Short Introduction Of Up To Date COVID-19 Measures In Sweden

• Published date: 04 March 2021
• Subject Matter: Coronavirus (COVID-19), Government Measures, Operational Impacts and Strategy
• Law Firm: Grant Thornton Sweden
• Author: Elma Feratovic and Ida Lowden

The Swedish Government has introduced a different range of measures to mitigate the economic impact of the COVID-19 virus. Below is a short summary of measures taken.

• Liquidity reinforcement via tax accounts:
  Companies can defer payment of employers' social security contributions, preliminary tax on salaries and value added tax that are reported monthly or quarterly. The payment respite covers tax payments for 3 months and is to be granted for up to 12 months. An extension fee, which is calculated at 0.2% on the granted extension amount will be charged after 6 months (changed from every calendar month). Additionally, a non-deductible interest cost at a rate of 1.25% will be charged. The extension fee must be paid no later than the date on which the deferred amount is to be paid.
  
  The deferral period is extended and will be appliable 2021 for all companies who have been granted a deferral during 2020.
• Short-time work allowance:
  Support for short-time working (also known as short-time layoffs) is regulated in the Act on short-time working (Sw: Lag (2013:948) om st'd vid korttidsarbete). Short-time working means that employers can reduce their employees' working hours and receive financial support from the central government to compensate for a significant part of the costs for retaining the employee.
  
  The Swedish Agency for Economic and Regional Growth (Sw "Tillv'xtverket") is the administering authority for the short time working scheme.
  
  The Government has announced that the support will be extended up to seven months and that the support will be increased during the period January to March 2021. Companies are not entitled to the support if the company during the support period, the two months before the support period and six months after the support period executes a decision on distribution of dividends Tillv'xtverket has also announced that group contributions will not be an obstacle for short-term support being granted.
• Reduced fixed rents:
  The proposed reintroduced support means that landlords who...