an auditor or authorised accountant can be presented to verify that the enterprise generated a positive ordinary result before tax in January and February 2020. In this case, only the first limitation rule will apply.
If the enterprise still recorded a deficit in January and February 2020, but the average deficit was less than the average monthly deficit in 2019, the lower of the two deficits (i.e. the higher result) of the two may be used to determine the maximum grant.
Maximum limit under the previous rule
Enterprises may not receive a larger grant than a maximum limit calculated using the following formula:
Max. grant = Decrease in turnover as a percentage* (fixed, unavoidable costs+ordinary result before tax)
The decrease in turnover expressed as a percentage and fixed, unavoidable costs will be the same figures that form the basis for calculating the grant according to the normal formula.
The ordinary result before tax for 2019 multiplied by 2 (number of months in the grant period) divided by 12 months. For enterprises with a different financial year ending during the period January – February 2020, the ordinary result before tax for this financial year must be used as a basis. In the case of enterprises with a non-standard financial year ending on 30 April or 30 June, for example, the financial year ending on 30 April or 30 June 2019 respectively must be used as a basis, as this is the most recent financial year ending before 1 March 2020.
If the enterprise was established in 2019, with the consequence that the financial year does not cover a full 12 months, the result must be divided by the number of months that the financial year includes.
Example reduction of a grant under the second limitation rule
|Calculated grant according to the normal calculation formula|
|a||Fixed costs||200 000|
Decrease in turnover
|Calculated grant (a * b * c)||119 000|
|Maximum grant under the second limitation rule|
– Result deficit
|b||Decrease in turnover||70%|
|Maximum grant (a*b)||70 000|
If the result for January/February 2020 has improved
Alternatively, if the company recorded a deficit in 2019, you can use the ordinary result before tax for January and February 2020, if this result is higher (i.e. a smaller deficit or a positive result).
Calculated grants and compensation for lost stock amounting to less than NOK 5,000 per grant period will not be awarded. If the calculated grant and compensation for lost stock amounts to NOK 5,000 or more per grant period, the entire calculated grant will be paid out.
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. The total grant for all grant periods from and including March 2021 cannot exceed NOK 100 million. Compensation for lost stock is not included in the maximum grant limit for the grant periods from March 2021 inclusive to the end of the year.