New support package for small business owners
On 25 March 2020, the Swedish government presented a new support package for small businesses with financial difficulties, as a result of the coronavirus.
A few of the proposals include:
- Temporarily reduced employer fees, where the employers should only cover the old-age pension frees. The proposal is to be valid for up to 30 employees and on salaries that do not exceed 25 000 sek and for the period 1 march to 30 June 2020.
- Loan guarantees for small and medium-sized companies that have suffered financial difficulties as a result of the coronavirus. The state will guarantee 70% of new loans from the banks to companies.
- Temporary discounts for rental costs for businesses in exposed industries, such as hotels and restaurants and durable goods retailers. The state will cover 50% of the rent reduction and up to 50% of the fixed rent for the period 1 April to 30 June.
- Payment respite for tax is to be extended. Business owners that report their VAT annually should be covered by the previously presented respite payments. The proposal applies to VAT to be reported from December 27, 2019 to January 17. The government previously proposed that business owners can get respite of tax payment for employer contributions, preliminary tax on salary, and VAT. The new rules are proposed to apply from 7 April, 2020, but business owners can apply retroactively from 1 January, 2020.
- Possibility to get back preliminary tax for 2019. Sole traders who are having financial difficulties due to the coronavirus can deduct 100% of their taxable profit for the year 2019 in their allocation fund. The ceiling is up to SEK 1 million.
# The Swedish government has already introduced a number of support packages designed to mitigate the financial effects of the coronavirus. To learn more about all of the options available for affected business in Sweden, including those listed above, we recommend that you visit the Verksamt.se website. The site is updated continuously. Learn more: Verksamt - coronavirus
Guidance and advice for companies financially affected by the coronavirus
Businesses in the Gothenburg region are facing different types of challenges as a result of the coronavirus pandemic. Therefore, Business Region Göteborg is currently offering extra advisory services to business operators and entrepreneurs. We have up-to-date knowledge on the support packages and have knowledge and contacts that can be helpful in dealing with various types of concrete challenges. Don’t hesitate to get in touch. Learn more: The corona virus and the Gothenburg region’s business community
- How the coronavirus can affect Gothenburg's economy
- Economic Outlook #1 2020 including - including in-depth analysis on the coronavirus (PDF)