How much can the enterprise receive?

Read on to find out how the scheme works and the amount the enterprise may receive as a subsidy.

In order for the enterprise to receive a subsidy, it must meet specific criteria. Amongst other things, the enterprise must have had a drop in revenue as a result of the virus outbreak. The subsidy amount is calculated based on a share or the enterprise’s fixed unavoidable costs.

In order for the Compensation Scheme to function as intended, some adjustments have been made to the rules from the time the scheme took effect for the month of March and up until today.

The subsidy amount an enterprise may receive depends on the extent of the enterprise’s drop in revenue as a result of the virus outbreak.

For March, April and May, there were separate calculation rules for enterprises that were ordered to close by the state, for example hair salons and physical therapists.

Use these amounts for each month

For the month for which the enterprise is applying for a subsidy in 2020: enter income from the sale of goods that have been supplied and services that have been rendered, even though the goods and services are not invoiced. The sale of goods and services must be within industries that are covered by the scheme in Norway.

If the enterprise is receiving benefits in the form of subsidies, support or other payments for the same month for which the enterprise has applied for a subsidy under this scheme, include these benefits in the application. This could be for example benefits from NAV to compensate for loss of income, including the compensation scheme for self-employed persons and freelancers. The same applies to benefits from other subsidy schemes or insurance schemes, for example from the Norwegian Gaming Authority. If these kinds of benefits are only received after the subsidy from the Compensation Scheme has been paid, the beneficiary is obliged to report this to the Tax Administration. In this case, you must send a new application and include these benefits in the new application.

You must also include gifts from private individuals that amounts to NOK 3,000 or more in total in the subsidy-month.

For months other than the subsidy-month, you only enter the revenue amount from goods that have been supplied and services that have been rendered.

Do not include income or yield from capital, real property or other financial assets. However, rental income from real property must still be included.

Calculate the drop in revenue

Use this formula to determine the drop in revenue:

To use this formula, the enterprise applying for a subsidy for June 2020 must have been established in June 2019 or earlier. If the application concerns subsidies for July 2020, the enterprise must have been established in June 2019 or earlier.

Example calculation of a drop in revenue for enterprises that were established in the same month in 2019 for which the subsidy application is submitted in 2020:

Enterprise A has had the following revenue:

  • January 2019: NOK 40,000
  • February 2019: NOK 60,000 (the average for January and February is NOK 50,000)
  • June 2019: NOK 70,000
  • January 2020: NOK 110,000
  • February 2020: NOK 90,000 (the average for January and February is NOK 100,000)
  • June 2020: NOK 20,000 from the sale of goods and services, including a subsidy of NOK 5,000 relating to the virus outbreak.

Use this formula to determine the drop in revenue:

(Average revenue Jan-Feb 2020 – Income from the sale of goods and services in the subsidy-month) / Average revenue Jan-Feb 2020

To use this formula, the enterprise applying for a subsidy for June 2020 must have been established in July 2019 or later. If the application concerns subsidies for July 2020, the enterprise must have been established in August 2019 or later.

Example calculation of a drop in revenue for enterprises that were not established in the same month in 2019 for which the subsidy application is submitted in 2020:

Enterprise B was established in September 2019. The enterprise has had the following revenue in these months:

  • January 2020: NOK 220,000
  • February 2020: NOK 180,000 (average for January and February = NOK 200,000)
  • June 2020: 170,000
  • Enterprise B has not received any other subsidies for June 2020 relating to the virus outbreak

(200,000 – 170,000) / 200,000 = 15%

As the drop in revenue is less than 30%, enterprise B may not apply for a subsidy for June 2020.

Use this formula to determine the drop in revenue:

The revenue drop (in %) for enterprises established in March 2019 or earlier =

Example calculation of a drop in revenue for enterprises established in March 2019 or earlier:

Enterprise A has had the following revenue:

  • January 2019: NOK 40,000
  • January 2019: NOK 60,000 (the average for January and February is NOK 50,000)
  • March 2019: NOK 70,000
  • January 2020: NOK 110,000
  • February 2020: NOK 90,000 (the average for January and February is NOK 100,000)
  • March 2020: NOK 20,000 from the sale of goods and services, including a subsidy of NOK 5,000 relating to the virus outbreak.

 As the drop in revenue is over 20%, enterprise A may apply for a subsidy for March 2020.

Use this formula to determine the drop in revenue:

The revenue drop (in %) for enterprises established in April 2019 or later =

The revenue drop must also be calculated using the revenue in January and February 2020 if the enterprise did not have revenue in the same month as the subsidy-month last year, or if the enterprise had a revenue of 0 in total for January and February 2019.

Example calculation of drop in revenue for enterprises established in April 2019 or later:

Enterprise B was established in July 2019. The enterprise has had the following revenue in these months:

  • January 2020: NOK 220,000
  • February 2020: NOK 180,000 (average for January and February = NOK 200,000)
  • March 2020: 170,000
  • Enterprise B has not received any other subsidies for March 2020 relating to the virus outbreak

As the drop in revenue is less than 20%, enterprise B may not apply for a subsidy for March 2020.

Use this formula to determine the drop in revenue:

The revenue drop (in %) for enterprises established in April 2019 or earlier =

Example calculation of a drop in revenue for enterprises established in April 2019 or earlier:

Enterprise A has had the following revenue:

  • January 2019: NOK 40,000
  • January 2019: NOK 60,000 (the average for January and February is NOK 50,000)
  • April 2019: NOK 70,000
  • January 2020: NOK 110,000
  • February 2020: NOK 90,000 (the average for January and February is NOK 100,000)
  • April2020: NOK 20,000 from the sale of goods and services, including a subsidy of NOK 5,000 relating to the virus outbreak.

