COVID-19: Government Support Package - Norway 2 July 2020 - EY
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COVID-19: Government Support Package Norway 2 July 2020
2 COVID-19: EMEIA EY Government Support Package
In a series of announcements, the Norwegian government has set out three crisis packages
(latest 12 May) to support public services, people and businesses through the disruption
caused by the COVID-19 outbreak. The measures focus on supporting employment,
providing cash flow support to businesses, increased welfare support and government
spending on various measures and projects. These measures became increasingly
substantial as Norway had closed school and businesses within a variety of sectors
(hospitality, leisure, bars, culture, etc.) and despite the re-opening of most businesses and
increased normality, the measures continue to give significant aid to affected businesses
Outside the imposition of civil restrictions, the measures can be grouped into six main areas
which are being delivered via four distinct channels.
Areas being addressed: These aims are primarily being delivered
through:
1. Providing liquidity through financing schemes
► The banking system in terms of both financing
2. Enabling temporary lay-offs to be financed by
schemes that have been announced;
the government
► The governmental bond fund;
3. Support for businesses through reduced or
delayed taxes and VAT ► The central tax system for reduced or delayed
taxes and VAT;
4. Cash-flow support to closed businesses
► The benefit system though paid income for
5. Government spending on various projects
temporary lay-offs and statutory sick pay; and
6. Increased innovation and research grants
► Increased innovation and grant schemes
5 July 2020 COVID-19: EMEIA EY Government Support Package
3 Norwegian Government announced responses
Liquidity and financing Cash flow measures Tax and VAT
Coronavirus state guaranteed COVID-19 governmental Cash support • Corporate income tax law is being
loans investment fund amended to allow companies to
Companies directly affected by carry back 2020 losses to offset
Helps businesses affected by The new COVID-19 state fund will invest COVID-19 measures, i.e. certain profit from 2018 and/or 2019.
coronavirus to access bank lending in bonds issued by larger Norwegian businesses that have been closed by • Deadlines for corporate income
guaranteed by the state up to 90% of companies to be listed on the Oslo Stock the government (e.g. hairdressers), tax, employer social security
the loan. Maximum loan amount is Exchange. Loans must be issued on shall be eligible to cash support under contributions, VAT payments and
NOK 50 million for SMEs and NOK150 market terms and with a credit rating certain requirements with a limit of certain excise duties have been
million for larger businesses, with above CCC+ (or equivalent). NOK 20 billion. The scheme is postponed.
maximum maturity period of 3 years. focusing on distributing cash quickly • Temporarily reduce the lower rate
and establishing easy application of VAT from 12 % to 6 %.
procedures to ensure a non- • Temporary tax relief measures are
bureaucratic process. implemented for oil and gas
companies.
• Depreciation rate for machinery
acquired in 2020 is proposed
increased from 20% to 30%.
Other support measures and grants Employment support Welfare
Start-ups and innovation Other measures to note Temporary lay-offs • Increasing the percentage of
support (NOK 4.6 billion) income coverage under 3 G (1 G =
► Increase environmental technology Employers may temporarily lay off NOK 99,858) for unemployment
► Reduced interest rates and interest fund investments. employees if there are reasonable benefits. Reducing the
support on innovation loans. ► NOK 200 million to green shipping. grounds. If an employee is temporarily unemployment benefits eligibility
► Increased grants for new ► Immediate start of new maintenance laid off, they should typically be threshold.
innovation and science projects. projects within rail, road and eligible for unemployment benefits. • Reducing the period in which
► Incubator support (NOK 50 million). safeguarding. Additional measures have also been employers must pay staff for sick
► NOK 1 billion in increased seed ► NOK 1 billion to support students, in implemented, such as reducing the leave to 3 days.
investments by the public seed addition to increased loans. period in which employees need to be • Doubling the number of paid days
investment fund. ► Suspend tax on air passengers for paid 100% of their salary to 2 days for childcare that employees are
flights until Oct. 2020 and payments from 2 weeks. entitled to.
of aviation charges until June 2020.
