These enterprises may get subsidies

Find out what it takes for the enterprise to receive a subsidy through the Compensation Scheme.

In order to determine your eligibility, you must answer between 1 and 11 questions.

The enterprise may receive a subsidy if it meets all of the criteria below.

Enterprises that are not liable to pay tax to Norway are not entitled to receive subsidies.

Enterprises that are subject to the registration obligation must have been registered in the Register of Business Enterprises or the Register of Legal Entities on 1 March 2020, at the latest.

For sole proprietorships that are not subject to the registration obligation relating to the Register of Business Enterprises, it is sufficient that the registration notification was received by the Register of Legal Entities before 1 March 2020.

For enterprises that has carried out a tax-exempt conversion, the original enterprise must have been registered in the Register of Business Enterprises or the Register of Legal Entities on 1 March 2020, at the latest, and the newly established enterprise must be registered by 1 September 2020.

Only enterprises with employees may receive subsidies. However, there are two exceptions:

The enterprise

  • runs a legitimate operation.
  • has a bank account number that is connected to the banks’ shared account and address register.
  • can document their complete ownership structure.
  • has paid taxes, duties and advance tax deductions that were due before 29 February 2020.
  • has submitted obligatory reports, returns and statements from 1 January 2019 up until the time of the application.

If the enterprise was established before 1 January 2019, the enterprise must also have submitted their tax return for wealth and income, as well as annual accounts for 2018.

 

The enterprise must meet the following criteria:

  1. It has not entered bankruptcy proceedings.
  2. It has not asked the courts to initiate bankruptcy proceedings.
  3. It has not been registered in the Register of Business Enterprises as undergoing liquidation.
  4. It does not have managers that have been disqualified from running a business.
  5. It does not have creditors that have secured a special entitlement to payments made to the applicants account, meaning the subsidy cannot be used to cover unavoidable fixed costs.
  • at least 20% if you apply for a subsidy for March 2020
  • at least 30% if you apply for a subsidy for April and May 2020

The way you calculate the drop in revenue depends on whether the enterprise was established earlier than the same period last year.

How to calculate the drop in revenue

The enterprise must have unavoidable fixed costs in order to be eligible for subsidies.

By unavoidable fixed costs, we mean costs that are not reduced in the short term in line with the level of activity, for example:

  1. Commercial premises (rent)
  2. Lights and heating
  3. Water supply and sewage
  4. Insurance
  5. Renting equipment and transportation
  6. Interest expenses, not including rental income

How to get an overview of your unavoidable fixed costs

If the enterprise operates within one of these industries, it will not receive subsidies:

  • Finance industry
  • Oil and gas production companies that fall under the oil taxation regime
  • Companies that produce, transfer or distribute electricity
  • Airlines with a Norwegian operating licence
  • Private day care centres

Important information for specific enterprises:

Do you have any questions?