The drop in revenue is thereby calculated to 82,14%. As the drop in revenue is over 30%, enterprise A may apply for a subsidy for April 2020.

Use this formula to determine the drop in revenue:

The revenue drop (in %) for enterprises established in April 2019 or later =

Example calculation of a drop in revenue for enterprises established in May 2019 or later:

Enterprise B was established in July 2019. The enterprise has had the following revenue in these months:

  • January 2020: NOK 220,000
  • February 2020: NOK 180,000 (average for January and February = NOK 200,000)
  • April 2020: 170,000
  • Enterprise B has not received any other subsidies for March 2020 relating to the virus outbreak

As the drop in revenue is less than 30%, enterprise B may not apply for a subsidy for April 2020.

Use this formula to determine the drop in revenue:

The revenue drop (in %) for enterprises established in May 2019 or earlier =

Example calculation of a drop in revenue for enterprises established in May 2019 or earlier:

Enterprise A has had the following revenue:

  • January 2019: NOK 40,000
  • February 2019: NOK 60,000 (the average for January and February is NOK 50,000)
  • May 2019: NOK 70,000
  • January 2020: NOK 110,000
  • February 2020: NOK 90,000 (the average for January and February is NOK 100,000)
  • May 2020: NOK 20,000 from the sale of goods and services, including a subsidy of NOK 5,000 relating to the virus outbreak.

The drop in revenue is then calculated to 82.14%. As the drop in revenue is over 30%, enterprise A may apply for a subsidy for May 2020.

Use this formula to determine the drop in revenue:

The revenue drop (in %) for enterprises established in June 2019 or later =

Example calculation of a drop in revenue for enterprises established in June 2019 or later:

Enterprise B was established in July 2019. The enterprise has had the following revenue in these months:

  • January 2020: NOK 220,000
  • February 2020: NOK 180,000 (average for January and February = NOK 200,000)
  • May 2020: 170,000
  • Enterprise B has not received any other subsidies for May 2020 relating to the virus outbreak

As the drop in revenue is less than 30%, enterprise B may not apply for a subsidy for May 2020.

 How to calculate the subsidy amount

To calculate the subsidy amount for June and July 2020, you need to know two things:

  • The amount of the enterprise’s drop in revenue for the month for which you are applying for a subsidy (see the calculation formulas above)
  • The sum of the enterprise’s unavoidable fixed costs for the subsidy-month

This is the formula for calculating the subsidy amount:

Example calculation of subsidy amount:

Enterprise A has a drop in revenue for June 2020 of 75%. The sum of enterprise A’s unavoidable fixed costs in June 2020 is NOK 50,000.

0.75 x NOK 50,000 x 0.9 = 26,250

Example calculation of subsidy amount:

Enterprise B has a drop in revenue for July 2020 of 40%. The sum of enterprise B’s unavoidable fixed costs in July 2020 is NOK 100,000.

0.40 x NOK 100,000 x 0.7 = NOK 28,000

 

In order to calculate the subsidy amount for March 2020, you need to know three things:

  • The amount of the enterprise’s drop in revenue for March 2020 (see the calculation formulas above)
  • The sum of the enterprise’s unavoidable fixed costs for March 2020
  • • Whether the enterprise has been ordered by the state to close

If the enterprise has been ordered by the state to close, use this formula:

Subsidies for enterprises that are ordered to close by the state =

Example calculation of subsidies for enterprises that are ordered to close by the state:

Enterprise A has been ordered to close by the state. The drop in revenue for March 2020 is 75%. The sum of enterprise A’s unavoidable fixed costs in March 2020 is NOK 50,000.

If the enterprise has not been ordered by the state to close, use this formula:

Example calculation of subsidies for enterprises that are not ordered to close by the state:

Enterprise C has not been ordered to close by the state. The drop in revenue for March 2020 is 40%. The sum of enterprise C’s unavoidable fixed costs in March 2020 is NOK 100,000.

In order to calculate the subsidy amount for April 2020, you need to know three things:

If the enterprise has been ordered by the state to close, use this formula:

Example calculation of subsidies for enterprises that are ordered to close by the state:

Enterprise A has been ordered to close by the state. The drop in revenue for April 2020 is 75%. The sum of enterprise A’s unavoidable fixed costs in April 2020 is NOK 50,000.

If the enterprise has not been ordered by the state to close, use this formula:

Example calculation of subsidies for enterprises that are not ordered to close by the state:

Enterprise C has not been ordered to close by the state. The drop in revenue for April 2020 is 40%. The sum of enterprise C’s unavoidable fixed costs in April 2020 is NOK 100,000.

The subsidy amount may be limited according to the following rules:

  • If the calculated subsidy is less than NOK 5,000, the subsidy will not be paid.
  • If the calculated subsidy is more than NOK 30 million, the amount in excess of NOK 30 million will be halved when the subsidy is paid out.
  • The subsidy amount cannot exceed NOK 70 million for the months of June and July. The subsidy amount cannot exceed NOK 80 million for the months of March, April and May.

  • In general, the subsidy amount cannot exceed the drop in revenue (in kroner) that is caused by the virus outbreak.
  • If the enterprise recorded a deficit, the subsidy amount may be reduced depending on the size of deficit. This reduction is determined by a special calculation method.
  • From and including the month of April, the estimated revenue from normal business activity for the subsidy-month in 2020 cannot be more than five times higher or 20% lower than the actual revenue in the corresponding month in 2019.
  • For March and April, enterprises that have not been closed by the state must cover  amounts of NOK 10,000 and NOK 5,000 respectively of their unavoidable fixed costs themselves.

Do you have any questions?