5 July 2020 COVID-19: EMEIA EY Government Support Package
4 Liquidity and finance: Governmental loan and
guarantee package for Norwegian businesses
To secure the liquidity of Who is eligible? What does it cover? Practicalities
Norwegian businesses Eligibility criteria includes: ► The Government will support lending ► Companies will need to demonstrate
under new legislation that through financial institutions by that if it was not for the COVID-19
► Norwegian registered businesses’,
came into force on 27 meaning businesses with a right and
guaranteeing up to 90% of newly related disruption, a lender would
March 2020, financial provided loans. This is limited to NOK extend a loan to them.
duty to register in the Norwegian
50 billion.
institutions are now able to Register of Business Enterprises. ► Companies will need to consider
grant loans to businesses ► A new loan under the scheme cannot which and how many lenders to
► The legislation differentiates
with the government exceed NOK 50 million and two times approach and how to give
between SMEs and larger businesses.
the SME’s labor costs for 2019. The themselves the best chance of
guaranteeing up to 90 % of SMEs are considered to be
loan shall as far as possible be given success – the total debt burden must
the loans. This arrangement businesses that at a consolidated
on the same conditions as under not be an obstacle for future
level i) have fewer than 250
is limited to NOK 50 billion. normal circumstances, and must not success.
employees, and ii) have a turnover
have a term exceeding 3 years. The
per year not exceeding EUR 50 How is it assessed?
loan amount may in particular cases
million or iii) have a balance not
be higher than NOK 50 million, Companies can apply for loans under
exceeding a total of EUR 43 million. ►
depending on documented liquidity this package directly with one of the
Larger businesses are businesses
needs of the company for the next 150+ accredited financial
that does not fulfill neither criteria i)
18 months. For larger businesses institutions.
and ii) or iii) above.
the maximum loan amount under the
► Businesses that under “normal” scheme is NOK 150 million, and the
circumstances would be profitable. applicable period for documented For more information
liquidity needs is 12 months .
► Businesses experiencing sudden Ingvild O. Kaagen
liquidity challenges mainly due to ► An annual guarantee commission
COVID-19. shall be charged by the Government Ingvild.O.Kaagen@no.ey.com
to the lending financial institution at Tel: (+47) 934 41 216
► Businesses that were experiencing
a rate of between 0.25% - 0.5% of
financial difficulties as at 31 Mads Ribe
the guaranteed amount.
December 2019 (notwithstanding
their financial year end) are not ► Currently this scheme is only Mads.ribe@no.ey.com
eligible. For this evaluation there are expected to apply to new loans Tel: (+47) 992 27 156
added criteria's for larger agreed prior to 31. December 2020,
businesses. however, this may be extended.
► Loans obtained under this scheme
cannot be used to refinance existing
loans.
5 July 2020 COVID-19: EMEIA EY Government Support Package
5 Liquidity and finance; (re)establishment of the
Norwegian governmental bond fund
The Norwegian government How is the fund administered? Which instruments can the fund Amendments to the Norwegian
has decided to (re)establish ► The majority of investments by the invest in? Securities Trading Act
the Norwegian fund in the corporate bond market ► The Fund can invest in interest- ► The Norwegian Parliament has
governmental bond fund to will be to non-financial businesses. bearing instruments and cash passed amendments to the
provide liquidity to the Investments in banking and financial deposits but these are limited to; Securities Trading Act relating to
institutions cannot exceed 50% of the mandatory bids that must be made
corporate bond market. The fund’s investment capital. ► Negotiable bonds and other
to minority shareholders in a
fund’s investment limit is negotiable debt instruments
► Investments shall be made in bonds takeover context. Currently bidders
NOK 50 billion. issued by Norwegian companies;
listed on the Oslo Stock Exchange must pay sellers the highest price
The legislation related to and should be on market terms and ► Cash deposit; and paid for any shares purchased in the
made with other third-party last six months.
this package came into ► Financial derivatives and
investors. currency instruments that are Given the fall in market prices, the
force on 27 March 2020, ►
Up to 50 % of the fund can be similar to bonds. aim of the amendment is to ensure
and the funds mandate was ►
invested in bonds issued by that all shareholders are given the
published on this day too. same opportunity to sell on equal
companies with an investment grade
equivalent of a S&P’s credit rating of terms and that bidders pay a price
BB+ or lower. No investments will be that reflects current market value.
