The government has decided to extend the period for reorientation support for companies that earned less turnover as a result of the coronavirus pandemic to include the months of May, June and July 2020. However, this must be approved by the European Commission before it can be applied.
This means that more companies affected by the coronavirus crisis will be eligible for the support. According to FAR, the institute for the accountancy profession in Sweden, and information from its members, it is likely that for many companies the large loss of turnover did not materialise until late spring and summer.
The reorientation support originally applied in March and April 2020 for companies whose turnover was down more than 30 per cent. According to the Swedish Tax Agency’s information, a total of approximately 23,000 companies applied for the support, mainly in the hotel, restaurant, transport and warehousing sectors.
It is proposed that the reorientation support for May to July be on essentially the same terms as the support for March and April. To qualify for support for May 2020, a company’s net turnover had to be less than 60% of its net turnover for the corresponding period in 2019. To qualify for support for June and July 2020, a company’s net turnover had to be less than 50% of its net turnover for the corresponding period in 2019.
The maximum support is SEK 75 million per eligible company for May and SEK 150 million per eligible company for June and July. Applications for support must be submitted to the Swedish Tax Agency no later than 15 December 2020.
Azets has already assisted several customers with information and services for applying to the Swedish Tax Agency for reorientation support for March and April 2020. We are happy to help more companies apply for reorientation support for May through to July 2020. Contact us here.