A business must have a turnover decline of 30 percent or more (20 percent or more in March) from the same month last year to be eligible. The sale of financial assets should not be included.
The scheme applies to all registered companies subject to tax in Norway. It is proposed that the program should not apply to:
financial industry (improvement is based on financial tax)
production, transmission and distribution of electricity and water
foreign shipping - transport of goods
oil and gas extraction (limited to those subject to the oil tax system)
private kindergartens with their own support system
airlines covered by their own support system
enterprises without employees (except for ENK where activity is the main source of income)
enterprises without service activities
companies that are undergoing bankruptcy proceedings or are applying for bankruptcy
Then there's something a little more complicated: How to calculate who should be helped:
Here is the crisis package: Compensation is calculated according to the following formula per company:
1 Compensation = Percentage turnover × (unavoidable tax deductible) × correction factor.
The correction factor is:
0,9 for companies closed by the state 0,8 for other companies The deduction is fixed at 0 NOK for companies closed by the state 10 000 NOK per month for other companies.
Then the payment threshold from the program is 5000 NOK . Estimated compensation amounts below this limit will not be paid out.
The payout ceiling is 30 mln NOK per legal entity per month.
Controls in aid companies
Several fraud sampling checks will be carried out in the automated processing procedure. The information that the applicant registers in the system will, inter alia, be checked against historical and other information about the company as well as other information available in the system. The application will be rejected or will go into manual processing if the spot checks show serious deviations.
Controls that, for example, detect activity and employees in the company, and whether it is an intentional situation, will help to detect applications on the wrong basis or fraudulent companies. Please be advised that any applicant for the program must be able to document the figures at a later date with an auditor or an authorized accountant certifying them. Access change is also planned. In addition, a check on the requirements for reimbursement and sanctions for the detection of fraud will be established. The penalties are clearly stated in the application portal.
Here is the crisis package. Immediate support
If the company meets the other payment criteria, payment will be made automatically. The applicant must confirm that the information is correct and that he knows the terms of the incorrect information. The applicant confirms that they have read the rules of the program and that they understand criminal liability by providing incorrect information.
ESA approved
The program must be approved by ESA . The work is based on the fact that the scheme is justified by the Covid-19 outbreak as the only triggering factor, that the aid is compensation for income foregone and that the aid intensity is based on objective criteria for the scheme to be automatically approved. The scheme will then not interfere with the SME Loan Guarantee Scheme, ie Companies can benefit from both. The NFD is in contact with the ESA.
Regulation
In a very short time, the government prepared a large-scale plan. The government is keen to introduce the scheme quickly, to keep it as simple as possible and so that the first payment can be made as soon as possible.
This means that there were limited opportunities to address various issues that would normally be highlighted. Therefore, it may be necessary to adjust the model, limits and controls. For example, his questions about the model are a strong enough incentive to conduct operations during the coronavirus crisis. Many companies have significantly reduced their use of labor, but not 100 percent, to avoid having to shut down the company completely. This is usually the case for companies with a large drop in turnover (80-100%) that still need some staff. The ministry will consider if and if possible how this could be taken into account in the April 2020 model.
Source VG