in bonds with a rating of CCC or
lower (or equivalent). Additional information
► In the primary market, the fund shall ► The National Insurance Fund has
invest alongside other investors. For more information:
determined performance
► Once certain investment volume measurement and a control and risk Ingvild O. Kaagen
thresholds are met the fund must be management framework that
Ingvild.O.Kaagen@no.ey.com
able to demonstrate that complies with internationally
investments have been made in line recognized standards and methods. Tel: (+47) 934 41 216
with market prices. ► The fund shall report publicly on its
administration and performance of
Mads Ribe
the fund.
Mads.ribe@no.ey.com
► The fund shall report on an annual
and 6 month basis. Tel: (+47) 992 27 156
5 July 2020 COVID-19: EMEIA EY Government Support Package
6 Compensation scheme (cash support) for companies
with significant decrease of revenue
A cash compensation Who is eligible? What does it cover? What are the practical
scheme was approved on Eligibility criteria's is regulated by law The scheme: considerations?
31. March 2020 to provide and provisions, the main criteria ► The scheme was approved by the
► Has a budget of NOK 80 millions per
cash to businesses that include:
month per company until the end of Norwegian Parliament on 31 March
have experienced a ► Businesses that are registered in the May 2020. 2020 and a digital application portal
significant decline in Norwegian business register and are has been set up. The digital
► Aims to cover part of the distressed application portal can be found at
revenue due to COVID-19. under Norwegian taxation, that have
businesses’ ‘unavoidable’ expenses www.kompensasjonsordning.no
experienced a significant decrease in
The law and corresponding and fixed costs, such as rent, interest
revenue (min 20 % in March and 30 % ► The portal is now open for
on loans, long-term loans, rental of
provisions were passed on in April and May) due to COVID-19
equipment, insurance and applications under the scheme.
17 April 2020. pandemic or the related restrictions
accounting costs. ► The deadline for applications for
imposed by the Norwegian
The main goal of the Government. ► The aid granted is limited to cover March, April and May is 31 July
expenses for March, April and May 2020.
package is to partially cover ► The formula for compensation for
businesses’ current only. ► The deadline for applications for
companies that are forced closed by
operating expenditure, the government: Lost revenue (%) * June, July and August is 31 October
0,9. For other companies: Lost 2020.
focusing on establishing
revenue (%) * (fixed monthly cost –
easy application
deductible) * 0,8.
procedures, broad eligibility How is it accessed?
and swift pay-outs. ► The scheme is not applicable to
business which was already filing, or ► The Norwegian Government has set
in the process of filing for up a digital portal to handle
deregistration, closure or applications in an as easy and
bankruptcy/liquidation prior to the efficient way as possible, with a focus For more information
implementation of the cash support on swift cash distributions to a broad
scheme. number of companies. Ingvild O. Kaagen
► Businesses operating in finance, oil, Ingvild.O.Kaagen@no.ey.com
aviation businesses with Norwegian
Tel: (+47) 934 41 216
AoC, shipping, energy, private
kindergartens and public companies
or businesses without employees are
Mads Ribe
not eligible for cash compensation
under the scheme. Mads.ribe@no.ey.com
Tel: (+47) 99 22 71 56
5 July 2020 COVID-19: EMEIA EY Government Support Package
7 Stimulus package for small businesses, start-ups and
entrepreneurs
The Norwegian Government Who is eligible? What is available? What are the practical
announced on 27 March The increased funding will mainly be ► Grants to entrepreneurs and growth considerations?
2020 a new NOK 4.7 Billion allocated to pre-existing schemes companies of NOK 2.5 billion, as well ► Since several of the support
stimulus package focusing managed by Innovation Norway, as grants of NOK 50 million to schemes are already in place, and
on small businesses including the following: private start-up / incubators (who the new measures merely increase
offer loans to start-ups) in order to their budgets, it is expected that
involved in R&D projects. ► Interest subsidy scheme: Companies
maintain offers for start-ups.
that have borrowed under existing companies can benefit from the
The package will increase schemes and incurring interest ► Increased loan limit on innovation increased funding relatively quickly.
