The Swedish Government has proposed that the reorientation support introduced in June this year should be extended to also include May, June and July 2020.
The previous reorientation support was available to companies and organizations in Sweden with an annual turnover of SEK 250,000 or more which during March and April 2020 has had a loss of turnover of at least 30% compared to the same period last year as a result of the covid-19 outbreak. In order to apply for the new proposed reorientation support, the loss of turnover should be at least 40% during May 2020 and 50% for June and July 2020, compared to same period in 2019. This means that the eligibility requirements for the proposed prolonged reorientation support are more severe than the requirements for support relating to losses of turnover during March and April 2020, given that the net turnover for March and April 2020 had to be reduced by a minimum of 30% compared to the same period in 2019.
The maximum support for May 2020 is proposed to be SEK 75 million (approx. EUR 7.2 million) and for the period of June and July 2020, SEK 150 million (approx. EUR 14 million). It is proposed that the application for financial support should be received by the Swedish Tax Agency by 15 December 2020. In other respects, it is proposed that the requirements for the prolonged reorientation support should be identical to the current reorientation support, e.g., a certificate from an auditor needs to be enclosed with the application for reorientation supports exceeding SEK 100,000. For reorientation supports not exceeding SEK 100,000, such certificate is only required to be provided upon request from the Swedish Tax Agency. Further, companies should still have done what can reasonably be required to exhaust the possibilities of insurance compensation, damages and other state aid for turnover losses or costs that the support is calculated on before applying for the financial support.
Please see previous news alerts regarding reorientation support here: