Find out the conditions that must be met in order for the enterprise to be entitled to grants through the compensation scheme by answering up to 14 questions.
This guide does not take into account the new requirements that apply concerning profit limitation during the year to which the grant period belongs or dividend limitation. These limitations do not apply to sole proprietorships.
Enterprises will be eligible for grants if they meet all of the following requirements:
In order to apply for grants, enterprises must have calculated a deficit during the grant period. However, you can still apply compensation for lost stock for December 2021 and January 2022 if you generated a profit.
Enterprises that are not liable to pay tax to Norway are not eligible for grants.
Enterprises that are separate tax entities must be domiciled in Norway for tax purposes. In the case of enterprises which are assessed as a partnership, the partners must be liable to pay tax to Norway on the income from the enterprise. A Norwegian branch of a foreign enterprise (NUF) will be covered by the scheme regarding the part of the business that is liable to pay tax to Norway.
Companies that are domiciled in Svalbard for tax purposes are also eligible to apply. Sole proprietorships are liable to pay tax to Svalbard if the owner is domiciled there for tax purposes. In the case of businesses assessed as a partnership, the partners must be domiciled in Svalbard for tax purposes. Enterprises that are liable to pay tax to Svalbard must follow Norwegian rules concerning bookkeeping, accounting and auditing.
Enterprises must have been registered in the Register of Business Enterprises by no later than 1 March 2020.
Sole proprietorships must have been registered in the Central Coordinating Register for Legal Entities by no later than 1 March 2020.
For enterprises that have undergone tax-free conversion in 2020, 2021 or 2022, the original enterprise must have been registered in the Register of Business Enterprises or the Central Register of Legal Entities by no later than 1 March 2020.
Only enterprises with employees may be eligible for grants. This means that enterprises must
- be registered in the State Register of Employers and Employees (the Aa-register) at the time the grant is awarded, and
- have at least one employee who was paid a salary for at least one calendar month during the period August 2019 and September 2020
However, there are two exceptions:
- sole proprietorships (ENK) where income from the enterprise is the owner’s main source of income
- general partnerships (ANS/DA) where income from the enterprise is the main source of income of at least one of the personal partners
Income from the enterprise is considered to be the main source of income when the income accounted for at least 50 percent of the partner’s or owner’s personal income either in 2019 or in January and February 2020.
- operates a lawful business
- has a bank account number linked to the banks’ joint account and address register
- is able to document its full ownership structure
- has paid taxes, duties and withholding tax which fell due before 29 February 2020
- must have submitted a VAT return with a submission deadline before the end of the grant period
- must have submitted requested documentation in connection with previous applications for compensation for enterprises with a large decrease in turnover and the compensation scheme for entry quarantine)
- must have submitted a tax return for wealth and income tax for 2019 and 2020
- must have submitted their most recent annual accounts where the deadline for submission has expired
The enterprise must not:
- be the subject of bankruptcy proceedings or voluntary or compulsory liquidation. The same applies to owners of sole proprietorships and partners in general partnerships
- have persons in senior roles who are subject to bankruptcy quarantine
For the period March 2021 to August 2021: The enterprise must have experienced a decrease in turnover of at least 30 percent during the grant period compared with the comparative period, primarily as a result of the coronavirus pandemic.
For the period September 2021 to October 2021: The enterprise must have experienced a decrease in turnover of at least 40 percent during the grant period compared with the comparative period, primarily as a result of the coronavirus pandemic.
Enterprises must have fixed, unavoidable costs in order to receive grants.
By ‘fixed, unavoidable costs’, we mean costs which cannot be reduced in the short term in line with the level of activity. This applies to:
- rental of commercial premises
- car leasing or rental
- lighting and heating
- refuse collection, water, sewerage, cleaning, etc.
- rental of equipment, fixtures and fittings, vehicles, etc.
- accounting and audit fees
- electronic communication, postage, etc.
- vehicle insurance and taxes
- deductible subscriptions
- insurance premiums
- interest expenses minus interest income
- animal care
- costs attributable to government-imposed supervision and control
- membership fees for regional tourist boards or destination marketing collaborations
- central fee for taxi depots
You can also apply for compensation for lost stock for the period December 2021 and January 2022. To apply for compensation for lost stock, you must have been ordered to stop serving or to close by the authorities.
Enterprises which operate entirely or partially within the following industries may not be eligible to receive grants:
- financial services industry
- oil and gas extraction companies under the petroleum tax regime
- companies engaged in the generation, transmission and distribution of electricity
- airlines with a Norwegian operating permit
Enterprises that were the transferor or transferee in a demerger registered as completed in the Register of Business Enterprises on or after 1 March 2020 are not covered by the grant scheme for any of the grant periods.
Section 1-3 second paragraph of the Regulation sets out a number of exceptions to this rule.
Enterprises that are considered to be medium or large cannot apply for support if they were experiencing financial difficulties before the coronavirus pandemic.
In order to apply for grants or retain any grant that has been awarded for the grant period, the enterprise must have made a maximum profit of NOK 50,000 during the financial year to which the grant period belongs. This does NOT apply to sole proprietorships.
- Concerning the grant periods November and December 2021: If the enterprise makes a profit in 2021, any deficit in 2020 may be deducted from the profit.
- For the January and February 2022 grant periods: If the enterprise makes a profit in 2022, any net deficits in 2020 and 2021 may be deducted from the profit.
Enterprises may not approve or make distributions from 28 January 2022 through to 31 December 2023 inclusive.
Any grants received from the grant period November 2021 onwards must be repaid before the enterprise approves or pays any dividends, distributions or other appropriations as set out in Section 3a-3, second paragraph of the Regulation. The requirement for repayment applies to resolutions or payments made from the date of entry into force of the Regulation (28 January 2022) through until 31 December 2023 inclusive. If a resolution or payment takes place after the rule enters into force, but before an application is submitted, the enterprise will not be eligible to apply for grants.
This provision does not apply to sole proprietorships.
Based on the answers you have given, it appears that the enterprise may be entitled to grants provided it is not affected by the provisions concerning profit limitation or dividend limitation. These limitations do not apply to sole proprietorships.
Groups of companies are covered by separate rules.
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