Innovation Norway’s already expenses may be able to obtain loans to NOK 3 billion. At the same ► Companies eligible for innovation
large budget. The funds will interest subsidies. This subsidy can time, an additional NOK 250 million grants or R&D incentives, will need
be allocated to several key also be given to companies who are is allocated to R&D activities in the to apply to the relevant public
financing early stage R&D projects. business sector. authority (e.g. the Public Innovation
aid schemes, including
Innovation loans: This is mainly The public investment company has Fund) for the applicable grant.
interest support schemes, ► ►
innovation and aimed at SMEs, but the scheme may been granted an increased
also apply to large companies. investment capital NOK 1 billion to
establishment grants, loss improve access to seed funding.
provision support and other ► Innovation grants: Aimed at
promoting and stimulating small
grant schemes.
businesses involved in manufacturing
An additional new green and services, intellectual capital and
For more information
package of NOK 3.6 billion R&D.
Ingvild O. Kaagen
for innovation and research ► Establishment grants: This is for
How is it accessed?
is proposed by the entrepreneurs and start-ups with Ingvild.O.Kaagen@no.ey.com
innovative business ideas and growth ► The budget increase is primarily
Norwegian Government. Tel: (+47) 934 41 216
potential, but who have limited directed at schemes already
access to equity. managed by Innovation Norway, the
Research Council of Norway and the
► A new temporary support grant of Mads Ribe
public investment vehicle, Investinor.
NOK 50 million for incubators and
Mads.ribe@no.ey.com
entrepreneurial programs to ensure ► For more information:
that incubators can continue to Tel: (+47) 99 22 71 56
► https://www.innovasjonnorge.no/no/
provide services and guidance to
start-ups and growth companies. ► https://www.forskningsradet.no/
► A new growth guarantee scheme ► https://www.investinor.no/
where 75 % of bank loans to scale-
ups are guaranteed by the
5 July 2020 Innovation Fund.
8 Cash flow support: Government tax deferrals
Norwegian companies can What is the future cashflow What are the practical For more information
now offset 2020 tax losses support? considerations? Anna Berna Scapa Passalacqua
against taxable profits Losses incurred in 2020 may now be To optimize the effect, companies (International Tax and Transaction
generated in 2018 and/or carried back and offset against profits should take this into consideration when Services)
2019. recorded in 2018 and 2019. The losses determining their group contributions Anna.Berna.Passalacqua@no.ey.com
available to be carried back are limited for the 2019 tax year. Group
to NOK 30m. This will be applied contributions are a mechanism available Tel: +47 918 74 746
automatically. As companies are liable in Norway to consolidate taxable income
to pay tax for the 2020 tax year in in a tax group. A company holding more
2021, the cashflow effect will first be than 90% of the shares in a subsidiary
recognized in 2021. However, the may form a group for tax purposes.
Government assumes that the
As the deduction is granted
adjustment will improve the companies’
automatically, companies that do not
access to short-term loans in the
wish to apply the deduction must
transitional period.
specifically claim this in their tax return
This rule applies for all taxable entities for 2020 which is due on 31 May 2021.
in Norway for the year 2020, 2019 This may be the case if the company has
and/or 2018. not endured financial distress due to the
crisis, and that they would rather carry
Technically, the carryback is calculated
the losses forward. Under Norwegian
as a tax deduction of 22% of the tax
tax legislation, losses can be carried
losses incurred in 2020, limited to the
forward indefinitely.
taxable income for 2019 and/or 2018.
For companies under the current For companies taxed partly under the
financial tax regime, the rate is 25%. petroleum tax regime, the temporary
changes under the general tax regime
will only apply for the income not
included in the tax base taxed under the
petroleum tax regime.
5 July 2020 COVID-19: EMEIA EY Government Support Package
9 Cash flow support: Government tax deferrals
Norwegian companies can What payments can be • Deadline for payment of the For more information
now postpone payments of deferred? employers’ social security
contributions: for term 2, the Anna Berna Scapa Passalacqua
tax obligations and certain The Norwegian government has deadline for payment is postponed (International Tax and Transaction
excise duties. extended the deadline for the following from 15 May to 17 August 2020. For Services)
tax payments: term 3 the deadline for payment is Anna.Berna.Passalacqua@no.ey.com
• Second instalment payment for proposed extended from 15 July to
15 October 2020. Tel: +47 918 74 746
2019 corporate income tax:
Deadline extended from 15 April Cecilie Dyrnes (Indirect taxes)
2020 to 1 September 2020.
However, electric power enterprises What are the practical Cecilie.dyrnes@no.ey.com
will not be able to postpone advance considerations? Tel: +47 982 94 516
tax payments on ordinary income.
• Corporate Income tax filings for Svein Haagensen (People Advisory
• First VAT instalment for 2020: 2019 are postponed from 31 May to Services)
Deadline extended from 14 April 31 August 2020.
2020 to 10 June 2020. Svein.Haagensen@no.ey.com
• VAT filings will be due as normal.
• Deadline for payment/reporting Tel: +47 481 37 892
extended from 18 April until 18 • No interest shall accrue due to the
June for the following excise duties: extension of payments approved by
road tax on petrol, unmarked mineral the Government. For further
oil, bioethanol, biodiesel, natural gas extensions, the Government has
and LPG imported into/produced in proposed that to reduce the interest
Norway, the basic fee on mineral oil rate on late payments from 9.5 to
etc., the CO2-excise duty on mineral 6% p.a.
products, sulphur excise duty, excise • No application needs to be made for
duty on alcohol, (incl. tech. ethanol), the deferral of the VAT payment.
excise duty on non-alcoholic
beverages etc., excise duty on • In the event that prepayments of tax
beverage packaging: environmental have already been made, the
tax and basic tax. company can contact their local tax
authority to claim the prepayment of
tax back.
5 July 2020 COVID-19: EMEIA EY Government Support Package
10 Cash flow support: accelerated depreciation rate for
machinery & others
The Government has What assets can be depreciated What are the practical For more information
proposed temporary at an accelerated rate? considerations? Anna Berna Scapa Passalacqua
accelerated depreciation For newly acquired assets that fall in • The increased rate of 30% will apply (International Tax and Transaction
rates for newly acquired asset group D (machinery, passenger only to assets acquired from the time Services)
machinery for the 2020 cars, movable furnishings, etc.), the the proposal enters into force and Anna.Berna.Passalacqua@no.ey.com
fiscal year. depreciation rate is proposed until the end of 2020.
temporarily increased to 30% for the Tel: +47 918 74 746
• Tax payers planning to invest in fixed
income year 2020. The increased
machinery assets should consider
depreciation rate shall apply also to
making the investment in 2020 to
qualifying additions made to such assets
benefit from the accelerated
in 2020.
depreciation scheme.
The increased depreciation rate shall
not apply for fixed assets acquired from
related parties (i.e. ownership or control
for at least 50%).
5 July 2020 COVID-19: EMEIA EY Government Support Package11 Cash flow support: Oil & Gas sector
The Government proposes What is the future cashflow What are the practical For more information
reliefs for companies taxed support? considerations? Eivind Galta
under the petroleum tax On 12 June 2020, the Norwegian • Companies should reassess project (International Tax and Transaction
regime for temporary Parliament adopted temporary tax economics with the new measures in Services)
deduction of investments stimulus measures for oil and gas place for investments.
companies. The main features are: Eivind.galta@no.ey.com
cost and refund of value of • Refund of tax value of tax losses Tel: +47 902 71 142
certain tax losses. ► Oil and gas companies can should improve short/medium term
depreciate 100 % of investments liquidity issues.
against special tax basis (56%) of
investments in 2020 and 2021.
► The uplift is increased from 20.8 %
(5.2 % for four years) to 24 % in the
year of investment.
► Companies generating tax losses
may receive a cash refund of the tax
value for their losses in 2020-21.
► The temporarily measures are
applicable for investments made in
2020 (after 12 May) and 2021,
including investments for projects
where a plan (PDO* or PIO**), plan
exemption application or application
for significant amendment of already
approved plan, is submitted by the
end of 2022 and sanctioned by the
end of 2023, until the year of
planned production start-up.
► * - PDO: Plan for Development and
Operation of petroleum deposits.
