Unavoidable fixed costs – how to find the amounts for your enterprise and how to document them

The enterprise must have unavoidable fixed costs in order to receive subsidies.

By unavoidable fixed costs, we mean costs that are not reduced in the short term in line with the enterprise’s level of business activity. Costs that may typically be reduced are costs that vary with revenue, the number of produced goods and services, or costs resulting from contracts for work or deliveries, etc. of a fixed duration. Long-term production contracts that last for over a year are not considered fixed duration in this context.

In order to be considered unavoidable fixed costs, the costs must be resulting from an agreement made before 1 March 2020.

Unavoidable fixed costs must be distributed evenly over the period in which they accrue.

You may only include fixed costs that can be entered under these specific items in the income statement.

Not only must the costs belong under these items, they must also be considered fixed and unavoidable.


  • Rent for commercial premises
  • Lights and heating
  • Refuse collection, water, sewage, cleaning, etc.
  • Rental of machinery, fixtures and fittings, means of transport, etc.
  • Accounting, auditor fees, consultant services
  • Electronic communications, postage, etc.
  • Insurance, tax and duties on means of transport
  • Deductible membership fees
  • Insurance premiums
  • Interest costs, not including rental income

If the enterprise operates in more than one industry, and not all of the industries are covered by the Compensation Scheme, the costs and revenue must be adjusted accordingly. You should only enter the costs and revenue related to activity in industries that are covered by the scheme.

In order to be considered unavoidable fixed costs, the costs must be resulting from an agreement made before 1 March 2020. The costs may also result from an agreement made before 1 March, which is then renewed after 1 March without expanding the scope of the agreement, and without the agreed prices being increased beyond normal price adjustment. However, costs that are incurred in relation to the preparation of accounts and auditing do not need to result from an agreement made before 1 March 2020.

Costs resulting from agreements with a limitation on the scope of the supply of goods and services, are only considered unavoidable fixed costs up to the level of supply of goods and services that were delivered to the enterprise as of 1 March 2020.

The part of the rental or leasing costs that relates to additional services must not be included as an unavoidable fixed cost. Examples of additional services are service contracts and staffing.

The costs must be reduced with the relevant discounts, price reductions, etc. that are provided for the month in which the subsidy applies.

Costs that must be entered into the balance sheet according to the enterprise’s reporting standard, for example indirect fixed costs that are entered into the balance sheet as production costs or building loan interest, cannot be considered unavoidable fixed costs.

Value added tax that is deductible for the enterprise in the VAT settlement will not be considered unavoidable fixed costs.

Unavoidable fixed costs for renting and leasing fixed assets or property are reduced by the income from subleasing the fixed asset or property.

Property tax must be entered under item 7700 in the income statement, and will not be considered an unavoidable fixed cost.

For April and May, only interest costs of up to 0.75 percent of the loan amount for the individual loans can be considered  unavoidable fixed costs. The loan amount is the remaining loan on the first day of the month for which the application for a subsidy applies.

Section § 3-2 subsection 2 states that costs, insofar as they can be classified under the items in the income statement that are listed in the provision, will be considered as unavoidable fixed costs. Where the cost is actually entered is not relevant. The costs that are included, as well as their amounts, must be able to be documented. For example, a contract showing the basis for distribution, how the fee is calculated and what it covers. The contract must have been entered into before 1 March, see section 3-2 subsection 4 of the Regulation.

You must also assess whether the costs in total qualify for a subsidy, or if they have to be adjusted. For example, you may only include the part of the cost relating to the month for which you are applying for a subsidy. Nor can you include the variable part of the cost, for example the part of the car insurance premium that relates to the odometer reading or the part of the rent that relates to revenue.

Here, you can read more about unavoidable fixed costs.

How to get an overview of your enterprise’s unavoidable fixed costs

Before you start filling out the application, it might be a good idea to make a table and enter the costs you are applying to have covered.

  1. Find the relevant contracts and invoices, so that you have an overview of your costs and where they are documented.
  2. Make a list of all the unavoidable fixed costs you have had in the month for which you are applying for a subsidy.

One way of doing this is by organising them as shown below:

Example of an overview

The enterprise’s unavoidable fixed costs in the current month (for example March 2020)

The costs you are applying to have covered by a subsidySum March 2020Where can I find the amounts and documentation?
The rent for our commercial building in Solgaten 1NOK 20,000• Tenancy agreement with the property owner, signed 1 July 2018.
• Invoice for fixed rent for the 1st quarter, amounting to NOK 60,000, paid on 31 January 2020.
Internet costs for our commercial building in Solgaten 1NOK 2,500• Invoice from the internet provider, internet in March, paid on 31 March 2020.
Insurance on our company carNOK 1,000• Invoice from the insurance company, 15 January for the time period January to March, NOK 3,000, paid 1 February 2020.

What to enter in your application

In the application form, you will be asked to enter information about the enterprise’s costs you are applying to have covered by a subsidy. If you are applying for a subsidy for March, you must provide information about the enterprise’s costs in March.

Help to complete the fields relating to costs

You must be able to document the costs for which the enterprise is applying for a subsidy

Do not attach any documentation to the application. However, you must be able to provide the documentation if we ask you to do so.

Special costs relating to services that involve the use of live animals

Enterprises that sell services where live animals are a necessary part of the service, may enter the necessary salary costs relating to the upkeep of  animals, for example costs relating to feed and veterinary services.

By necessary salary costs, we mean salary, employer’s national insurance contributions, holiday pay and pension costs related to salary payments. Insurance premiums are not included.

Examples of services that are covered by this rule are zoos, riding schools and enterprises offering dog sledding for tourists.