Factsheet for measure
SE-2020-27/1257
–
Updated
– measures in Sweden
Reorientation support for companies
Omställningstöd till företag
Background information
Reorientation support is a measure that seeks to both support companies during the first stages of the COVID-19 crisis and also help them to adapt their business activity in the rapidly changing labour market.
The legal basis of this measure is the Decree on Reorientation support (2020:552) (in Swedish 'Förordning om omställningsstöd').
Content of measure
This measure is available for companies and organisations that have lost a significant part of turnover during spring 2020. It was first available only for March and April 2020 (the application period was between July 2020 and August 2020) but at the beginning of September 2020, the Government proposed to make the applications for May, June and July 2020 possible.
In order to be eligible, applicants must meet the following requirements:
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a recognised minimum net turnover of SEK 250,000 (approximately €25,000) in 2019 or the most recent financial year;
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at least 30-50% (depending on which month they apply for) decline in net turnover due to the COVID-19 pandemic in comparison to the previous year;
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have approved Swedish corporate taxation (F-tax).
The amount depends on the extent of the decline in net turnover. The maximum amount of support is SEK 30 million (approximately €3 million). It covers up to 70% of the fixed costs. Small companies can get 75-90% of their fixed costs compensated.
This measure is administrated by the Swedish Tax Agency (Skatteverket). The budget for the support in March and April was SEK 39 billion (approximately €3.9 billion). No information available regarding budget for the extension (May, June and July 2020).
Updates
The following updates to this measure have been made after it came into effect.
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11 January 2022
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Due to the new wave of COVID-19 and new restrictions, this measure was activated again. The support period is between December 2021 and February 2022. There are no changes in the eligibility criteria.
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06 July 2021
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The duration of this measure has been extended until the end of September 2021.
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01 March 2021
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The Government has extended this measure, until the end of April 2021. The Government has further proposed for the extension until the end of June 2021, but approval from the EU is pending.
To ensure alignment with EU regulations a new way of calculating the amount of support has been introduced. Support is now provided in an amount corresponding to a certain percentage of the so-called uncovered fixed costs for the specified period. Non-covered fixed costs are the company's fixed costs according to the same definition as before, minus the so-called gross margin.
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19 December 2020
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The Government has proposed for the extension of this measure until the end of February 2021. They are currently waiting for approval from the EU.
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Use of measure
This form of support has been particularly popular in the hotel and restaurant sector, in the transport sector, and wholesale and retail trade.
As of 5 August 2020, approximately 12,000 companies had applied for support and 9,335 had been granted support. The amount of support granted was SEK 663 million (approximately €63 million).
Since the application reopened on 25 February, companies has (as of March 23) applied for SEK 285 million in support for the months of August – October. The amount applied for November – December amounts to approximately SEK 480 million. For the last two support months, January – February, which became available to apply for in March, companies have so far (as of March 23) applied for SEK 105 million in support.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Applies to all businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Unknown
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: N/A
Involvement
No information available.
Views and reactions
The Confederation of Swedish Enterprises (Svenskt Näringsliv) has argued for the extension of this measure to cover May, June and July 2020. They have also criticised this measure for not been suitable for companies that have been newly established. The use of the comparison period (usually 2019) excludes companies that were established less than a year ago.
Sources
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22 June 2020: Criticism towards ending the support "risk for a wave of bankruptcies") (Kritik mot stoppat stöd: ”Risk för konkursvåg”)
(www.svd.se)
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05 August 2020: Hotels and restaurants have been granted the most reorientation support (Hotell och restauranger har beviljats mest omställningsstöd)
(www.realtid.se)
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01 September 2020: Reorientation support for companies with considerable declines in turnover
(www.skatteverket.se)
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04 September 2020: Reorientation support extended for May, June and July (Omställningsstödet förlängs för maj, juni och juli)
(www.regeringen.se)
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12 January 2021: Reorientation support March 2020 - February 2021 (Omställningsstöd mars 2020 till februari 2021)
(www.regeringen.se)
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23 March 2021: The Tax Agency about the criticism about the new reorientation support: "We were too generous"
(www.di.se)
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06 July 2021: Reorientation support from March 2020 to September 2021
(www.regeringen.se)
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11 January 2022: Regeringen förlänger krisstöd till företag [Government extends crisis support for companies]
(www.regeringen.se)