► ** - PIO: Plan for Installation and
Operation.
5 July 2020 COVID-19: EMEIA EY Government Support Package12 Cash flow support: Government tax reductions
Suspension of aviation VAT reductions Reduction of other taxes For more information
charges, a temporary • The employers national insurance
• The tax on air passengers for flights contributions for the third payment Cecilie Dyrnes (Indirect taxes)
reduction of the 12 % VAT in the period 1 January until 31 period of 2020 is reduced four Cecilie.dyrnes@no.ey.com
rate to 6 % and a reduction October 2020 has been suspended. percentage points and a
in employer’s social security compensation scheme for employers Tel: +47 982 94 516
• Aviation charges have also been
contributions. suspended until 31 June 2020. in zone V (target zone) and Svalbard Svein Haagensen (People Advisory
is being introduced. The employer Services)
• Temporary reduction of the VAT low social security rate varies dependent
rate from 12 % VAT rate (applicable on where the company is established Svein.Haagensen@no.ey.com
on passenger transport, cultural in Norway. Tel: +47 481 37 892
events etc.) to 6 % from 1 April • The third payment period is relating
2020 to 31 October 2020. to May and June 2020.
• Proposed postponing the deadline
for municipalities and counties to
submit tax returns (RF-0009) for
first term 2020 from 10 June 2020
to 31 August 2020
• From 1 April 2020, natural gas and
LPG used for chemical reduction /
electrolysis and metallurgical and
mineralogical processes will be
exempted from CO2 taxes. The
Ministry is aiming for a gradual
escalation of the CO2 taxes from
2021.
5 July 2020 COVID-19: EMEIA EY Government Support Package13
Employment: temporary lay-offs
What’s measures are ► Self-employed individuals and What are the requirements?
freelancers receive compensation for
Businesses that need to implemented due to COVID-19? loss of income from day 17 after the ► This scheme applies to all business and it does
temporarily reduce their Under Norwegian law, all companies can loss of income began. The temporary not restrict an employer’s ability to
workforce due to the COVID- securement of income shall be equal subsequently reduce the size of their
temporarily lay off employees due to
to 80% of average income in the last workforce.
19 pandemic may temporarily temporary difficulties, e.g. loss of
year and is limited to a maximum of 6
lay-off their employees income. In connection with these rules, G. ► Temporary lay-offs require reasonable grounds
the following measures have been related to the business and not the employee.
instead of having to terminate To ensure that that laid off employees
implemented: ►
their employment. receive the unemployment benefits as ► The employer must act reasonably in
► Previously, when the lay-off period swiftly as possible, the National evaluating who should be laid off, i.e. principles
commenced, employers had to pay 100% Insurance System (“NAV”) may grant
of selection of who is to receive the lay- off
of the employee salary for the first 15 unemployment benefit (equal to 60 %
To furlough/ temporary lay- days of the lay-off period (employer of the income), without processing the
must be adhered to and documentation
period). This has temporarily been maintained.
off employees is a temporary application. The advance payment will
reduced to 2 days. The income is taxed in be offset against NAV’s final decision.
measure where the ► In addition, the employer must follow a
line with normal rules. The Parliament
employee's obligation to work prescribed line of action / procedure, which
has decided to repeal the reduced two-
day employer period and implement a
How long may a temporary includes notifying NAV and fulfilling its
and the employer's obligation
ten-day employer period. The changes lay-off period last? obligations with respect to providing
to pay salary is suspended. are in effect from 1 September. information and consulting with the employees’
The employer is under normal ► A maximum of 26 weeks. The elected representatives / employees and work-
► Following the employer period, the State Government has proposed to
conditions obliged to pay councils (arbeidsmiljøutvalg).
assumes the obligation to pay the extend this to October for
salaries for 15 days following employees salary (limited to 6 G = ca. employees that are near to exceed ► Following notifying the NAV and consulting the
a temporary lay-off. This NOK 600,000). Laid off employees are employee’s selected
the maximum period for
guaranteed salary compensation
period has now been reduced unemployment benefit. representatives/employees, the employer is
(unemployment benefit) by the State
normally required to give the employees a 2
to 2 days. Following the 2 equal to 100 % of their income for the ► This period has been extended to
first 18 days after the employer period week notice period prior to the temporary lay-
days, the State pays the June for people who are nearly offs being effective. The effects of the COVID-
has expired. Thereafter, the employees
employee salary. During exhausting the maximum period 19 may be considered an unforeseen event and
are guaranteed 80% of their income up
furlough the employment to 3 G (1 G = NOK 99,858). For income for unemployment benefit. may justify a 2 day notice period.
relationship continues to exist, between 3 G up to 6 G, laid-off
employees receive 62.4% of their salary.
and it is assumed that the Income above 6 G is not compensated.
For more information
work stoppage is temporary. ► The threshold to be eligible for salary
compensation when laid-off is reduced Helga Aune Elise Sauarlia
from 1.5 G to 0.75 G, and it is sufficient helga.aune@no.ey.com elise.e.sauarlia@no.ey.com
for the employees working hours to be
reduced by 40% (formerly 50 %). Tel: (+47) 468 30 944 Tel: (+47) 916 27 594
5 July 2020 COVID-19: EMEIA EY Government Support Package14 Other employment issues
Sick-leave pay Paid days for childcare
The employer period for paying salary The paid days for taking care of small
related to sick-leave due to COVID-19 is children (12 years and younger) is
reduced from 16 days to 3 days. The doubled from 10 days to 20 days. The
current 100 % coverage of sick leave employers are to pay 3 days of the care
pay up to 6 G (approx. NOK 600,000) is leave while the State pays the rest
not adjusted by the Parliament. (limited to 6 G). The Government has
proposed normalization of the allocation
Self-employed workers and free-lancers
scheme from July 2020.
are entitled to sick leave pay from the
NAV/National Insurance System from Self-employed workers and free-lancers
day 4 of the period of sickness. are to receive paid care leave from the
State from day 3.
The right to receive Governmental grants for For more information
unemployment benefit during suspending effective lay-offs Helga Aune
public holidays The Parliament has passed an act on helga.aune@no.ey.com
Normally NAV does not pay grants for employers that choose to
unemployment benefit during public suspend an employee’s temporary lay- Tel: (+47) 468 30 944
holidays. The legislation is meant to off.
prevent employers from temporarily If the employer has had a decrease in
laying off their employees right before Elise Sauarlia
revenue of at least 30 % the employer is
the holidays to lower salary costs. entitled to a monthly grant of NOK 15 elise.e.sauarlia@no.ey.com
Employers may however apply for an 000 for each employee that returns to
exemption. Tel: (+47) 916 27 594
its former employment percentage.
This has now been amended and NAV
will pay employment benefit even if the
benefit day is a public holiday.
5 July 2020 COVID-19: EMEIA EY Government Support Package15 Global EY COVID-19 Stimulus Response Tracker
Our tracker provides a Key jurisdictions covered by the Response Tracker include:
snapshot of the policy
changes that have been ► Australia ► Denmark ► Malaysia ► Sweden
announced in jurisdictions
► Austria ► France ► New Zealand ► Switzerland
around the world in
response to the COVID-19 ► Belgium ► Germany ► Norway ► Taiwan
crisis. ► Brazil ► Greece ► Puerto Rico ► Thailand
Policy changes across the ► Canada ► Hong Kong ► Singapore ► Ukraine
globe are being proposed
and implemented on a daily ► China ► Indonesia ► Slovak Republic ► United Kingdom
basis. ► Colombia ► Italy ► Slovenia ► United States
The document will be ► Cyprus ► Japan ► South Korea
updated on an ongoing
basis but not all entries will ► Czech Republic ► Luxembourg ► Spain
necessarily be up to date as
the process moves forward.
To download the latest Response Tracker visit:
ey.com/en_us/tax/how-covid-19-is-causing-
governments-to-adopt-economic-stimulus--
5 July 2020 COVID-19: EMEIA EY Government Support PackageContact
16
Anna Berna Scapa Arild Vestengen Cecilie Dyrnes Svein Haagensen Ingvild O. Kaagen
Passalacqua Business Tax Advisory Indirect tax People Advisory Services FSO – Law
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